GERMANY - The €49bn Bayerische Versorgungskammer (BVK) became the first German pensions-related provider to adopt the United Nations' Principles for Responsible Investment (UNPRI).
Lothar Panzer, chairman of the board, said: "As largest public pension provider in Germany, the BVK has a special responsibility as a retirement company to put an even greater weight on social, ethical and ecological aspects in future investment decisions."
In its annual report for 2010, the fund said it would draw up a sustainable asset allocation strategy in the first half of 2011.
The BVK also pointed out that the recent financial crisis had once again highlighted a mismatch between short-term incentives and long-term developments.
The scheme said it was "convinced" that pursuing a sustainable asset management was in the interest of all people insured with the BVK and that it would benefit them.
For the last year, the fund reported a 4.9% return, having held around 8.1% in equity funds, 7.6% in bond funds, 22.9% in covered bonds, 8.9% in direct real estate.
Spezialfonds, senior secured debt and registered bonds accounted for 38.8% of the portfolio, hedge funds, FX and commodities 5.4%, private equity, infrastructure and timber 1.2% and derivative fixed income 7.1%.
Until now, 13 companies in Germany have committed to the UNPRI, among them Landesbank Baden-Württemberg, Munich Reinsurance, Deutsche Asset Management, Union Asset Management, oekom research and SD-M Sustainable Development Management.
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