Study on impact investment policies of Dutch Pension Funds

The Dutch VBDO (the Dutch Association for Investors for Sustainable Development) has studied the way in which pension plans are integrating impact into the investment policies of Dutch pension plans. The study includes the 44 largest pension plans in the Netherlands.

One of the conclusions of the study is that while pension plans are working on impact in their investment strategies, the implementation is quite different from one fund to another. Interestingly, the study shows that many pension plans look at asset specific solutions. However, as outlined in an interview with PGGM in the study, the adoption of a measurement system throughout all asset classes based on the UN SDGs provides a holistic approach. It is essential in todays’ market that fiduciaries can demonstrate how they are contributing to sustainable investment opportunities, not just how they are reducing exposure to climate risks. The SDI AOP approach enables investors to capture this, which in turn also informs various frameworks.

The VBDO report also states that one of the key characteristics of impact investing, the measuring of impact, is done with various standards and methods and use a multitude of indicators. That’s one of the reasons the SDI AOP wants to set a global standard for investing into the sustainable development goals. A shared understanding and standard for SDIs can greatly enhance engagement with companies, regulators and other stakeholders. As can disclosures by companies and investors alike in relation to SDGs.