European Asset Owners: alignment with Paris Agreement 2°C climate target

Posted on 04 July 2017

Many of Europe’s lead investors have cut funding to coal mining in line with the Paris Agreement; however many of them are investing too much in coal power and still lagging behind on renewable power.
The EU's biggest investors are partly aligned with the Paris agreement's climate target of keeping global warming well under 2°C but still invest too much in coal, WWF's analysis shows. Lack of disclosure on climate risk remains an element of concern that will have to be addressed by the upcoming G20 Summit in Hamburg, and by the EU.

WWF’s report - the first of its kind - shows that 29 of Europe’s major asset owners, mainly pension funds, from the Netherlands, Denmark, Sweden, Norway and Finland have already implemented changes to bring their public equity portfolio more in line with the well under 2°C climate goal. Almost all of them have cut funding to coal mining; however many of them are investing too much in coal power and still lagging behind on renewable power.

WWF contacted 80 of Europe’s largest asset owners representing USD 13 trillion (EUR 11.6 tn) in total assets, but only 29, worth USD 2.2 trillion (EUR 1.9 tn) have agreed to disclose their data so far. More efforts will be needed to improve the lack of disclosure of holdings data, in part due to a current lack of regulation requiring so in some countries.