SNS Reaal pension fund has excluded fossil fuel producers from its emerging markets equity portfolio. In an overhaul of the €418mn portfolio, the pension fund has changed its existing managers from Schroders, Vanguard, and Robeco, to JP Morgan and Goldman Sachs. ESG strategies from both managers will be put into place and both strategies bar fossil fuel producers.
The SNS Reaal pension fund has excluded fossil fuel producers from its €418mn emerging markets equity portfolio, adopting ESG strategies from JP Morgan and Goldman Sachs. Around half of its €900mn equity portfolio is invested in emerging markets.
SNS Reaal will continue to invest in fossil fuels in developed markets. Sybrand Nauta, Director of SNS Reaal: “We do believe in engagement with energy firms in developed countries, but we do not see realistic opportunities to accomplish anything with engagement in emerging markets. Hence, we decided to exclude fossil fuels from our emerging markets universe entirely.”