The largest pension fund in the European Union is pulling out of investments in the oil, gas and coal sectors.

The ABP fund announced on Tuesday that it would part with its investments in fossil fuel manufacturers.

They have a volume of 15 billion euros and make up about 3 percent of fixed assets.

ABP is one of the largest pension funds in the world, the largest in the EU and the most important in the Netherlands.

There he organizes company pensions for employees in the public service and in education;

Every sixth of the 17 million inhabitants receives money from ABP as a current or future pensioner.

In the fifth largest economy in the EU, company pensions are the second major pillar of old-age provision alongside the basic pension.

Klaus Max Smolka

Editor in business.

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Philipp Krohn

Editor in business, responsible for “People and Business”.

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The announcement comes in the week before the COP26 summit of the United Nations in Glasgow and marks a turnaround: in June ABP had argued that an exit from fossil fuel plants would not be a solution to the climate problem.

According to recently published climate reports such as that of the Intergovernmental Panel on Climate Change (IPCC), the board of directors has decided to withdraw.

The investment item will be gradually reduced, the majority expected to be sold in the first quarter of 2023.

"Many participants and employers have wanted us to stop investing in fossil fuels for a long time," says the press release.

Investments in renewable energy - currently around 4 billion euros - are to be expanded where possible.

According to the information, the margins should not suffer: "We expect that this decision will not have a negative impact on the long-term return and your company pension."

The divestment trend began six years ago

This is continuing a divestment trend that the Norwegian pension fund began six years ago, which, ironically, is fed by income from the local oil industry. In June 2015, he announced that he would be withdrawing from investments in which either more than 30 percent of sales or the electricity required is generated using coal. At that time, that corresponded to a volume of 4 billion euros in stocks and bonds. Since then, the oil fund, owned by the citizens of Norway, has expanded its divestment activities.

Others followed suit with divestments to a comparable extent.

Europe's largest insurer Allianz announced its partial withdrawal from coal in November of the same year, followed two years later by Axa, number two on the continent.

The next largest corporations Generali and Munich Re announced their partial withdrawal from coal investments the following year.

Climate activists criticize that these steps are too timid.

In addition, banks would continue to be available as financiers for coal projects.

At the latest when energy companies threatened to look for another bank, they also softened their exit plans.