Most of the largest asset managers are continuing to support fossil fuel expansion and pension funds need to step up, according to a group of NGOs.
Representing the group, Reclaim Finance said it had identified “massive and persistent investments in fossil fuel expansion” among 30 major European and US asset managers.
Collectively, they held at least €16.9bn in more than 100 bonds issued by the largest fossil fuel developers between 1 January 2024 and 30 June 2025, Reclaim said.
It added that only a few of the asset managers assessed “appear to have taken credible steps to limit investment in fossil fuel investment”, naming Ostrum Asset Management, Aviva Investors, BNP Paribas Asset Managers, Generali Asset Management and Nordea Asset Management.
The NGO also assessed shareholder voting at company annual general meetings (AGMs) in 2025, with no progress to report.
It said asset managers had approved 81% of board re-elections and discharges, on average, this year, which validates the actions of fossil fuel developers’ directors.
Union Investment was praised for opposing almost all fossil fuel expansion strategies at annual meetings, with Amundi and BNP Paribas AM standing out “slightly” for their opposition (55% and 44%, respectively).
However, Reclaim noted, the asset managers all retained their positions in companies pursuing such expansions.
The report concluded that the lack of progress was a sign that asset owners are not exerting enough pressure on asset managers.
“While some asset owners have already taken action, they must all demand more from their asset managers and insist on robust climate action”
Agathe Masson at Reclaim Finance
“While some asset owners have already taken action, they must all demand more from their asset managers and insist on robust climate action,” said Reclaim Finance’s sustainable investment campaigner, Agathe Masson.
“They must ensure that asset managers take their climate concerns into account and stop supporting ongoing fossil fuel expansion. And if asset managers cannot meet their requirements, they must not entrust them with any new investments.”
In separate research, the Australasian Centre for Corporate Responsibility today said the financial case for exploration was getting worse, and that oil and gas majors would create significantly more shareholder value by ending exploration and sharply curtailing upstream development.
Last year, French pension fund ERAFP unveiled a tighter fossil fuel investment policy, saying that from 2030, it would no longer make fresh investments in the debt of oil and gas companies developing exploration or production projects, unless they have a credible strategy for aligning with the goal of keeping temperature rises to 1.5°C by the end of the century.
Earlier this year, Lothian Pension Fund in Scotland launched a new climate change policy, which includes “a presumption against continued investment in laggard oil and gas companies” in a bid to promote a managed decline for the fossil fuel sector.
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