PME chooses to halve absolute CO2 emissions by 2030
PME is one of the first major Dutch pension funds committed to absolute CO2 reduction. By 2030, CO2 emissions from equity and corporate bonds must be at least halved compared to 2019. PME has also formulated reduction targets for the investment categories property, infrastructure and private equity.
PME has endorsed the Financial Sector's Climate Commitment. The action plans it presented reflect the fund's measures to comply with the Paris Agreement and the Dutch Climate Agreement.
Eric Uijen, chairman of the executive board of PME: "In Europe, we have already reached the two degrees of global warming. And worldwide we are also approaching the 1.5 degrees agreed in Paris. This means we are faced with a huge challenge. We have decided to go for an absolute CO2 reduction. The companies in our investment portfolio must simply emit fewer kilograms of CO2. We deliberately do not opt for a relative target, as we don't want exchange rate rises to impact when we reach our CO2 targets."
PME goes to net zero CO2 emissions by 2050. The fund is working towards this target along a path consistent with no more than 1.5 degrees of global warming. This involves an average CO2 reduction of at least 7 per cent a year. The climate plan is a follow-up to earlier steps taken by the fund, among which the exclusion of primary coal production in 2018 and oil and gas production in 2021. The 1.2 billion euro this freed up is invested in the sustainable energy transition.
PME has chosen the five investment categories that have the most impact. By 2030, CO2 emissions from listed equity and corporate bonds must at least be halved compared to 2019. Emissions for property must be 40 per cent lower per square metre in 2030 compared to 2020. And by 2040 at the latest, all infrastructure investments will be in line with the Paris Agreement, as will investments in private equity.
Eric Uijen: "Fighting climate change is not something we do only because we care about the environment. We are investing for the long term and have commitments that extend far beyond the crucial climate year 2050. Good returns can only be achieved in a world that is not on fire. In a world that is not ravaged by floods and droughts. Our climate commitment helps us to protect future returns and create a liveable world for participants who retire. It's as simple as that."
Read the climate plan (pdf) (in Dutch)