The 'sin stock companies' run the risk of being tackled by regulation. For example, tobacco is strictly regulated in the Netherlands, companies are not allowed to advertise it and hefty excise duties are levied. Fossil companies also run the risk of a significant CO2 tax. That would affect the revenue model of those companies.
Mathijs van Dijk, professor of Finance at RSM, also sees similarities between sin stocks and fossil companies. "The long-term effect of ABP's move (i.e. stopping with investing in fossils) may be that it will become more difficult for them to raise money on the capital market," says Van Dijk. "CO2 seems to be becoming a new category sin stock. There are more and more investors who say they are leaving the sector."