These targeted investments, which we call Investing in Solutions (BiO) - not only contribute financially to the returns for our clients, but also create added social and environmental value.
It is essential to calculate the social and environmental impact of these investments, both for comprehensible communication of the positive impact of the pension investments and for the credibility of investing with impact. By calculating the social and environmental impact, sustainability can also be taken into account and weighed in decision-making.
By measuring the social and environmental impact of the investments over many years, we build up knowledge and experience in order to further support the switch to a more sustainable investment portfolio. Some examples of the impact that the companies in which we invest can generate are presented below.
These investments contribute towards the realisation of specific Sustainable Development Goals (SDGs).
In order to provide insight into the contribution made to the SDGs through the investments of our clients and to make this comparable with the investments of other investors, we worked together with pension administrator APG on standardising SDG impact investments: Sustainable Development Investments (SDIs). We have developed a standard for the definition and approach of SDIs, or investments with a market-based return, that make a substantial contribution to the SDGs. See the taxonomies for determining whether an investment contributes towards an SDG here.
In 2018, we defined the contribution of the portfolio to the SDGs for the first time. At the end of 2017, we had invested more than 15% of the total assets under management in companies and projects that contribute towards the SDGs. In 2018, this rose to 18%.
Read more about investing in the SDGs in our Integrated Asset Management Annual Report 2019.