Dutch Pension Fund That Withdrew KEPCO Investment Says "May Reconsider Decision If There Is Willingness to Change"

APG Declares End of Stock and Bond Investments and Asset Divestment from Fossil Fuel Producers by Late October
APG's Assets Under Management Approximately 821 Trillion Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The Netherlands' public pension fund manager APG has stated that it may reconsider its decision to divest from Korea Electric Power Corporation (KEPCO) if the company pursues a decarbonization policy.

On the 7th, Claudia Cruz, Head of Global Responsible Investment and Governance at APG, said at the 26th United Nations Climate Change Conference of the Parties (COP26) held in Glasgow, UK, “We sold all shares to avoid investing in eight companies worldwide, including KEPCO, which continued to build new coal power plants last year. However, if they show a strong will to change, we may reconsider our decision,” on the 2nd (local time).

She added, “This action follows the decision by ABP, the Dutch pension fund client of APG, to eliminate coal and oil sands from its portfolio,” and said, “At the end of last month, ABP declared that it would stop investing in stocks and bonds of fossil fuel producers, including coal, oil, and gas, and would divest those assets.”

APG is an asset management company established separately from ABP, managing assets worth approximately 600 billion euros (about 821 trillion KRW). APG, which divested from eight companies including KEPCO last year, also expressed concerns to the Korean government in August this year regarding decisions on private coal power plants.

Last month, APG sent a letter to the Carbon Neutrality Committee requesting a clear decarbonization pathway aligned with the Paris Agreement. Other foreign pension funds managing a total of 5.8 trillion euros in assets also signed the letter. The Paris Agreement is a treaty adopted in 2015 by 195 countries to gradually reduce greenhouse gas emissions.

According to major foreign media reports, the assets to be divested due to APG’s actions exceed 15 billion euros. Cruz stated, “APG and its parent company ABP have a strong commitment to being responsible investors in the long term,” and added, “To achieve this, we believe it is necessary to actively engage not only with companies but also with governments worldwide.”

She also emphasized, “Dutch citizens, who are pension plan members, strongly supported the decision to divest from coal power companies,” and said, “APG must also announce new carbon neutrality goals and implementation plans for climate response next year in accordance with the ‘Dutch Climate Agreement.’”

This content was produced with the assistance of AI translation services.