French public sector pension scheme Ircantec has announced the divestment of 12 companies from its portfolio following asset managers’ application of the €12.9bn provider’s new climate policy.
The companies concerned are: Anglo American, BHP, BP, EnBW Energie Baden-Württemberg, ENI, Equinor, Fortum, Mitsubishi Corp, OMV, RWE, Repsol, and Total.
Ircantec did not state the value of its holdings in these companies.
In a statement, Ircantec said a large part of the disposals was linked to the production or development of new unconventional hydrocarbon projects, while the rest were due to corporate involvement in thermal coal.
Last year Ircantec, which is an unfunded scheme but has invested reserves, announced an updated climate change policy with a progressive tightening of exclusions, aligned by 2024 with the fossil fuel exclusions in the EU Paris-Aligned Benchmark.
Asset managers had until the end of the first quarter of 2022 to ensure their investments for Ircantec met the first stage of the pension scheme’s new exclusions policy. Companies exceeding certain thresholds, such as having more than 30% of production stemming from non-conventional fossil fuel activity, can avoid being sold if they have a credible plan to exit coal, or non-conventional hydrocarbons, by 2030.
By 2030 Ircantec aims to have zero exposure to thermal coal globally and zero exposure to any oil and gas company that does not have a credible emission reduction plan compatible with warming of compatible with a 1.5°C warming scenario.
It says it aims to be transparent about its commitments and will publish annually all the securities held in its portfolio as well as a list of divested companies .
Last month Ircantec signed a new “objectives and management agreement” for the four year period 2022-2025. The provider described the agreement as being based on six axes, including modernising the scheme’s relationship with its affiliates and retirees, transforming the management processes to integrate inter-scheme projects, and ensuring the long-term solvency.
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