Core Viewpoint - The significant changes in the list of delegated investment institutions by European pension funds, particularly the PFZW, are primarily driven by a shift towards sustainability and ESG considerations [3][4][12]. Group 1: Changes in Delegated Investment Institutions - On September 3, PFZW announced the termination of partnerships with Blackrock, L&G, and AQR Capital, which collectively managed 50.9% of its assets [9][12]. - The shift in PFZW's investment strategy emphasizes sustainability, with a focus on climate goals and reducing carbon emissions [3][12]. - PFZW's absolute carbon emissions decreased by 45% from 2019 to 2024, but it still falls short of its 50% reduction target by 2030 [15][17]. Group 2: Trends in European Pension Funds - European pension funds are experiencing a slowdown in divestment from high-carbon industries, with a rebound in investments in fossil fuels observed in 2023, rising to approximately 11.5% of total assets [28]. - A significant increase in the number of pension funds setting climate-related goals has been noted, with many establishing targets for fossil fuel divestment and carbon reduction [31][33]. - Climate voting has emerged as a preferred method for pension funds to influence corporate behavior and achieve climate objectives, driven by both internal strategies and external regulatory pressures [5][35]. Group 3: Impact of Climate Voting - Analysis indicates that climate voting positively correlates with reduced carbon footprints and does not negatively impact portfolio returns, suggesting a "cost-effective" approach for investors [39][40]. - The study found that increasing the proportion of supportive climate votes is associated with lower future carbon emissions and higher total returns [39][40]. - Climate voting is seen as a critical tool for managing climate risks within investment portfolios, with recommendations for asset owners to consider climate responsibility in their selection of asset managers [44][45]. Group 4: Recommendations for Chinese Investors - The climate action logic observed in European pension funds can provide valuable insights for the Chinese market, advocating for supporting the transition of high-carbon industries rather than outright divestment [44][45]. - Chinese asset owners and managers are encouraged to prioritize climate voting as a means to influence corporate low-carbon transition decisions, aligning with national strategies [44][45]. - Suggested focus areas for climate voting policies include setting clear climate goals, encouraging carbon emissions disclosure, and integrating climate risk into overall risk management frameworks [46].