Less Than 5% Pensions Investments EU Taxonomy-aligned

Research from the European Insurance and Occupational Pensions Authority (EIOPA) has shown that just 4.5% of occupational pension funds’ direct equity and corporate bond investments are aligned with the EU Taxonomy. A further 26.1% of these funds’ direct equity investments were eligible for alignment. The EIOPA factsheet offered an overview of the alignment of the equity and corporate investments of European Economic Area-based Institutions for Occupational Pensions Provision (IORPs) with the taxonomy for environmentally sustainable activities. A total 9% of in-scope corporate bonds met the criteria for alignment, while 42% were eligible. The figures notably dropped for equity investments, with only 1% aligned and 15% eligible. IORPs allocated 29% of their €2.5 trillion (US$2.71 trillion) investments to equity and corporate bonds as of Q3 2023.

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