Greenpeace Luxembourg has raised significant concerns about the environmental sustainability of investments made by the Compensation Fund (FDC), the entity responsible for managing Luxembourg’s pension reserves.
While the FDC has progressively incorporated sustainable investment principles over 15 years – excluding companies linked to human rights violations and environmental harm – the environmental organisation claims these measures fall short of Paris Agreement targets.
An independent analysis commissioned by Greenpeace revealed that €1.3 billion of FDC’s assets remained invested in fossil fuel sectors in 2024, including €174 million specifically allocated to major coal producers.
These coal investments directly contradict climate goals, effectively financing a trajectory toward 2-3°C of global warming, stated Martina Holbach of Greenpeace Luxembourg.
With €30 billion in assets under management, Greenpeace argues the FDC possesses substantial leverage to drive climate-positive investment. The organisation demands immediate divestment from high-carbon industries, full alignment with Paris Agreement objectives, and adoption of more ambitious exclusion criteria.
They emphasise that sustainable investments now demonstrate competitive returns, citing international precedents. Greenpeace contends that proactive climate financing would prove less costly than addressing escalating climate disasters, whose damages may eventually exceed insurance capacities.
