Investments in fossil oil and gas sold
The Hague, 3 September 2021 – PME, the Dutch pension fund for the metal sector and the technological industry, is pressing ahead with its climate policy and is strengthening its commitment to the energy transition. Over the last months, PME has divested from the fossil oil and gas sector. This step will not affect the expected total return of the investments.
Our investment manager explains
In this video Daan Spaargaren explains why PME chooses to invest in the energy transition
The call to take action on climate change is clear. Survey results indicate that the participants, pensioners and employers of PME recognize the importance of a stronger climate policy. The IPCC is sending a clear signal which cannot be ignored. An increasing number of countries and companies are setting ambitious climate goals. Judges are interpreting treaties, laws and agreements strictly. Court decisions in the Urgenda-case against the Dutch state and the case of Milieudefensie (Friends of the Earth Netherlands) against Shell show that international climate agreements are not without obligation. Dutch courts ruled that these agreements must be adhered to in deed, and not just in word.
Eric Uijen, Chairman of the Executive Board of PME: “Everything points to the fact that the worldwide emissions of CO2 need to be drastically reduced in the next ten years. The impact of climate change is unfolding now, before our very eyes. That is why we are going to invest more in sectors that enable the energy transition, such as grid management and energy storage.” In doing so, PME is looking explicitly at the financial implications e for its participants and pensioners. Uijen adds: “This step will not impact their pensions.. Our ambitious climate policy and a good pension go hand in hand.”
Marcel Andringa, Executive Board member of PME: “As a result of our climate policy, the share of fossil oil and gas companies within our investment portfolio had already shrunk considerably. After unsuccessful dialogues we already divested from a number of individual companies. Now we have sold all of our interests in fossil oil and gas companies.” Andringa stresses that the divestment has no significant impact on the risk profile of the investment portfolio. “On the contrary, climate change is a real risk within our investment portfolio; with this step we are able to manage that risk even better.”
PME will continue its engagement programme on climate change, although the programme will get a different focus. Instead of fossil oil and gas companies, PME will now target large consumers of fossil energy, like utility companies. They are capable of making a shift in their energy mix and make the move towards a clean energy system.