Sierra Membership Endorses Report Revealing Pension Funds Failing to Cease Asset Managers Backing Fossil Gas Enlargement

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PARIS — Pension funds and different asset homeowners are exposing shoppers and beneficiaries to rising climate-related monetary dangers by failing to cease asset managers supporting fossil gas growth, based on new evaluation revealed as we speak by Reclaim Finance and endorsed by AnsvarligFremtid, Fossielvrij NL, Sierra Membership, SOS UK, and Urgewald.

Reclaim Finance discovered that 30 of the most important U.S. and European asset managers held nearly $17 billion (USD) in bonds newly issued by fossil gas builders. And whereas many asset homeowners say they have interaction asset managers to enhance their local weather practices, asset managers proceed to help the growth methods of fossil gas builders after they vote in favor of their administration at annual basic conferences (AGMs). Reclaim Finance and companions are urging asset homeowners to make their selection of asset supervisor conditional on ending help for fossil gas growth.

“Local weather change poses a systemic threat to your entire economic system and to the retirement safety of hundreds of thousands of employees, and asset homeowners can not shield portfolios if their asset managers are usually not ready to confront that threat. If asset managers can not present credible plans to confront the local weather disaster and steward investments responsibly, pension funds and different asset homeowners have an obligation to maneuver their cash to managers who will. Doing so units a strong precedent for different asset homeowners all over the world: Asset managers who fail to take local weather threat critically ought to count on to lose shoppers to those who do higher,” stated Ben Cushing, Director of the Sierra Membership’s Sustainable Finance marketing campaign.

An evaluation of 30 of the most important U.S. and European asset managers discovered that almost all continued to make substantial investments in bonds issued by fossil gas builders from January 1, 2024 till June 30, 2025 (2). Some asset managers, together with BlackRock and Amundi even elevated their fossil gas holdings by way of not too long ago issued bonds (3).

Strain from institutional buyers for larger local weather motion has elevated in current months (4) — with some, together with the Dutch pension fund PFZW, going so far as to withdraw mandates from BlackRock and different asset managers due to their failure to take local weather dangers under consideration (5). However most have remained silent, regardless of their fiduciary obligations to their shoppers, which ought to require them to take local weather impacts on the economic system, and on their portfolios, under consideration.

Only some of the 30 asset managers assessed seem to have taken credible steps to restrict funding in fossil gas growth, similar to Ostrum Asset Administration discovered to not maintain any not too long ago issued bonds from fossil gas builders, and BNP Paribas AM committing to not buy any bonds issued by oil and fuel producers on the first market.

“Pension funds and different asset homeowners can now not ignore the climate-related monetary dangers from working with asset managers which might be investing in fossil gas growth. They’ve a fiduciary responsibility to behave within the pursuits of their shoppers and beneficiaries, but most appear keen to show a blind eye. Whereas some asset homeowners have already taken motion, they have to all demand extra from their asset managers and demand on sturdy local weather motion. They need to be sure that asset managers take their local weather issues under consideration and cease supporting on-going fossil gas growth. And if asset managers can not meet their necessities, they have to not entrust them with any new investments,” stated Agathe Masson, Reclaim Finance’s sustainable funding campaigner.

Reclaim Finance additionally discovered no progress when it got here to asset managers’ shareholder voting behaviour at firm AGMs in 2025. The 30 asset managers analyzed didn’t use their votes to oppose fossil gas firms’ growth plans, with 81% of votes on common in help of firm boards of administrators, together with votes to re-elect administrators accountable for growth methods (6). Only one asset supervisor, Union Funding, stood out by voting to oppose fossil gas growth methods at nearly all of the AGMs of fossil gas firms (7).

Reclaim Finance and companions are urging pension funds and different asset homeowners — together with ABP within the Netherlands, NEST within the UK, and PFA in Denmark — to make their selection of asset supervisor conditional on ending help for fossil gas growth. They need to require asset managers to cease investing in bonds issued by fossil gas builders and to vote in opposition to the administration of firms pursuing fossil gas growth and set out clear penalties if asset managers can not comply.

Notes

1. An evaluation of the local weather practices of asset managers, Reclaim Finance, AnsvarligFremtid, Fossielvrij NL, Sierra Membership, SOS UK, Urgewald, 9 December 2025. For full particulars of the information analyzed, contact helen@reclaimfinance.org
2. 51% of the financing for firms creating new fossil gas initiatives comes from bond issuances. Bonds issuances due to this fact allow fossil gas firms to finance their new fossil gas venture, contributing to exacerbate local weather change.
3. BlackRock was discovered to carry USD 2.6 billion in newly issued bonds of oil and fuel builders, in comparison with USD 1.7 billion final 12 months, and Amundi held USD 343 million in newly issued bonds of oil and fuel gas builders, in comparison with USD 138 million final 12 months.
4. As an example, in February, a bunch of 26 asset homeowners, representing over $1.5 trillion in investments, issued an announcement calling on their asset managers to develop a strong engagement technique to deal with local weather dangers.
   Monetary Occasions, February 13 2025, Long run buyers break up with asset managers over local weather threat
   One other instance is the COP 26 Asset Proprietor Declaration, through which a bunch of UK universities and foundations revealed in Might 2023 a letter calling on asset managers to halt new main market investments linked to fossil gas growth and to vote in opposition to the re-election of administrators of fossil gas builders.
5. Dutch pension fund, PFWZ withdrew its mandate from BlackRock in September 2025 citing sustainability issues; The Folks’s Pension and AdademikerPension withdrew their mandates from State Avenue in February and March as a result of asset supervisor’s insufficient sustainability method, in June Sierra Membership Basis broke from BlackRock, and in November 2025 the NYC Comptroller suggested pension boards to drop BlackRock, Constancy Investments and PanAgora attributable to their insufficient decarbonization plans.
6. When taking a look at help of firm boards of administrators, the evaluation considers each director re-elections and approval of the discharge of the board of administrators.
7. Union Funding opposed 95% of the resolutions approving the actions of the boards of administrators of fossil gas builders.

Concerning the Sierra Membership

The Sierra Membership is America’s largest and most influential grassroots environmental group, with hundreds of thousands of members and supporters. Along with defending each individual’s proper to get outdoor and entry the therapeutic energy of nature, the Sierra Membership works to advertise clear vitality, safeguard the well being of our communities, shield wildlife, and protect our remaining wild locations by way of grassroots activism, public training, lobbying, and authorized motion. For extra data, go to www.sierraclub.org.