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Dutch insurer NN Group, asset manager slashing coal investment within 10 years

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Dutch insurer NN Group, asset manager slashing coal investment within 10 years

Dutch insurer NN Group NV and its asset manager NN Investment Partners Holdings NV outlined plans to restrict investments in companies with exposure to thermal coal, in line with the Paris Agreement on climate change, with a goal of generally phasing out coal investments within 10 years.

Under a policy released May 29, the group will divest equity and fixed income holdings held within mutual funds, with a focus on companies that book in excess of 30% of revenue from thermal coal mining.

NN Group will also apply the restrictions to its proprietary assets, aiming to reduce investments in thermal coal mining and coal power to between 0% and 5% by 2030.

Since its existing investments are primarily in corporate bonds, the group will cut the investment upon bond maturity unless the related company commits to reduce thermal coal exposure, with a threshold of 30% as of May 29, reducing to 25% in 2022 and to 5% or lower in 2030.

NN Group also said it will stop underwriting companies that have more than 30% thermal coal mining-based revenue or use at least 30% thermal coal used for power generation, effective July 1. Existing contracts will not be renewed and by 2030, the group plans to only underwrite companies that have 5% or lower coal exposure.