Updated March 4th, 2024 at 13:02 IST
ABP, with €502 billion ($545 billion) in assets, shifts focus to sustainable investments, moving away from those with climate impacts.
Representative | Image:Shutterstock
Socially responsible investments: ABP, the largest pension fund in the Netherlands, unveiled its plan on Monday to steer its investment portfolio towards making a positive impact on society and the environment. With assets totalling approximately 502 billion euros ($545 billion), ABP announced its intention to transition away from investments with climate impacts while increasing its focus on companies and projects that promote sustainability and social progress.
Local focus
By 2030, ABP aims to allocate at least 30 billion euros to “impact investments,” specifically targeting initiatives such as affordable and sustainable housing and renewable energy projects. Emphasising its focus on supporting local endeavours, the fund intends to invest a minimum of one-third of this amount within the Netherlands.
In alignment with its sustainability goals, ABP plans to divest from companies with detrimental environmental practices that fail to demonstrate improvement. The fund stressed its stance, stating that businesses with models and activities detrimental to climate and biodiversity do not align with its investment strategy.
Gradual divestment strategy
ABP outlined a cautious and gradual approach to divesting from polluting investments, beginning with its holdings in developed markets before extending to emerging markets. Over the past few years, ABP has already taken steps to reduce its exposure to fossil fuel companies and has refrained from investing in tobacco and numerous arms manufacturers.
(With Reuters Inputs)
