The Danish pension fund P+, which manages about $23 billion in asset, mentioned it’s going to now not spend money on oil and fuel firms which can be increasing manufacturing, becoming a member of a rising checklist of institutional buyers tightening their local weather insurance policies.
Katrine Ehnhuus, a board member of the Copenhagen-based fund, mentioned in a put up on LinkedIn that administrators voted overwhelmingly to undertake the brand new funding standards. The measure was proposed by members and had the assist of the board. P+ hasn’t supplied particulars of divestments associated to the choice.
Pension funds and insurers are revisiting funding insurance policies amid clear indicators that present efforts to handle environmental and local weather dangers are falling brief. Most indicators sign that the planet is on observe to smash by way of the crucial 1.5C international warming threshold, in response to the United Nations’ World Meteorological Group.
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Europe’s largest pension fund, Netherlands-based ABP, mentioned final month that firms failing to handle local weather change are “now not appropriate” to spend money on, whereas Norway’s largest pensions’ supervisor, KLP, mentioned in December it was divesting from and excluding numerous Gulf-based firms as a consequence of each human rights and local weather issues.
Assembly the Paris Settlement can’t be achieved if fossil gasoline manufacturing continues to increase, Ehnhuus mentioned in her put up. With a vote in favor of tighter funding standards, members of the Danish pension fund indicated they’re prepared to take the monetary penalties so as to restrict local weather change, she mentioned.
