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Pensioenfonds Zorg en Welzijn (PFZW)

Initial target disclosure: April 2023 (Updated with May climate action plan)

Portfolio level

Portfolio level – Portfolio decarbonisation reference target


  • Position data: 31 December 2019
  • Emissions data: 2018 (partially 2017 data)

Baseline performance: 9.2mn tCO2e

Target year: 2030

Target(s): -50% tCO2e

GHG scopes included: Scope 1 + 2 for all asset classes and on portfolio level.  When data improves, PFZW will consider including scope 3 emissions in the target.

Asset classes in scope:

  • listed equity
  • corporate bonds
  • listed real estate
  • private real estate

Methodology/net zero scenarios:

PFZW applies the methodology of the Net Zero Investment Framework (NZIF) for setting reduction targets. The NZIF Implementation Guide specifies that a portfolio reduction target must encompass the asset classes listed equities, corporate bonds, and real estate. In addition, the target must cover both scope 1 and 2 emissions.

When data and methodologies improve, additional asset classes will be included in the portfolio target.

PFZW uses the P1-pathway of IPCC (limiting global warming to 1.5 degrees). The P1-pathway requires a 50% reduction in global Kyoto greenhouse gas emissions by 2030 compared to 2010. As global emissions have little changed between 2010 and 2019, we apply the 50% reduction to our base year of 2019.

Portfolio level – Investment in climate solutions target

Quantitative target


  • Target 1: Based on the SDI Asset Owner Platform methodology (SDI target for climate solutions)
  • Target 2: Based on the EU Taxonomy methodology for climate change mitigation and adaptation (EU Taxonomy target).

Baseline date:

  • Target 1: 31 December 2019.
  • Target 2: 31 March 2022.

Baseline performance:

  • Target 1: 11.6% of revenues from AuM are compliant with the SDI AOP-methodology. Climate solutions are defined in the SDI-AOP methodology as activities that contribute to the following SDGs:
    • SDG 7: affordable and clean energy
    • SDG 11: sustainable cities and communities
    • SDG 13: climate action
  • Target 2: 4-8% of revenues from AuM are compliant with the EU taxonomy. Note that we have provided a range as a baseline as data coverage and quality is still very limited. In many cases, we rely heavily on data from an external vendor, which is often based on estimations.

Target year: 2030


  • Target 1: 15% of revenues from AuM are compliant with the SDI AOP-methodology.
  • Target 2: 8% of revenues from AuM are compliant with the EU taxonomy.

Methodology: Bottom-up approach: separate targets by asset class. The full portfolio is in scope (all asset classes).

To our knowledge, there are currently no scenarios available in the market to reliably determine a target level that also considers our asset allocation.

Asset level

Asset level – Portfolio coverage target

Approach: Not available at this stage. We will explore how to further develop our asset level approach in the course of 2023 using the Net Zero Investment Framework methodology.

Asset level – Engagement threshold target

Approach: PFZW has an engagement program in place for companies active in the fossil energy sector. From 2024 onwards, we will only invest in fossil energy companies that have a Paris aligned reduction strategy in place.

In 2023, we will start expanding our engagement program towards other material sectors like utilities, consumer staples and materials.

Additional information

Methodology: We believe that our target of -50% CO2e between 2019-2030 is consistent with IPCC Scenario P1. We will track how absolute reductions in the portfolio develop on an annual basis.

Operational emissions: Net zero in 2030 for scope 1 and 2 emissions. The baseline calculation for 2021 is as follows:

  • Scope 1: 55 tCO2e
  • Scope 2: 47 tCO2e
  • Scope 3: 1,836 tCO2e

Fossil fuel investment: PFZW announced on 22 February 2022 that it will no longer invest in fossil energy companies that have not committed to Paris aligned reduction targets as of 2024. See here.

Pensioenfonds Zorg en Welzijn (PFZW) case studies

PFZW: Fossil fuel investment policy

3 April 2023

Commitment 2: Achieving real economy emissions reduction