Fonds de Reserve pour les Retraites, Paris, will exclude tobacco companies and those that derive more than 20% of their revenue from thermal coal extraction from its equity and bond portfolios.
The €37.2 billion ($39.3 billion) pension fund said in a news release that its supervisory board had adopted the proposal by its executive board at a meeting Dec. 1.
Regarding coal, FRR over the past two years has been involved in the issue of energy and ecological transition, committing to a number of international initiatives aimed at reducing the portfolio's greenhouse gas emissions. FRR will exclude companies that derive more than 20% of their revenue from thermal coal, or that generate more than 20% of their electricity, steam or heat production from coal. Those using carbon capture and storage processes or that have announced a commitment and begun to take action in that direction will not be excluded.
FRR executives next year will launch a €5 billion passive equities allocation based on an environmental, social and governance approach, and the approach will also be applied to existing fixed-income allocations, the news release said. Between now and the end of next year, these exclusions will be applied to almost 95% of FRR's assets.
Further details could not be learned by press time. A spokeswoman for FRR could not be reached for comment by press time.
