A pension fund managing more than £200 billion has sold all its shares in BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) as it believes the oil and gas giants are not reducing emissions fast enough.
PFZW, the Dutch pension fund, revealed it sold its £2.4 billion shareholding in some 300 oil and gas companies over the last two years.
“During this period, dialogue with oil and gas companies was significantly intensified to encourage them to produce verifiable transition plans that support the goal of the Paris Climate Agreement,” said PFZW.
“Most of our fossil fuel investments have now been sold off, as these companies have made insufficient steps in the transition to a cleaner energy mix.”
BP and Shell, alongside other energy companies like TotalEnergies, have plans to become net zero carbon emitters by 2050, but also have various short and medium-term decarbonisation targets.
PFZW’s asset management division PGGM will step down from leading climate negotiations with Shell, having represented the views of the £54 trillion investor group Climate Action 100+ since 2022.
In response, Shell said: “We appreciate societal perceptions in the Netherlands, but this decision has no benefit to the climate.
“It will not change actual use of energy and continues to portray an incorrect understanding of the needed changes to today’s energy system.”