Just 4.5 per cent of institutions for occupational retirement provisions (IORPs) equity and corporate bond investments align with the EU Taxonomy, the European Insurance and Occupational Pensions Authority (EIOPA) has revealed.

The statistic was revealed in its factsheet on how occupational pension funds’ investments align with the EU Taxonomy for sustainable activities.

The factsheet provides an overview of the investments of European Economic Area (EEA)-based occupational pension funds. EIOPA found that a further 26.1 per cent of IORPs’ equity and corporate bond investments are eligible for alignment.

Looking at corporate bonds in the scope, 9 per cent meet the criteria for alignment while 42 per cent are eligible. The figures are lower for equity investments, with 1 per cent aligned and 15 per cent eligible.

“Occupational pension funds, as long-term investors, can play a pivotal role in financing our society’s transition towards a net-zero economy. In this fact sheet, we focus on the investments of IORPs (Institutions for Occupational Pensions Provision) in equity and corporate bonds, to which IORPs allocated 29 per cent of their €2.5 trillion investments as of Q3 2023,” EIOPA stated.

Broken down 12 per cent (€299.8bn) of IORPs’ investments are allocated to corporate bonds and 17.4 per cent to equites (€435.5bn)

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