NN Group tightens coal restrictions on large producers and generators

NN Group has tightened its Thermal Coal Policy, strengthening restrictions on large thermal coal producers and on companies developing new coal projects, while expanding the scope of exemptions and formalising the process for assessing and granting them. The policy, first introduced in 2019, guides how NN manages proprietary investments in companies involved in thermal coal production and coal-fired power generation, as part of a commitment to phase out thermal coal exposure in the corporate investment portfolio by 2030.

The update, announced in a statement on 3 September, adds restrictions covering large thermal coal producers, large coal-fired power generators, and companies developing new coal mines or coal-fired power plants. NN said percentage-based thresholds remain useful but "do not always provide a complete picture of a company’s involvement in thermal coal", giving the example of a company that generates relatively little revenue from coal while still being a significant producer.

NN expects the update to have only a limited impact on the current portfolio. Since introducing the policy, NN has reduced thermal coal-related investments from around €1.8 billion in 2019 to approximately €300 million at the end of 2025.