The new investment strategy of the Compensation Fund (FDC) of the pension insurance does not do enough for climate or human rights protection, conclude both NGOs in their joint press release. They further stress that the strategy, which will be debated in the Chamber of Deputies on Thursday, needs to be thoroughly revised.
Although Greenpeace spokesperson Martina Holbach acknowledges that the new strategy is an improvement in comparison to the current one, she laments that the Paris Accords have not been firmly retained: “They are not present. And we don’t see any criteria on how to exclude climate-damaging companies.”
ASTM is similarly critical of the lack of emphasis put on companies violating human rights. According to the NGO, the Compensation Fund is not clear enough on how to exclude companies.
At the beginning of January, employees’ representatives on the FDC board of administrations voted against the new strategy for not excluding the possibility of investing into nuclear energy. In conversation with RTL, Minister of Social Security Claude Haagen argued that the current legislation does not allow for entire sectors to be excluded.
According to Martin Granzow from Nextra, which carried out the analysis of the strategy for Greenpeace and ASTM, does not share this interpretation of the legal text: “One has to invest in different asset classes and in different sectors. But, it does not say that one has to invest in all sectors.”
A legal amendment is therefore necessary to make the investment strategy more sustainable, say both NGOs. Holbach does however not see any willingness on behalf of the Fund: “The FDC clearly has no intention of excluding sectors or critical activities.”
Granzow shows himself equally puzzled about the unwillingness to change course, particularly since he does not see it as a threat to the profitability of the fund: “This means that the FDC regards sustainability as problematic. We see the opposite argumentation. You can eliminate risks from your portfolio by taking sustainability into account and at the same time still seize opportunities for returns.”
Holbach hopes that the Chamber will send the right signals to Minister Haagen on Thursday. “Don’t sign, but improve”, she emphasised. In light of the upcoming debate, both NGOs are calling for a protest outside of the Chamber at 1.30pm on Thursday.
The Compensation Fund, Minister Haagen, and the respective Chamber commission all previously declined an invitation to meet with the NGOS.
