Dutch pension company scolds Korean firms on climate

APG, a Dutch pension investment company, called on 10 Korean companies to step up their contributions to combat climate change.

Samsung Electronics, Hyundai Steel and LG Chem were among those called out by APG, according to a press statement released on Wednesday. Its largest client is ABP, the biggest pension fund in the Netherlands.

APG managed around 850 trillion won ($700 billion) in pension funds as of last month.

APG sent a letter to 10 Korean companies it invests in encouraging them to do more on climate change.

APG said none of these companies are fully in line with global climate action initiatives like Climate Action 100+.

Climate Action 100+ is an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take action on climate change.

“Climate change is the single biggest challenge the world is facing,” aid Park Yoo-kyung, head of responsible investment and governance Asia Pacific for APG. “These companies are important to the Korean economy and the global supply chain. Transforming them into low carbon businesses is critical to the goal of climate crisis mitigation.”

APG urged the companies to evaluate their existing climate strategies and carbon reduction targets and make sure they are “sufficiently ambitious.”

The letter states it is important for companies to demonstrate consistent and decisive leadership in addressing climate change.

ABP announced last October it would stop investing in fossil fuel producers.

BY JIN MIN-JI [jin.minji@joongang.co.kr]