Dutch Pension Fund PFZW Exits Fossil Fuel Investments

In a significant stride towards climate responsibility, the Dutch healthcare workers’ pension fund PFZW has divested nearly all of its investments in fossil fuel companies, including industry giants such as Shell, BP, and TotalEnergies. Citing the absence of a credible climate strategy, PFZW has liquidated shares in 310 companies, totaling an investment of 2.8 billion euros ($256.4 billion), from its substantial 237.8 billion euros asset portfolio.

PFZW’s selective approach retained investments in only seven oil and gas companies, including Neste Oyj, Galp Energia, Cosan, and Worley Ltd, acknowledging their credible transition strategies towards sustainable energy. This decision aligns with PFZW’s 2020 announcement to divest from fossil fuel companies lacking a “convincing and verifiable” strategy to adhere to the Paris Climate Agreement objectives.

PFZW Chair Joanne Kellerman highlighted the fund’s disappointment with the fossil fuel sector’s slow pace in shifting from fossil to renewable energy sources, despite ongoing discussions and some investments in sustainability by the largest players. The fund’s action reflects a growing trend among institutional investors to reassess their investment portfolios in light of climate change risks and commitments to sustainable development goals.

In the wake of divesting from fossil fuels, PFZW has expressed its intention to significantly boost investments in companies actively engaged in the energy transition. This move not only underlines the pension fund’s commitment to supporting environmental sustainability but also sets a precedent for other institutional investors to follow suit in aligning their portfolios with global climate goals.