Asset managers are leaving coal

To date, the world’s largest asset managers / owners with assets under management (AuM) greater than US$50 billion have been slow in announcing their coal exclusion divestment across the whole portfolio.

But change is coming. Global capital flight pressures are building, rapidly. Once big financial players start moving away from coal and fossil fuels, others will quickly follow. The rush for the exit is likely to become a stampede.

631 institutional investors with more than $37 trillion in assets are urging governments to phase out thermal coal power worldwide

And also put a price on carbon, end subsidies for fossil fuels, and strengthen nationally-determined contributions

The Investor Agenda

Climate change will be the biggest wild card for investors, involving the biggest challenge not only for our industry but for human life itself

State Street chief Cyrus Taraporevala

Cutting carbon emissions can deliver a long-term dividend to the environment and in most cases an improved financial performance

Clean Energy Finance Corporation (CEFC) chief executive Ian Learmonth

Climate change is a rapidly escalating investment issue

Brunel CIO Mark Mansley

The trend in financial markets is that you see fewer and fewer investors still willing to fund fossil fuels

Eskom CEO Phakamani Hadebe

There is a rising global demand for action on climate change

Storebrand Chief Executive Officer, Odd Arild Grefstad 

Anyone who's looking beyond a 10-year view on coal is gambling very significantly

Jim Barry, Global Head, BlackRock’s infrastructure investment group

By going coal free, we are sending a strong signal on the urgency of shifting from fossil to renewable energy

KLPs CEO Sverre Thornes

It is important to seize the opportunity to deploy capital to support climate change solutions

State Street chief Cyrus Taraporevala

The evidence on climate risk is compelling investors to reassess core assumptions about modern finance

Laurence D. Fink, chief executive of BlackRock

Coal will be phased out, oil use is set to peak, renewable energy generation is rising

Daniel Morris, senior investment strategist at BNP Paribas

Both public and private investors are increasingly averse toward financing new coal-fired power plants, given the risk of stranded assets and in light of existing international commitments to reduce emissions

Armida Salsiah Alisjahbana, UN under secretary-general and executive secretary of United Nations Economic and Social Commission

Achieving net zero will require a whole economy transition - every company, every bank, every insurer and investor will have to adjust their business models

Mark Carney, Governor of the Bank of England

Coupled with poor financial returns, climate change concerns have the industry dramatically out of favor at the moment, in most every corner of the investing and political world

Bobby Tudor, founder of investment bank Tudor, Pickering, Holt & Co.

Global Asset Manager / OwnerCountry and/or HeadquartersFinance RestrictionsRestrictions IntroducedLatest
ABP / APGNetherlandsBy the first quarter of 2023, ABP will divest from all fossil fuel producers in phases; the majority of which is expected to be sold.
By 2025, will have reduced the carbon footprint of its asset portfolio by 40% from 2015 levels.
AlectaSwedenNo investments in mining companies with more than 10% turnover from thermal coal and energy companies with over 30% of their turnover from energy production based on thermal coal.2019
AmundiFranceExclusion of companies generating more than 25% of revenues from coal mining extraction or with annual coal extraction >100 Mt without intention to reduce.
Exclusion of companies with revenue in coal mining extraction and coal power generation >50% of their revenue.
Exclusion of coal power generation and coal mining extraction companies with a threshold between 25% and 50% with no intention to reduce the % of revenue from coal power generation or coal mining extraction.
Asset Management One JapanHas set 30 trillion-yen worth of AUM (53% of its AUM, as of end of March 2021) as its 2030 interim goal, on the path to achieving net zero greenhouse gas emissions by 2050 or earlier.2021-09
ATP GroupDenmarkWill stop putting money in external funds that hold fossil fuel investments2020-02
Aware Super
(was FirstState)
AustraliaBy July 2021, had completely divested from thermal coal.
By 2023, a 30% emissions-reduction target across its investment portfolio, and a 45% cut by 2030.
BlackRockU.S.Will cut companies that derive a quarter or more of their profits from thermal coal from its actively managed portfolios.2020-01
Caisse de dépôt et placement du Québec (CDPQ)CanadaBy 2030, no longer financing any new thermal coal projects in addition to gradually phasing most coal-powered assets in industrialized countries out of our portfolio.
By 2040, eliminating them fully worldwide.
Caisse des Dépôts et Consignations (CDC)FranceWill not invest in listed equity and bonds of companies whose activity’s exposure to thermal coal exceeds 10% of the turnover.
Committed not to finance new coal-based energy production capacities (greenfield) on its equity investments and its credit activities in territorial projects.
Crédit Mutuel Asset ManagementFranceBy 2030, completely removing funding from coal energy. Worldwide ban on new coal mines and new coal plants as well as a corporate ban for new coal pure businesses. 2020-02
Deka InvestmentGermanyFrom May 1, 2020, its' actively managed mutual funds will no longer be allowed to invest in companies that generate more than 30% of their revenue from coal mining or more than 40% from coal-based electricity generation.2020-04
Fidelity InternationalBermudaBy 2040, will phase out its exposure to thermal coal.
By 2050, achieving net-zero greenhouse gas emissions.
Första AP-fonden (AP1); Fourth Swedish National Pension Fund (Fjärde AP-fonden AP4); and Sjunde AP-fonden (AP7)SwedenAs of March 2020, AP1 is divesting all fossil fuel companies. AP4 divested more than 20 thermal coal
companies to reduce climate risk (using a threshold of 20% of revenues). AP7 has a climate policy of
active engagement including pursuing shareholder resolutions to enact change.
Government Pension
Fund Global (GPFG)
NorwayHas progressively tightened its coal exclusion criteria, including divesting 71 coal companies to-date and reduced its investments in oil and gas20152019-06
Groupama Asset ManagementFrance2019
HESTAAustraliaBy 2030, reduce absolute carbon emissions by 33% across its investment portfolio, and 100% by 2050.2020-06
IFM InvestorsAustraliaBy 2030, will make no new investments in any infrastructure asset that garners more than 20% of its revenue from thermal coal, and will exit thermal coal-reliant assets.2021-09
KLPNorwaySubstantially ceased coal insurance and divested coal assets.2019-05
Legal & General Investment Management Limited (LGIM)UKDivestment only applies to LGIM’s Future World funds.2019-06
LGT GroupLiechtensteinExcludes companies that produce coal or generate energy from coal to support the achievement of temperature targets set out in the Paris Agreement.2019
M&GUKBy 2050, net zero carbon emissions across all investment portfolios.
Will exclude companies which cannot commit to a complete phase out of coal by 2030 in developed countries and 2040 in emerging markets
Macquarie Group, including Macquarie Asset Management (which Macquarie Infrastructure and Real Assets (MIRA) belongs to) AustraliaBy 2040, global net zero emissions (MAM).
By 2050, global net zero emissions (MGroup).
MGroup exiting coal by 2024.
National Pension Service (NPS)South KoreaImplementing a strategy restricting investment in coal mining and power generation industries.2021-05
New York City Employees' Retirement SystemU.S.Divested an estimated $4b from securities related to fossil fuel companies2021-01
New York State Common Retirement FundU.S.By 2040, net zero greenhouse gas emissions 2020-12
Pensioenfonds van de Metalektro (PME)NetherlandsHas sold all its investments in fossil fuels2021-09
Pensioenfonds Zorg en Welzijn (PFZW)NetherlandsFrom 2020, will be phasing out investments in coal and oil extracted from tar sands.2015-112020-08
Pension Insurance Corporation (PIC)UKBy 2025, no new purchases in companies that derive more than 10% of turnover from coal extraction or burning, or from Tar Sands. 2021-07
Pictet Group SwitzerlandBy December 2020, will have eliminated any exposure to companies carrying out activities related to the production and extraction of fossil fuels2020-02
(owned by ORIX Europe, a subsidiary of ORIX Corporation)
JapanDivested from mining companies and power producers that generate > 10% of revenue from thermal coal2020-042020-09
Storebrand ASANorwayBy 2026, total exit from coal, and carbon neutral by 2050.20132019-12
Union InvestmentGermanyBy 2025, will have ended investment in
United Nations Joint Staff Pension Fund (UNJSPF)U.S.By end 2020, will divest from investments in publicly traded companies in the coal energy sector 2020-08

Note: IEEFA will continue to monitor announcements and will add or delete asset managers pending implementation of said announcements.

Exclusions: Significant asset managers / owners are restricted from this tally if they have AUM<US$50billion, and/or the institution’s announcement has not been followed up with public disclosure, and/or the restrictions are selectively limited.