---
title: EU vote signals a Fossil Free future for workplace pension funds
date: 2016-06-30T15:24:00Z
modified: 2023-10-12T12:10:49Z
permalink: "https://350.org/stranded-assets-risk-assessment-now-mandatory-for-eu-pensions/"
type: post
status: publish
excerpt: ""
wpid: 46527
categories:
  - Finance
tags:
  - Europe
author: Nicolò Wojewoda
---

![eu-parliament](https://gofossilfree.org/wp-content/uploads/2016/11/EU-parliament-430x284.jpeg)

EU institutions have reached a deal on a reform of the [IORPs (Institutions for Occupational Retirement Provision)](https://ec.europa.eu/finance/pensions/iorp/index_en.htm) **Directive** that affects workplace pension funds holding assets worth EUR 3.2 trillion on behalf of around 75 million citizens of the Union.

The changes include a clear requirement for EU workplace pension funds to:

1. **consider climate risk and risks related to the depreciation of assets due to regulatory change (“stranded assets”) in investment decisions**
2. **be more transparent with workplace pension scheme members and more open with the public about their investment policies and holdings**
3. **not limit investment decisions to financial considerations only, but include environmental, social, and governance (ESG) issues as well**

The changes are another recognition of the danger the continued use of fossil fuels constitutes to both our climate and our collective finances. 350.org welcomes the move as a game-changer and appreciates [the work of our civil society allies on this](https://shareaction.org/press-release/iorps-shareaction-welcomes-victory-for-responsible-investment-of-pensions-in-the-eu/).

The deal has now been [ratified by the European Parliament by a recent vote](https://uk.reuters.com/article/us-eu-finance-climatechange-idUKKBN13J1SV) ([here](https://drive.google.com/file/d/0ByJRmjx8KBgcZGJzSzhOYXpWUDA/view?usp=sharing) the text that went into the vote – the official approved version hasn’t been published yet)and will be transposed into national law in the member states over the next 24 months.

**To all pension fund divestment campaigners out there: this one’s for you!**