Dutch pension funds lack support for climate resolutions
March 16, 2023
Dutch pension funds are failing to provide clear support for voting on climate resolutions at oil and gas companies and banks, according to two Dutch NGOs.
The study of 12 Dutch pension funds’ voting behaviour revealed 11 are sending ‘mixed’ or ‘weak’ climate signals in their voting.
According to Groen Pensioen and BothEnds, pension funds must vote for more than 90% of climate resolutions to be categorised as ‘pro-climate’.
PME was the only pension fund to vote against 100% of resolutions and gas companies and banks that lack climate action.
Whereas most pension funds only voted between 58% and 89% in favour of the climate.
The NGOs stated that as a theme climate change lacked enough support from Dutch pension funds to influence companies into changing their behaviour.
The study also examined whether pension funds vote differently on climate resolutions for banks compared to oil and gas companies.
Only five pension funds, including PME, BPL, PF Vevoer, PNO Media, and SPH scored 100% on their climate votes for bank resolutions.
Therefore, the NGOs have urged pension funds to increase pressure on banks to adopt investment policies that stop financing new fossil fuel projects.
The report said: “As financing fossil fuels is not a core activity of banks, we believe that engagement if done with clear demands and voting accordingly, could potentially influence banks to adopt policies to phase out fossil fuel financing. We hope that pension funds will increase their pressure in 2023.”
BpfBouw scored 100% on its votes against oil and gas companies, whereas other companies failed to give “clear, consistent” support for climate resolutions.
However, many Dutch pension funds have defended their votes against climate resolutions as they are often “too prescriptive” or not well-written enough.
In the report, PZFW said it voted against some climate resolutions because they “would not have the desired positive impact on the world and/or jeopardize their long-term financial performance.”
The report follows increasing pressure on oil and gas companies to cut greenhouse gas emissions.
In March, climate activist group Follow This filed shareholder resolutions against the world’s four largest oil and gas companies urging them to set clear targets to reduce scope 3 emissions.
Last Updated: 16 March 2023