Dutch pension fund PFZW sells stakes in fossil companies

Stichting Pensioenfonds Zorg en Welzijn (PFZW), the Netherlands’ second largest pension fund, has announced the sale of its stakes in fossil fuel companies. Founded in 1969 and headquartered in Zeist, PFZW manages assets totaling €253.9 billion as of 2020, serving primarily employees in the healthcare and social work sectors. The decision is part of PFZW’s broader strategy to align its investments with environmental, social, and governance (ESG) criteria.

PFZW has committed to gradually exiting its fossil fuel investments by 2025. This move underscores PFZW’s dedication to sustainability and climate action, reflecting a growing trend among institutional investors to divest from industries contributing to climate change. The pension fund’s divestment strategy includes reducing exposure to coal, oil, and gas companies, aiming to foster a more sustainable investment portfolio. PFZW’s decision aligns with its long-term goal of achieving a carbon-neutral portfolio by 2050, a target that includes significant reductions in carbon emissions associated with its investments.

Historically, PFZW has integrated sustainability into its investment policies, emphasizing investments that generate positive social and environmental impact. The fund’s commitment to ESG principles has been evident in its investment choices, which prioritize companies and projects that contribute to sustainable development. PFZW’s divestment from fossil fuels is a logical extension of this philosophy, reinforcing its position as a leader in responsible investing.

The pension fund’s shift away from fossil fuels is also a response to increasing pressure from stakeholders, including fund participants and beneficiaries, who demand greater accountability and action on climate change. By divesting from fossil fuels, PFZW aims to mitigate financial risks associated with the transition to a low-carbon economy, ensuring the long-term sustainability of its investments. This proactive approach is expected to enhance the fund’s resilience and align with global efforts to combat climate change.

The new decision of PFZW to sell its fossil stakes was considered in the research process for our European pension fund list.

Picture source: Unsplash+
Article source: Dutchnews.nl