Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, has adopted an absolute 50% carbon reduction target, a spokeswoman confirmed.
PFZW has €217.6 billion ($239.7 billion) in assets and is managed by in-house PGGM.
In February, PFZW sold €303 million in equity and corporate bond investments in energy companies that it said were falling behind on Paris Agreement-related objectives. The companies had a carbon reduction target in place but had not explicitly committed to the objectives. The move followed divestments in 2022 from 114 fossil fuel producers with no carbon-reduction targets.
The pension fund has told the roughly 94 fossil fuel companies it still holds that they have until 2024 to do more to address global warming.
Companies are expected to come up with a viable energy transition strategy by the end of 2023 with short-term and medium-term targets and information about carbon emissions. Companies failing to produce strategies by the end of the year will also be sold, PFZW said in February.