Time for funds committed to sustainability to engage with EU rules

Europe’s biggest pension funds are failing to engage actively with emerging EU level sustainable finance policy, providing those reluctant to transform their investments and business models with greater influence, according to new research by climate think tank InfluenceMap.

The report identifies Norway’s Norges Bank Investment Management, the Dutch fund Pensioenfonds Metaal en Techniek (PMT), and in the UK, Universities Superannuation Scheme (USS) and BT Pension Scheme (BTPS), and trade body the Pensions and Lifetime Savings Association (PLSA) as among the most positive advocates for ambitious sustainable finance policies.

However, some trade bodies with a higher proportion of real economy corporate board members have a more negative approach to engagement.

Germany’s corporate pension association Aba (members include BASF, Bayer, Bosch and Volkswagen) and Belgium’s PensioPlus (ExxonMobil, Unilever, Nokia, Shell) have actively opposed ambitious sustainable finance policies.

InfluenceMap senior analyst, Paula Castro, said: “While some of Europe’s pension funds are clearly trying to take the threat of climate change seriously, most are not actively engaged on emerging sustainable finance policy.

“It means that industry associations – which often take a more negative approach to policy – are the loudest voices at an EU level. “Given the enormous amounts of money invested in pension funds, these organisations have significant influence when it comes to pulling levers to address the climate crisis.”