Dutch pension ABP is set to invest €30bn into impact investments within the next six years, of which €11bn will be spread across climate and biodiversity solutions.
The €502bn Dutch pension giant ABP is planning to invest a total of €30bn into impact investments by 2030, of which €10bn and at least €1bn will be dedicated to climate and biodiversity solutions respectively. The fund plans to allocate €10bn within the Netherlands, focusing on affordable housing, sustainable energy, and innovation.
ABP has identified climate and biodiversity as the key themes influencing societal and economic changes, presenting risks and opportunities in its investment portfolio. In addition to this, respecting human rights and good governance are also crucial themes for the fund.
ABP is implementing this criteria by starting with its €102bn equity portfolio in developed markets and will later extend it to other parts of the portfolio.
The fund will no longer consider investments in any company but instead it will create a ‘basket’ of companies that meet ABP’s minimum standards. It now expects companies with a significant impact on climate to present concrete plans for reducing emissions in the coming years.
As such, companies effectively managing the risks of a changing world must align with ABP’s vision. Companies where climate or biodiversity damage is inherently linked to their business activities, with no realistic prospect of improvement, do not fit within ABP’s equity portfolio, said the provider.
Speaking about its investment approach, an ABP spokesperson said: “To provide its participants with a secure pension in a liveable world, ABP must engage in sustainable and responsible investing. ABP seeks a balance between lower and higher risks in its investment mix for a secure pension and the preservation of pension fund value.”
In 2022, Impact Investor reported that APG, ABP’s asset manager, invested $750m in a SDG-focused emerging market private credit fund managed Amsterdam-based ILX, on behalf of ABP and bpfBOUW.
Harmen van Wijnen, chair of the board of trustees said: “Innovation is a timeless imperative for companies in a dynamic economy. They must actively embrace climate policies and contribute to the preservation of nature and biodiversity. This imperative extends to ABP as well, given the profound impact of a changing world on our investments.
“Effectively managing risks within our investment portfolio is of paramount importance. Conversely, ABP’s investments wield influence on the world, presenting opportunities to make a meaningful societal impact by investing in sustainable and dependable energy solutions and affordable rental housing, including within the Netherlands,” he added.
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