PGGM is to measure the sustainable return of pension assets
The Dutch pension fund service provider PGGM is to be the first institutional asset manager to develop a method of measuring the sustainable return of pension assets. In doing so, PGGM will provide its institutional clients with an overview of the extent to which their investment portfolios will, over the course of time, contribute to the preservation of the world. PGGM is to start its first pilot projects this year.
Today, PGGM is presenting its 2011 Responsible Investments Annual Report, which offers an insight into the innovative way in which PGGM is to manage its institutional clients' pension assets responsibly.
Marcel Jeucken, Managing Director for Responsible Investments at PGGM: ”Not only do we wish to implement the most responsible investment policy for our customers, but we also want to encourage our financial partners to make the (Dutch) financial sector sustainable. By doing so, we hope to contribute to the recovery of public trust in the financial sector. “
A pioneer in solutions to sustainability issues
PGGM is playing an active role when it comes to finding solutions for the problem of international sustainability. PGGM’s discussions with the Australian government contributed to the introduction of a carbon tax as a prelude to a CO2 emissions trading system in Australia; while, in 2011, PGGM organised a meeting of experts with the ultimate objective of having a code of good corporate governance developed in the United States. In addition, PGGM was also actively involved in the climate negotiations in Durban, South Africa, and, in cooperation with other investors, initiated the Farmland Principles for responsible investment in agricultural land.
2011: an active responsible investment year
In 2011, PGGM raised its mandates for targeted ESG (Environment, Social and Governance) investments to EUR 4.7 billion (2010: EUR 3.7 billion). At shareholders’ meetings, PGGM voted against the reappointment of the executive boards of BP and TEPCO due to a lack of confidence after the oil platform explosion in the Gulf of Mexico and the meltdown in the Fukushima nuclear power station, respectively. PGGM also held talks with mining companies in order to encourage them to reduce their environmental impact and improve working conditions; with the producers and purchasers of sustainable palm oil; with undertakings involved in water dependent sectors in China and India to stimulate lower water usage, and with Shell about transparency in its activities. In addition, PGGM conducted a number of long-term legal proceedings on behalf of its clients and strengthened its advisory council for Responsible Investments by adding a fifth advisor.
PGGM is a leading Dutch pension fund service provider offering pension management, integrated asset management, management support and policy advice to its institutional clients. PGGM currently works on behalf of six pension funds, managing around €120 billion of pension assets of 2.5 million people. As a cooperative organisation, PGGM helps its over 570,000 members to secure a valuable future. PGGM works independently or with strategic partners to develop innovative future benefit solutions combining pensions, care, accommodation and employment.
PGGM - 26 apr 2012