Dutch pension fund ABP to sell $ 17.5 billion worth of fossil assets


AMSTERDAM, October 26 (Reuters) – Dutch pension fund ABP, one of the largest in the world, to divest € 15 billion ($ 17.5 billion) of investments in fossil fuel producers here 2023, he announced on Tuesday, citing concerns about global warming.

Following the planned sale, which represents 3% of the fund’s total assets, ABP intends to increase investments in renewable energy to the extent possible, Chairman Corien Wortmann said in a statement.

The decision ahead of COP26 of the United Nations climate conference next week marks a major turning point for the civil servants’ fund, which manages 528 billion euros in assets.

Wortmann had said as recently as June that exiting fossil fuel investments was “not the solution” to global warming, despite pressure from environmental activists and a growing number of fund participants. Read more

Announcing Tuesday’s decision, she cited the concerns of fund participants and their employers.

“The ABP board sees the need and the urgency for a change of course,” she said. “We (separate) from our investments in fossil fuel producers because we do not see enough opportunities for us, as a shareholder, to push for the necessary and significant acceleration of the energy transition in these companies. . “

She said that in the future, the fund will focus on engaging with large consumers of fossil fuels such as power companies, the auto industry and the aircraft industry.

“By using our influence as a shareholder, ABP will encourage companies that use fossil fuels to become more sustainable.”

The fund said it didn’t expect the move to affect its long-term returns.

($ 1 = € 0.8593)

Reporting by Toby Sterling; Editing by David Goodman and Stephen Coates

Our standards: Thomson Reuters Trust Principles.


About Author

Leave A Reply