National Pension Service Declares 'Coal Phase-Out'... No Investment in New Coal Power Plant Construction (Comprehensive)

[Asia Economy Reporter Hwang Yoon-joo] The National Pension Service (NPS) has agreed on the need to reduce carbon emissions amid the climate change crisis and decided not to invest in projects for the construction of new coal power plants domestically or abroad going forward.

The NPS Fund Management Committee (Fund Committee) held its 6th meeting on the 28th at The Plaza Hotel in Jung-gu, Seoul, where it reviewed and approved the 'Introduction Plan for Investment Restriction Strategy of the National Pension Fund,' among other matters.

After discussions, the Fund Committee declared a 'coal phase-out' management policy and decided to introduce 'negative screening' that restricts investments in the coal mining and power generation industries in the future.

Negative screening refers to a policy that limits industries or groups of companies negatively evaluated from an ESG (Environmental, Social, and Governance) perspective from eligible investment targets or investment portfolios.

The Fund Committee will start with the coal phase-out declaration and will not invest in projects for the construction of new coal power plants domestically or internationally, preparing an investment restriction strategy by establishing phased implementation plans.

To this end, related research projects will be conducted in the second half of this year.

During this process, the Fund Committee stated that it plans to institutionalize the implementation plan by reflecting the opinions of various stakeholders, including academia and businesses.

Additionally, the Fund Committee will add investment restriction clauses to the 'National Pension Fund Management Guidelines' and announce the direction of the coal phase-out management policy to maintain consistency in fund management and increase predictability.

In the declaration released on the day, the Fund Committee stated, "In preparation for climate change and strengthening international environmental regulations, the National Pension Fund, one of the world's top three pension funds, declares a coal phase-out management policy and aims to proactively establish fund management strategies from a risk management perspective."

It added, "As a long-term investor responsible for the stable retirement income of the people, we will strive to realize a sustainable society," emphasizing, "We will actively participate in creating a low-carbon industrial ecosystem and play a leading role in the transition to a carbon-neutral society."

This content was produced with the assistance of AI translation services.