Three South Korean institutional investors on Dec. 3 declared an end to coal exposure in their portfolios.
This comes in line with the global push for responsible investment principles, such as environmental, social and governance criteria.
DB Insurance, the Korea Teachers’ Credit Union and the Public Officials Benefit Association pledged not to be involved in investing in coal power plants at home and abroad through project financing and corporate bonds, at a declaration ceremony in Seoul
The investors called their coal power plant investments “immoral conduct” that is not only highly risky but also detrimental to the environment and human health.
“We support the concerted efforts of mankind to hold global warming to 1.5 degrees Celsius as institutional investors,” read the declaration. “We will turn to invest in sustainable investment by increasing our portfolio exposure to new and renewable energy to contribute to the shift to a low-carbon economy.”
Korea Teachers Pension and the Government Employees Pension Service also put an end to coal-related investment in October last year.
The five institutional investors’ combined assets under management stood at 111.5 trillion won ($94 billion) as of end-June.