PGGM statement on tar sand investments

On behalf of our client pension fund PFZW we are divesting stakes in energy companies with a relatively large carbon footprint. We agree with the claim of Greenpeace that companies in the tar sand sector have a relatively big CO2 footprint.

It is the goal of PFZW to halve the carbon footprint of its listed equity portfolio over a four year period ending in 2020. Since 2016 a reduction of 28 percent has already been realized. This program is on schedule.

The carbon footprint reduction program is part of a broader PFZW energy transition policy. PFZW has already realized EUR 6 bn. of direct green energy investments. Furthermore, it has a EUR 3 bn. portfolio of investments in traditional energy companies of which the carbon footprint is being reduced by 50 percent.

Greenpeace is currently demanding from PFZW to disclose its divestments from companies in the tar sand sector. We understand their request but we will not honor it because it is market sensitive information and can potentially damage our position as a global investor. This would harm the interests of the PFZW beneficiaries. PFZW however does disclose all of its investments annually as per the end of the preceding calendar year.

PFZW and PGGM are happy to continue the dialogue with Greenpeace on this subject.

A threefold approach to make the PFZW portfolio more sustainable:

• Direct impact investments in sustainable energy
• Pressuring companies to reduce their carbon footprint
• Divestment from companies with a relatively big carbon footprint