Investing with respect for people and the environment
By investing money, you can make a difference. But what does this mean for the pension fund and is our investment policy unique?
Making a difference with investing
Saving on its own does is not generate sufficient return. For pensions to be future-proof, returns are absolutely essential. But how much risk should we take and what do we invest in and what do we avoid investing in? As a pension fund, we have drawn up investment principles based on ten investment beliefs. For us, investing with respect for people and the environment is certainly part of that. Moreover, since 2018 the Ethics Committee has been advising the Board directly rather than the Investment Committee; the name has therefore been changed to the ESG Policy Committee (Environmental, Social and Governance).
Concrete measures
In addition to the ten universal principles of the United Nations, we apply a number of extra criteria. For example, we no longer invest in companies that earn a substantial part (5% or more) of their turnover in the tobacco sector. The informative meetings in 2017 and 2018 also showed that members and retirees were in favour of this. Furthermore, the concrete measures of our socially responsible investment policy are transparent.
Does this make us unique?
Certainly not. Each year, the 50 largest pension funds participate in a benchmark of The Association of Investors for Sustainable Development (VBDO) to see how the sector is doing. Together, these 50 pension funds account for 92% of the total invested assets for pensions. We also participate in this benchmark, where we are assessed on governance, policy, implementation, and accountability. Compared with last year, we scored better in all areas. The result is that we have risen from the 41st to the 35th position on the ranking list. Obviously we are happy with this.
But could we do it faster or better?
There is obviously more that can be done in the area of Socially Responsible Investment, but we cannot do everything at once. A step-by-step approach is necessary to ensure the future sustainability of the pension fund. This is due to the pension obligations we have as a foundation. It is also due to existing agreements about the balance between risk and return. We feel responsible for the pensions of all members and pension beneficiaries. We hope we can count on your understanding to improve on a step-by-step basis and make a difference.
Iris Blankers, Chairman of the ESG Policy Committee says, ‘In the near future we will be working on a multi-year policy. This is necessary in order to make a difference in the long term. We will then have something we can work towards step-by-step.’