Luxembourg, 17 December 2019 – Greenpeace Luxembourg secured a partial win in a legal dispute over the climate-damaging investments of the Luxembourg sovereign pension fund (FDC). The Administrative Court declared Greenpeace’s legal action against the Minister of Social Security Romain Schneider as admissible (1). The judge underlined in his ruling that the Minister did not respect his legal obligation to respond to Greenpeace’s Luxembourg letter, sent at the beginning of August.
Also, the judge confirmed that the information requested by Greenpeace about the greenhouse gas emissions and the climate-related financial risks associated with the pension fund’s investments is considered as environmental information within the meaning of Law on Access to Environmental Information (2). According to the Court, however, there is no legal basis for the Minister to either comply with the Paris Agreement or to possess the climate-relevant information requested by Greenpeace Luxembourg. Given this decision, Greenpeace calls on the government to create the legal basis that obliges the pension fund to reshape its investment policy so that it protects the climate and people’s pensions.
“In today’s judgment, the Court underlined that the Minister for Social Security is only required to supervise, but not to actively shape the pension fund’s investment policy in the interest of the general public and the environment,” said Philippe Penning, lawyer for Greenpeace Luxembourg. “Simply put, this means that the pension fund’s board of directors can do what they want with the money of the contributors, without taking climate protection and environmental concerns or the interests of pension fund beneficiaries into account.”
The judge also pointed out that the Paris Agreement stipulates that “financial flows [must be made] consistent with a path towards low greenhouse gas emissions and climate-resilient development”. However, the judge interpreted the Agreement as not legally binding under international law since “it does not provide a coercive mechanism or any sanctions for states that do not meet their obligations.”
“Greenpeace expects the government to take immediate action to create a legal basis for Luxembourg’s sovereign pension fund to end its investments in climate-damaging companies in the coal, oil and gas sectors,” said Martina Holbach, Climate and Finance Campaigner at Greenpeace Luxembourg. “A government that expects everyone to be committed to climate protection should not be able to evade its responsibility. Given the climate crisis, the pension fund’s investments in climate-damaging companies must stop immediately to protect the climate as well as the pensions of current and future generations.”
Contact
Martina Holbach, Climate and Finance Campaigner, Greenpeace Luxembourg, [email protected], (+352) 621 233 362
Myrna Koster, Climate Justice and Liability Campaigner, Greenpeace Luxembourg, [email protected], (+352) 54 62 52 – 24
The petition is available on: www.fossilfreepensions.lu
(1) In a letter to Romain Schneider, the minister responsible for Luxembourg’s sovereign pension fund, Greenpeace Luxembourg asked, among other things, information about how the fund intends to align its investments with the objectives of the Paris Agreement. According to the Paris Agreement, the flow of funds must be reconciled with a path towards low greenhouse gas emissions and climate-resilient development. According to Greenpeace Luxembourg, this means that the pension fund must stop investing in coal, oil and gas companies. Greenpeace has also requested disclosure of the climate finance risks associated with the pension fund’s investments. Experts from the financial sector, financial regulators and central banks warn of financial losses in companies which business model is based on fossil fuels or in companies that are threatened by the effects of climate change.
(2) The legal basis of the letter sent by Greenpeace is the Law of November 25, 2005 on public access to environmental information (Loi du 25 novembre 2005 concernant l’accès du public à l’information en matière d’environnement).