Group of Dutch investors urges oil and gas companies to take climate action

Today a group of institutional investors issues a joint statement urging oil and gas companies to take climate action. The group consists of Achmea Investment Management, ACTIAM, Aegon, Van Lanschot Kempen, MN Services (for PMT), NN Investment Partners, PGGM Investments and Blue Sky Group, with combined assets under management of EUR 1.48 trillion.

In their statement they list three objectives and eight corresponding actions they expect oil & gas companies to meet before 2024. These objectives and actions are in line with the CA100+ Net Zero Company Benchmark, the Transition Pathway Initiative (TPI) framework, International Energy Agency (IEA) and the IIGCC Net Zero Standard for Oil and Gas, all of which receive broad support from oil & gas companies and investors. Furthermore, they call on fellow investors to use their voting rights to accelerate the pace of the transition in all carbon intensive companies.

Investor statement

April, 1st 2022, The Netherlands - The world is now over two years into the critical decade in the fight against climate change. We (Achmea Investment Management, ACTIAM, Aegon, Van Lanschot Kempen, MN Services (for PMT), NN Investment Partners, Blue Sky Group and PGGM Investments) are a group of Dutch institutional investors with a combined assets under management of EUR 1.48 trillion. We support the objectives of the investor collaboration network of the Institutional Investors Group on Climate Change (IIGCC) and the Climate Action 100+ (CA100+) engagement initiative. 

We want to underscore our unequivocal commitment to the Paris Agreement and limiting global warming to 1.5°C and expect all companies and investors worldwide to do the same. Although Paris-alignment is important for all companies, we believe the oil and gas sector in particular plays an essential role in the transition and we therefore urge oil and gas companies and their investors to be at the forefront of the transition. Avoiding climate disaster and meeting the Paris Agreement goals is essential in safeguarding the long-term value of the capital that we manage on behalf of our clients.

Since 2019, CA100+ and the IIGCC have, respectively, developed the Net Zero Company Benchmark and the Net Zero Standard for Oil and Gas. With this statement we want to highlight the importance that oil and gas companies meet all goals in both guidelines. However, taking into the current state of urgency, we expect oil and gas companies to achieve the following three objectives before 2024. 

1.    Set short and medium-term carbon intensity and absolute reduction targets aligned with 1.5°C warming, which include scopes 1-3. 
2.    Develop a decarbonization strategy that support these targets.
3.    Demonstrate how planned capital allocation supports the decarbonization strategy.

Finally, we call on our fellow investors to use their voting rights to accelerate the pace of the transition in all carbon intensive companies. We believe doing so is an essential part of investors’ stewardship duties and commitment to the Paris Agreement 1.5°C warming scenario. We can drive change if we are able to reach a common understanding on how to use our votes to encourage Paris alignment. Thus, we call on institutional investors to:

1.    Take a critical approach to evaluating a company’s climate transition plan and ensure voting guidelines are aligned. 
2.    Only vote in favor of a company’s climate transition plan if it is aligned with the Paris Agreement, which should at least address the three aforementioned objectives. 
3.    Vote in favor of shareholder resolutions that encourage progress towards the Paris Agreement 1.5°C warming scenario. 
4.    Consider using escalation actions if objectives are not met, such as voting against the re-election of directors or voting against remuneration schemes that do not link executive pay to performance on climate targets.

We call on all parties with whom this approach resonates to endorse this statement and get in contact with MN and PGGM. We will convene all like-minded investors to discuss how to advance the energy transition in the summer of 2022.