VBV-Pensionskasse signals more climate responsibility through its decarbonisation strategy in 2017. The company is reducing its carbon footprint and focusing on a sustainable decarbonisation strategy in keeping with the 21st UN COP21 Paris Agreement. It completely switched its biggest Austrian segregated account – the VBV Passive World Equities Fund – to low carbon.
One of VBV’s core investments, the fund currently encompasses some €850m or about 1,600 individual stocks and constitutes about 40% of VBV’s entire equity portfolio. In switching to low carbon, VBV-Pensionskasse now invests in a portfolio of companies whose carbon intensity has been reduced from 221 tCO2 previously to 100 tCO2 per one million in sales. This is equivalent to a reduction of 55%, to about 100,000 tons of CO2 per year, or to the traffic seen in a medium-sized city like the one of Austrian regional capital Wels each year.
“The VBV-Pensionskasse has realized they need to decrease their dependence on fossil fuels – for economic as well as ecological reasons. When it comes to climate protection, VBV is a true role model. I hope many companies will follow their lead so we can successfully implement the historical Paris agreement”, commented Andrä Rupprechter, Austrian Federal Minister of agriculture, forestry, environment and water management.
“As market leader, we believe that the carbon footprint of investments and appropriate decarbonisation strategies for capital investments are landmark issues that reach far beyond the pension fund sector,” said member of the board and head of Investments Guenther Schiendl.
This rapid and sizeable reduction in carbon intensity is made possible by switching to the offering of MSCI.
The company has set further energy efficiency and environmental management objectives for the coming months. An environmental management system will be rolled out across all areas and certified in accordance with the international standard ISO 14001 in the course of the year, enabling market leader VBV to once more demonstrate its leadership within the sector.