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Stichting Pensioenfonds ABP is a €502 billion ($545 billion) pension fund for Dutch educators and civil servants. announced on Monday A goal to allocate €30 billion in investments by 2030 to impact themes such as climate action, affordable housing, sustainable energy and innovation.
In addition to impact investing, pension funds will review all of their company investments to manage the global risks identified by ABP and create a ‘basket’ of investee companies that meet ABP’s minimum standards. I’m looking forward to it.
““ABP has identified climate and biodiversity as key themes that influence social and economic change and pose risks and opportunities to investment portfolios,” fund officials said in announcing the new investment plan. I mentioned it inside. “Respect for human rights and good governance are also important themes for the Fund. With the new investment policy, ABP will align these themes in its investment portfolio in line with international agreements such as the Paris Climate Agreement and the Kunming-Montreal Biodiversity Agreement. We will set targets and tighten standards for this purpose.”
The pension fund previously pledged to commit to net zero in 2021 and achieve a net zero investment portfolio by 2050 or earlier.
impact investing
The fund expects to allocate €10 billion of its €30 billion commitment to impact investments focused on affordable housing, sustainable energy and innovation. The fund also plans to allocate €10 billion for climate-related investments and a further €1 billion for biodiversity solutions. According to ABP, an investment of 10 billion euros will be made in the Netherlands.
The fund’s announcement emphasized that the investment strategy must deliver high returns. ““Through impact investing, ABP aims to ensure that investments double returns more often,” fund officials wrote. “These investments have strict definitions and require appropriate economic returns combined with measurable contributions that have a positive social and environmental impact.”
stock investment
The fund announced it would exclude holdings in companies whose operations contribute to climate or biodiversity damage. The fund also plans to shift its equity portfolio to a basket of companies aligned with ABP’s criteria.
““To provide participants with secure pensions in a livable world, ABP must commit to sustainable and responsible investments,” the announcement said.
ABP expects companies in its stock portfolio to present emissions reduction plans in the near future. The fund said it will gradually adapt its requirements and criteria for companies to include in its stock portfolio. These criteria will be introduced into the fund’s €10 billion developed market equity portfolio in December 2023 and are expected to be extended across the entire equity portfolio.
“ABP aims to implement this carefully and thoughtfully, taking the first step now and assessing whether progressively more stringent standards can and should be imposed based on the experience gained.” It is stated in the announcement.
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Tags: ABP, impact investing, Netherlands, Stichting Pensioenfonds ABP
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