Direct risks for portfolios remain underexposed
Research of VBDO together with AXA IM among 38 institutional investors shows:
- 18% have quantitative target reduction of CO2 emissions
- 26% exclude polluting companies
- More focus on combating climate problem than relief consequences
Fewer than half of Dutch pension funds (42%) have formulated policy on climate change. However, a majority of the funds (61%) indicate that they speak about climate change with the companies invested in; an almost equal percentage (58%) performs measurements on the CO2 emissions of a part of the portfolio.
This appears to be a survey among 38 Dutch pension funds carried out by the Association of Investors for Sustainable Development (VBDO) in collaboration with asset manager AXA Investment Managers.
Almost one in five funds (18%) have quantitative targets to reduce the climate effects of their own portfolio. More than a quarter of the funds (26%) say they exclude companies as an investment if they do not meet certain climate criteria.
The climate policy is mainly aimed at preventing further damage. Almost one in four pension funds (24%) has set aside money to invest in companies that contribute to combating the climate problem. 5% of the respondents have a specific investment budget for shares in companies that focus on adapting to higher temperatures.
Adaptation to climate change also receives significantly less attention in the overall policy of pension funds than combating it: a minority of 21% are involved. Since an increase in temperature is unavoidable, (institutional) investors need to map out how companies prepare themselves for this, according to the VBDO in the Dutch Pension Funds and Climate Change report: Now is the time.
Dutch Pension Funds and Climate Change: Now is the time.