1 in 5 pension providers still not SRI-proof
NETHERLANDS - Over 20% of Dutch pension funds and pension insurers have yet to make any effort to develop a socially-responsible investment (SRI) policy, according to the Association of Investors in Sustainable Development (VBDO).
In its second edition of its benchmark SRI by Dutch pension funds and pension insurers, the VDBO also claimed pension providers do not always translate their SRI policy to a broad and well-thought-through combination of instruments.
"With only one or two instruments - for instance the exclusion of ‘controversial weapons' - an SRI policy can not be executed in a credible way," said the organisation today.
The report also warned pension funds still need to do more in terms of justifying the investment policy to participants and other interested parties, while funds also should do more to facilitate a more consequent and thorough dialogue with the companies in which they invest.
VBDO surveyed 18 industry-wide pension funds, two occupational pension funds, 16 corporate pension funds, and seven pension insurers, nine of which stated not to have any SRI policy in place nor were they planning on implementing any such policy.
A number of small pension funds said it is difficult to implement an SRI policy, since these funds often use external asset managers and it is difficult to find asset manager who can implement an SRI policy without additional costs.
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