The Fossil Fuel Divestment Act, 2018 (the Act) was signed into law by the President on 17 December 2018. The National Treasury Managment Agency (NTMA) has informed me that with effect from that date, it has endeavoured to ensure that the assets of ISIF are not directly invested in any undertaking that generates (or whose subsidiary undertaking generates) 20% or more of its turnover from the exploration for, extraction or refinement of Fossil Fuels (i.e. oil, natural gas, peat, coal or any derivative thereof intended for use in the production of energy by combustion). In the case of any indirect investment (such as the investment of ISIF assets in pooled investment vehicles), the NTMA endeavours to ensure that the indirect investment’s exposure to such fossil fuel undertakings is 15% or less.
In anticipation of enactment of the Act, ISIF developed an initial “Fossil Fuel Exclusion list” of 148 companies in which it would not invest. ISIF had exposure to approximately €72 million worth of stocks and bonds in 38 individual companies contained in that initial list, and these were sold in December 2018 and early January 2019.
In July 2019, the NTMA took the decision to extend the list of restricted companies by a further 33 names and instructed its managers to divest from 15 of those companies.
ISIF is currently finalising its third review before year end which will see the Fossil Fuel Exclusion List extended before year end from the original 148 names to over 200.
The Fossil Fuel Exclusion list is published on ISIF's website. Compliance with the Act is actively monitored and reviewed with a view to ensuring that the Fossil Fuel Exclusion list is updated regularly and that any necessary divestment is actioned.