NETHERLANDS - The two largest Dutch pension funds, ABP and PGGM, will put €500m into "clean technology", the funds announced in a joint statement today.

The mandate, issued for 2007 to 2009, is "one of the largest ever place on the international private equity market", according to the two funds.

AlpInvest, the funds' joint investment vehicle, will look to invest the money in funds which invest in clean technology, particularly in Europe and the US.

Its brief covers "innovations in products, services and processes with a low environmental burden as a result of efficient use of raw materials and energy," the funds said.

This is the first joint instruction on sustainable investment in unlisted companies for the two funds.

Else Bos, chief executive officer of PGGM Investment, said: "We are sure that investing in innovative, clean technology will deliver both a financial and an environmental return."

She added: "This is closely in line with the wishes of our members."

Both the €212bn ABP fund and the €86bn PGGM, succumbing to public pressure, recently decided to stop investing in the armaments industry.