Exxon's disclosures on emissions prompt German manager to sell shares.
In a significant move, Union Investment, a German asset manager overseeing approximately €500bn, has sold its €500m holdings in ExxonMobil and its stake in EOG Resources. The decision stems from concerns about the companies' climate commitments and inadequate progress towards long-term climate targets.
Henrik Pontzen, Union Investment's Chief Sustainability Officer, stated that the decision was the result of "intense, and at times difficult" dialogues with the companies' leadership. Pontzen emphasized that Union Investment's climate strategy mandates all companies to commit to long-term, comprehensive climate targets.
The primary concern for Union Investment relates to Scope 3 emissions disclosures, which capture indirect emissions from the use of a company’s products—primarily relevant for fossil fuel producers like ExxonMobil and EOG Resources. The lack of credible, transparent, and comprehensive Scope 3 emissions disclosure raises doubts about these companies' alignment with net-zero pathways.
ExxonMobil's Scope 3 emissions account for around 90% of its total emissions, highlighting the significance of this issue. Union Investment's divestment underscores the growing divergence between US and European asset managers in their approach to ESG and climate-related initiatives.
While Union Investment has sold its holdings in ExxonMobil and EOG Resources, it remains invested in Shell and Total, both of which have set emissions reduction targets that include Scope 3 emissions. Union Investment announced last year its intention to divest from all oil and gas firms who fail to present credible net-zero strategies.
The decision to divest from oil and gas firms who fail to present credible net-zero strategies is part of a commitment to challenging fossil fuel expansion. Union Investment has not announced any plans to invest in renewable energy sources as a direct result of this divestment.
Meanwhile, Sarasin & Partners, another European firm, sold its stake in Norwegian oil firm Equinor, citing concerns over the firm's transition strategy. This move marks another instance of European firms taking a more aggressive stance on climate change.
The London Stock Exchange is hosting the NZI Annual Conference on 21.10.2025, providing a platform for discussions on similar issues. The conference aims to bring together leading experts and investors to explore the challenges and opportunities in achieving a net-zero economy.
As the world moves towards a more sustainable future, the decisions of asset managers like Union Investment will continue to shape the landscape of the global energy sector. The credibility standard for net-zero alignment, demanding clear, ambitious climate commitments and transparent emissions disclosures, is becoming increasingly important in this context. Companies that fail to meet these criteria may find themselves excluded from portfolios, as Union Investment has demonstrated with its divestment from ExxonMobil and EOG Resources.
Environmental science reveals that Scope 3 emissions, particularly in fossil fuel producers like ExxonMobil and EOG Resources, are of significant concern due to their indirect contributions to climate change. As a result of inadequate progress towards long-term climate targets and a lack of credible, transparent Scope 3 emissions disclosures, Union Investment, a leading asset manager, has sold its holdings in these companies, signifying a shift in finance and business towards more sustainable practices.
