Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, sold €303 million ($323 million) in equity and corporate bond investments in energy companies for falling behind on Paris Agreement-related objectives, it said Tuesday.
Among the recently sold stock and bonds of 78 fossil energy companies were Dana Gas, Diamondback Energy, Tourmaline Oil Corp., and Vivo Energy.
PFZW said the latest divestments comprise companies that had a carbon reduction target in place, but had not explicitly committed to the objectives of the Paris Agreement as is required by the pension fund's policy.
The move follows divestments last year from 114 fossil fuel producers that had no carbon-reduction targets in place, PFZW said.
"The invasion of Ukraine and the sharp rise in energy prices have made a rapid energy transition more important than ever. We will continue to pursue last year's policy of putting pressure on the fossil energy sector," Joanne Kellermann, chairwoman of the board of trustees of PFZW, said in a news release Tuesday.
"This goes beyond selling investments in companies, since that in itself will not help to resolve the climate issue. We are therefore also using our influence as shareholder to push the fossil energy sector to transition more quickly to low carbon alternatives," she added.
PFZW still has about 94 fossil fuel companies in its portfolio. The investments amount to about €2.7 billion.
Companies are expected to come up with a viable energy transition strategy by the end of this year, marking the final stage of the fund's two-year engagement program. Company strategies should set short-term and medium-term targets and include information about carbon emissions.
Companies that will fail to produce strategies by the end of the year will also be sold, PFZW said in the release.
PFZW has €217.6 billion in assets.
The spokesman said that the assets were reinvested in stocks and bonds of companies that are considered frontrunners in the energy transition in sectors other than gas and oil.