PFZW, the Netherlands’ €277.5 billion healthcare pension fund, said that, starting in 2024, it will only invest in fossil fuel companies that demonstrate a “convincing and verifiable” strategy for climate transition in accordance with the 1.5°C goal set by the Paris climate accord. The fund is working towards having a climate-neutral portfolio by 2050.  

The divestment from fossil fuel companies that do not meet the Paris accord will be staggered, beginning with operations that do not currently have reduction targets for GHG emissions. PFZW will sell investments in companies failing to clearly commit to the 1.5°C goal by the end of 2022 in 2023.  

Joanne Kellermann, chair of PFZW, said, regarding climate change, that “we must bring investments in line with what ‘Paris’ demands: limit global warming to 1.5°C”. If fossil fuel companies embark on a climate transition strategy, she said: “PFZW, as a committed and critical shareholder, will continue to encourage these companies to fulfil their role in society: actively contributing to a climate-neutral world by 2050. This new step is in line with our fund’s long history of sustainable investment and the values of our participants.”