Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, has sold its stakes in 310 oil and gas companies that it feels do not comply with the Paris Agreement, following a two-year "intensive engagement program."
The exclusion process leaves just seven oil and gas firms in the pension fund's portfolio. PFZW has €237.8 billion ($260.4 billion) in assets.
The value of the divestments was €2.8 billion, with PFZW selling stakes in Shell, BP, TotalEnergies and other companies.
The seven remaining oil and gas firms in the portfolio — Cosan, Galp Energia, Granuul Invest, Neste OYJ, OMV, Raizen and Worley — were described in a PFZW news release as being "convincingly committed" to switching from fossil fuel to low-carbon energy sources.
"The intensive shareholder dialogue over the past two years with the oil and gas sector on climate has made it clear to us that most fossil fuel companies are not prepared to adapt their business models to 'Paris'," Joanne Kellermann, chair of the board of PFZW, said in the release. "The seven companies we will continue to invest in are the only ones that show a switch is possible. At the same time, it is disappointing that there are only seven."
With the completion of this program, PFZW is to now focus its engagement strategy on large fossil fuel consumers, such as power companies and producers of materials with a high carbon footprint.
PFZW is working toward a climate-neutral investment portfolio by 2050. To achieve this, it is first targeting 50% carbon reduction by 2030 in its equities, liquid credit and real estate holdings.
The pension fund also plans to have 15% of its total assets invested in climate solutions by 2030, of which €2 billion will be allocated by PFZW over the next two years to investments in companies with "measurable impact" on the climate and energy transition.
In November 2022, PFZW sold its holdings in 114 fossil fuel companies that it said did not yet have plans to reduce their carbon emissions, at a value of €470 million.
