Dutch Pension Fund Agreement On Responsible Investment

In July 2019, a number of pension funds also committed to the Dutch climate agreement and adopted the CO2 emission reduction targets set out in the climate agreement. From 2020, pension funds will report on the impact of their investments on the climate and will have developed action plans to limit these effects until 2022. They will therefore contribute to the achievement of the goals of the Paris climate agreement. “Dutch pension funds have been at the forefront of responsible investment, but less so in impact investing” – Yvonne Bakkum, FMO Faryda Lindeman, senior specialist responsible investing at Dutch investment manager NN IP, said: “The Netherlands is one of the first countries to start looking at responsible investments and it has grown quite rapidly because of Zembla. Everyone started to think about the impact of investments and whether it is actually positive or negative. It is the power of stakeholders that can really move the agenda forward. The pension fund of the chemical giant DSM and the KLM system for ground personnel have already announced that they have signed the document. The agreement is structured so that leaders in the areas in which they are currently at the limit of their opportunities can make further progress by integrating OECD and UN guidelines into their policies and practices and cooperating in cases. In addition, participating pension funds, with more limited resources and opportunities, will be able to take a major step forward through the cooperation provided in the agreement and, among other things, the instruments (an instrument) that will be developed in the first year. This will allow them to reduce their negative effects on their asset portfolios and increase their positive effects. The parties are confident that this approach will contribute to the objectives of the OECD and CNUP guidelines and that the agreement will allow them to guide how pension funds will be implemented. Claudia Kruse, Director of Investment and Governance responsible for investment and governance at APG, also represented the Dutch financial sector in the high-level expert group on sustainable broadcasting financing, which worked before TEG.

It has been credited for the country`s place in scientific research compared to larger countries and means that Dutch governments often take a long time to form – a record number of 208 days for the current government. This is also reflected in the Dutch financial sector`s approach to responsible financing. Another pension fund, which has passed on the DNB in its role as pension regulator, said it was forced to divest $300 million of investment in the forestry sector for liquidity reasons. The development of the Pact for Sustainable Investment in Pension Funds was coordinated by the Social and Economic Council (SER), which supported similar agreements with insurers and banks. The Dutch program “Zembla” has had “not only a great influence on the Dutch pension sector, but also all over the world.” – Jan Willem van Gelder This is a translation of the official Dutch version of the agreement. If there is any doubt as to the accuracy or interpretation of the English translation, the Dutch version applies. Mr Profundo also helped develop a 13-year initiative with VBDO, the Dutch association of viable investors, to put the 50 largest pension funds in the Netherlands on responsible investments. The latest benchmark report, which had a 100% response rate, put ABP in the lead.

On the other hand, the Dutch central bank DNB has taken a leading position in sustainable financing, not only in the Netherlands, but also internationally. It was the first central bank to join the PRI earlier this year and produced an eight-page responsible investment charter for its reserves. And he is one of the first regulators to test his country`s financial sector in climate stress.