Taiwan’s Four Major Public Funds and Environmental Justice

BLF Accelerates Financed Emissions Timeline to 2026

Under the newly released 2024-2025 Sustainability Report, the BLF plans to disclose financed emissions data for domestic and mandated foreign equities between 2026 and 2027. This schedule significantly accelerates the original timeline, which had previously slated climate assessments to begin only after 2029, according to Ministry of Labor documents.

Other Major Public Funds Commit to Fossil Fuel Exit

Following consultations with the Environmental Justice Foundation (EJF), Taiwan’s other two major public entities—the Bureau of Public Service Pension Fund and Chunghwa Post—provided verbal commitments to adopt the identical fossil fuel policy announced by the BLF. According to the EJF, both institutions will formally include this restriction in their sustainability reports next year, bringing all four of Taiwan’s major public funds into alignment on climate risk management.

EJF Urges Rigorous Criteria to Prevent Greenwashing

While the EJF welcomed the decision by all four major public funds to pivot away from fossil fuels, the organization emphasized that long-term success relies on strict implementation. According to EJF CEO and Founder Steve Trent, the funds must establish robust assessment criteria to define what constitutes an “actively transitioning” company, ensuring regulatory mechanisms do not become mere formalities or greenwashing tools.

“The climate crisis is threatening global economic and social stability. The Taiwanese government’s action to cease new investments in fossil fuels sets an example for government funds and public capital,” said Steve Trent, CEO and Founder of the Environmental Justice Foundation.

Key Recommendations for Sustainable Finance Growth

To establish Taiwan’s public capital as a global benchmark in sustainable finance, the EJF outlined several strategic recommendations based on the new disclosures:

• Disclose exposure and build phase-out roadmaps: Inventory current fossil fuel exposure and establish clear timelines to reduce and eliminate these holdings.
• Expand asset restrictions: Extend investment limits from equities to bonds and other financial assets to block high-carbon operations from securing long-term capital.
• Refine industry definitions: Lower the revenue threshold for fossil fuel classification to align with domestic financial standards, referencing Taiwan’s Green Stock Designation system.
• Scrutinize active transition plans: Demand that surviving investments align with the Paris Agreement’s 1.5°C target through verified capital expenditure allocations and real carbon reduction.
• Evaluate asset managers: Incorporate portfolio managers’ own climate commitments as a primary scoring criterion during mandate selections.
• Broaden financed emissions coverage: Disclose financed emissions sector by sector, covering petrochemicals, cement, steel, oil, gas, and power generation.

Frequently Asked Questions

When will Taiwan’s BLF stop investing in fossil fuels?

The Bureau of Labor Funds will stop making new investments in non-transitioning fossil fuel companies starting in 2030, according to its 2024-2025 Sustainability Report.

Which institutions are adopting the new fossil fuel policy?

Alongside the BLF, Taiwan’s Bureau of Public Service Pension Fund and Chunghwa Post have made verbal commitments to adopt the policy and formalize it in next year’s sustainability reports, following consultations with the Environmental Justice Foundation.

What is the primary concern raised by environmental groups?

The EJF emphasizes that the policy must feature rigorous assessment criteria to define “active transition” clearly, preventing greenwashing and ensuring genuine progress toward net-zero emissions.