Dutch media outlet NOS reported that a growing number of pension funds, from employees in the construction industry, the banking sector, and even Shell oil companies, are discussing whether pensions should still go to the mineral energy sector.
Increasingly, these funds are taking action. According to the NOS survey, the top 10 funds account for about two-thirds of total Dutch pensions and have withdrawn around €15 billion worth of investments in recent years, such as those involving the sell-off of shares in companies such as Shell and BP.
For many years, the general practice of Dutch pension funds has been to try to change investments in oil and gas companies from within by advocating for sustainability at shareholders' meetings.
Some pension funds are abandoning this strategy, and they are disappointed with the company's sustainability plans. ABP, the largest Dutch fund, the largest Dutch fund, stopped investing in fossil fuels altogether last year. This week, the second Dutch pension fund, Zorg en Welzijn in the care sector, which has divested almost all of its investments in the fossil fuel sector, is also following suit.
David van As, manager of the Construction Industry Pension Fund, said: "They are sending a serious signal from the pension sector to the companies concerned that they are genuinely committed to sustainability. It's also instructive for us. ”
The pension fund sold 800 million euros worth of invested shares last year and still has about 700 million euros invested in oil and gas companies. "In line with our policy, we will also conduct a serious evaluation of these companies this year. ”
Transport industry pension funds have blacklisted hundreds of companies, including Shell.
Explanation of banking funds
ING's pension fund has also divested from many companies in the mineral energy sector and has sold at least €56 million in investments. If more than 10% of a company's turnover comes from oil, it no longer invests in that company. This is noteworthy because the bank itself has chosen to continue working with oil companies for the time being, and there is a pending lawsuit between Dutch environmental groups Milieudefensie and ING over the issue.
The bank said this does not contradict pension funds selling their oil and gas assets in large quantities. In its response, the bank pointed out the difference between an investment or financing company and that it is easier to sell an investment than to terminate a loan. In addition, financing allows banks to be more specific about which projects to support and which not to support.
ABN AMRO Pension Fund, the eleventh largest fund in the Netherlands, also sells many investments in oil and gas companies. Only 0.05% of the bank's pension is invested in the oil and gas sector.
The contradiction between energy companies and pension funds
Oil company Shell's pension fund also wants to invest its pension money in companies that make the world more sustainable. A spokesperson said: "We actively encourage the companies we invest in to become more sustainable. If the dialogue proves impossible, the fund may decide to exclude these companies or sell their shares. ”
According to the pension fund, this has already happened in three cases, although the Shell pension fund would not say which companies were involved.
Shell said it regretted the decision of pension funds such as Zorg en Welzijn in the Netherlands to withdraw their funds, "This decision does not do any good for the climate, does not change actual energy use, and continues to misunderstand the changes required by the current energy system." ”
The company hopes that pension funds such as healthcare and benefits will return as investors.