Sustainability policies of Dutch pension funds continue to fall short
Dutch pension funds continue to receive notably low scores for their investment policies on key sustainability themes. This is the conclusion of a research report published today by the Dutch Fair Pension Guide.
The policies fall particularly short on topics such as animal welfare, nature, and gender equality. Pension funds also perform poorly on themes such as taxes, climate change, and health.
The Fair Pension Guide assesses the policies of the ten largest Dutch pension funds (by participant numbers) according to eight social themes. On average, the funds received a rating of 3.3, showing no progress compared to 2022. At that time, the Fair Pension Guide also assessed the funds' policies, and the average rating was also 3.3. Esther Bijl, of PAX and spokesperson for the Fair Pension Guide, stated: "Pension funds are relatively big players in the international capital market. They can use their influence to motivate the companies they (want to) invest in to become more sustainable. The survey shows that they do not yet have sufficient policies on this."
One of the study's conclusions is that too little attention is still paid to the role that suppliers and subcontractors of companies play in sustainability. Many pension funds expect the companies they invest in to adhere to the OECD guidelines, which means they also automatically include important ESG criteria in their policies. However, funds rarely ask companies to include ESG criteria in contracts with subcontractors and/or suppliers. "We see that something often goes wrong in the international value chain. Think of subcontractors or suppliers involved in deforestation, human rights violations or tax evasion. Companies need to check that no abuses take place in the value chain, and this is also where investors in these companies have an important role to play. Unfortunately, only one of the surveyed pension funds, Retail Pension Fund, says something about this in its policy," says Bijl.
In addition, all funds still score poorly for their policies on weapons and arms trade. On the positive side, all funds exclude controversial weapons (such as nuclear, chemical, and biological weapons, or cluster munitions). However, none of the funds address the destination of arms supplies in their policies. Furthermore, the surveyed funds could significantly improve their policies on climate change. Although several funds (ABP, PFZW, PME, and PMT) have sold their investments in oil and gas companies in recent years, most funds' policies do not mention excluding companies that, while not extracting fossil fuels, use them on a large scale.
On the positive side, pension funds generally score better on social themes. Four funds (BPL Pensioen ABP, PFZW and PMT) score satisfactory or higher on labour rights; five funds (ABP, BPL Pensioen, Pensioenfonds Detailhandel, Pensioenfonds Horeca en Catering and Pensioenfonds Vervoer) score satisfactory on human rights.
With the publication of the survey, the Fair Pension Guide wants to encourage pension funds to invest their pension members' money in a responsible and sustainable way, without investing in companies that cause harm to people, animals and nature. Companies in which pension funds invest, as well as their suppliers, should therefore be able to demonstrate that they recognise and actively comply with relevant international conventions, sustainability standards and initiatives. The survey also shows pension members how their fund scores compared to other funds. It is the fourth time that pension funds' policies have been assessed.
ENDS
Background
The Fair Pension Guide is part of the Fair Finance Guide, an alliance of Amnesty International, Friends of the Earth, Oxfam Novib, PAX and World Animal Protection.
- The survey was conducted by research firm Profundo, commissioned by the Fair Pension Guide.
- The review of pension fund policies took place in autumn 2024.
- At www.eerlijkepensioenwijzer.nl, consumers can, among other things, compare pension funds' scores for their investment policies and practices. They can also take action, e.g. by sending their fund a complaint or compliment.
Note to editors
For more information, please contact press officer Margereth van Horen (06-54358548 /m.vanhoren@paxforpeace.nl ). Esther Bijl is the coordinator of the Fair Pension Guide on behalf of PAX and is available for information and/or interviews.
