Dutch pension fund ABP aims for climate-neutral portfolio by 2050

On the 02/03/20 at 1:45PM


Tuba Raqshan

Dutch pension fund ABP will phase out investments in coalmines and tar sands, and reduce its equity portfolio’s CO² emissions by 40%, under its new sustainability policy.

ABP, which has €465bn of assets under management, has vowed that their portfolio is climate neutral by 2050 – with a policy update in 2022. In the next ten years, the institutional investor will no longer be invested in coal for electricity producers (in OECD countries) while investments in coalmines and tar sands will be phased out.

The carbon dioxide (CO²) emissions in its equity portfolio would be reduced by 40% (compared to its 2015 targets). In addition, €15bn would be invested in sustainable and affordable energy with 20% of the assets earmarked for investments in projects driven by Sustainable Development Goals (SDGs).

Corien Wortmann, CEO of ABP, stressed that climate change and transition to clean energy would be key focus areas for the pension funds, with attention to transitions on economical use of natural resources and digitalisation. “In addition to climate goals, we will invest more in companies that work on the reuse of raw materials and responsible food production and in companies that are looking for solutions to combat climate change and resource scarcity through digitisation,” said Wortmann, adding that these are new, unexplored areas where progress must be made.

ABP, whose Dutch Energy Transition Fund invests in companies and start-ups committed to transition to sustainable energy in the Netherlands, will determine additional criteria these firms should meet to be included in the investment portfolio.

The Dutch pension fund pointed out that since 2019, ABP does not invest in tobacco companies and those firms involved in production of nuclear weapons' components.

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