The Netherlands’ largest pension fund has stopped investing in fossil fuels. The pension fund for teachers and civil servants made the move, in part, due to a recent report from the UN’s Intergovernmental Panel of Climate Change (IPCC). ABP will sell its fossil fuel investments in stages, with the majority of investments sold, the pension fund forecasts, by April 2023.
Corien Wortmann, Chairman of the Board at ABP, says: “We’ve been speaking frequently with constituent groups, employers, and scientists. This is the time for us to make this step.” The funds says the decision will not affect long-term returns.
At the end of last year, ABP, which boast 3 million participants, invested 15 billion in fossil fuel producers. The figure is three percent of the pension’s total invested capital.
ABP follows PME as the second large Dutch pension fund divesting from fossil fuels. The pension fund for the metal and technology industries made the move in September 2021.