Dutch Pension Fund Agreement On Responsible Investment

CélinePILON > Dutch Pension Fund Agreement On Responsible Investment
Non classé / 18 septembre 2021 / Posted by celine

By mapping the risks and negative effects of investments, based on the UN Guiding Principles for Business and Human Rights and the OECD Guidelines, companies need to give pension funds a better idea of cases of human rights violations and environmental damage. In 2018, more than 80 pension funds signed the International Agreement on Business Management (IRBC) for pension funds. Under this agreement, pension funds undertake to implement in their investment policy the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Economics and Human Rights. This agreement is a unique collaboration between 80 pension funds, 6 NGOs, 3 trade unions and 3 ministries. The aim is to identify, address and mitigate potential abuses in the supply chains behind participating companies. The Dutch firm is negotiating Invest-NL, a €2.5 billion venture capital fund, which observers say could have had blended finance as part of its mission. And the coalition government is discussing a €50 billion Dutch investment fund to support economic growth. All eumedion 65 members are expected to follow the code, including big Dutch investment names such as PGGM, APG, MN and Robeco, but also big international investors like BlackRock. Signatories must incorporate, within two years, the OECD guidelines on how pension funds must monitor and report risks into their ESG policies. In 2007, the Dutch zembla programme produced a presentation on Dutch pension funds and made investments of almost €230 million. in U.S. companies that manufacture cluster bombs and landmines and in companies that have used child labor. In July 2019, a number of pension funds also committed to the Netherlands` climate agreement and adopted the climate agreement`s targets for reducing CO2 emissions.

From 2020, pension funds will report on the impact of their investments on the climate and have developed action plans to limit this impact by 2022. In this way, they will contribute to the achievement of the objectives of the Paris Climate Agreement. Identifying the risks associated with pension fund investments allows funds to better understand the risks of human rights violations or environmental damage, for example. On this basis, they can exert their influence to solve problems and reduce risks, thanks to the knowledge and experience of other parties and their local partners. Pension funds should carry out a thorough risk assessment and, where necessary, adapt their policies and practices to those risks. In addition, specially registered pension funds work with other stakeholders to develop solutions to abuses that occur in the pension fund investment chain. The Dutch financial sector, especially its pension funds, is known to be well advanced when it comes to responsible investment. . .

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