Retirement Savings of European Citizens Invest Tens of Billions of Euros in Fossil Fuel Companies

Mar 26, 2025 – Covina, California: A newly completed in-depth analysis reveals the significant extent to which European citizens' retirement savings are invested in fossil fuel companies through both national and supplementary pension schemes. The report, titled "Retirement investments in Europe: An overview of fossil fuel exposure by country and employer," not only quantifies the substantial financial links but also outlines key recommendations for increasing transparency and transitioning towards climate-aligned investments.

Sphere launched the AtmoSphere Starter platform in 2023, showing that Americans have $1T invested in fossil fuel companies through their retirement savings plans. Today, Sphere supplemented those findings by publishing an analysis of European state-sponsored and employer-sponsored savings plans.

The analysis estimates that over €75 billion of EU pension money is currently invested in fossil fuel companies, encompassing both public and private retirement plans. While countries with large funded pension systems like Denmark and the Netherlands show high per-capita exposure, the report emphasizes that supplementary pension funds and employer-sponsored plans across the EU contribute significantly to this figure.

Building on its initial findings, the report's concluding section calls for urgent action from regulators, pension funds, employers, and individuals to address this issue. Key recommendations include:

• Mandatory Disclosure of Pension Portfolios: The report urges EU regulators to mandate annual public disclosure of all pension fund holdings, similar to Norway's Government Pension Fund Global. This would allow citizens to see exactly which fossil fuel companies their retirement savings are invested in.
• Standardized Reporting on Climate Exposure: Pension funds should be required to report their investments in fossil fuel companies as a distinct category, potentially utilizing metrics aligned with the EU's Sustainable Finance Disclosure Regulation (SFDR), such as the percentage of the portfolio invested in companies on the Global Coal Exit List or Oil & Gas Exit List.
• Leveraging Activist and Open-Data Tools: The report highlights the value of existing databases like Reclaim Finance’s “Investing in Climate Chaos” and suggests expanding such resources and developing similar tools in Europe to facilitate easier analysis of pension fund fossil fuel holdings.
• Analytical Techniques for Scalable Analysis: The report proposes using financial databases and scripting to automate the identification of pension funds holding shares in fossil fuel companies, along with leveraging country-level pension statistics and index data to estimate fossil fuel exposure where direct data is lacking.
• Engaging Pension Providers for Transparency: The report encourages pressure and partnerships to incentivize pension providers, particularly large insurers managing group pensions, to publish detailed holdings of their default investment funds.

Beyond transparency, the report stresses the critical need to realign pension investments with climate goals. It highlights examples of European pension funds that have already committed to divesting from fossil fuel companies or excluding major oil and gas producers. The report also emphasizes the importance of offering fossil-free pension options to individuals and employers, allowing pension savers to choose sustainable funds that exclude fossil fuels.

"This investigation has clearly demonstrated that European pensions are significantly financing the fossil fuel industry, often without the knowledge or consent of the contributors," the report concludes. "The next crucial steps involve implementing greater transparency measures and taking decisive action to shift these investments towards climate solutions. Ensuring a comfortable retirement should not come at the expense of a livable future."

About Sphere

Sphere is a registered public benefit corporation that is on a mission to get climate-friendly investment options in every 401(k). The company sponsors climate-friendly financial products that allow retirement plan managers to maintain their commitment to fiduciary duty without having to compromise on climate. Learn more at www.oursphere.org. For more information reach out to hello@oursphere.org. ‍

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