EU institutions have just reached a deal on a reform of the IORPs (Institutions for Occupational Retirement Provision) Directive that affects 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 pensions to consider climate and risks related to the depreciation of assets due to regulatory change (“stranded assets”), disclose how they do this and where these factors are considered in investment decisions.

The changes are another recognition of the danger the continued use of fossil fuels constitutes to both our climate and our collective finances. welcomes the move and appreciates the work of our civil society allies on this.

The deal should be ratified by a European Parliament vote in October and then transposed into national law in the member states.

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