“As dirty and dangerous as ever”, is how Greenpeace has described investments made by the Luxembourg Pension Fund in 2022. According to a respective analysis, the Compensation Fund (FDC) granted “more than €3 billion” to “industries that harm the climate and the environment” last year. This is a “considerable portion” of the €26 billion set aside for pensions.
According to the report, €888 million were directed to “the most climate-damaging companies in the world”. The increase has also benefited the “companies most responsible for deforestation”. At the same time, investments in nuclear power fell by 13% to €691 million.
“The FDC’s responsible investor policy, which is based in particular on insufficient sustainability labels and an inconsistent exclusion list, does not guarantee that the pension fund is actually investing in a sustainable manner. Its main purpose is to engage in greenwashing, thereby helping to mislead Luxembourg’s society”, says Martina Holbach, Sustainable Finance Campaigner for Greenpeace Luxembourg.
“Greenpeace has been able to identify companies that do not comply with international human rights standards”, further adds the organisation. Particularly affected are businesses in the automotive, information technology, and food sectors.
This is not the first time that the FDC has been singled out for its polluting investments. In early 2023, coalition MPs co-signed a motion urging the Fund to review its investment policies. However, Greenpeace says it still has “strong doubts” that the investment plan for the period 2023-2027 will take the desired “green” turn.
