F&C welcomes new ESG guidelines for Dutch Pension funds

F&C welcomes the publication of a handbook by the Dutch associations of pension funds (VB, OPF and UvB), advising pension funds on how to approach ethical investments at a time when public scrutiny about the sustainability of the investment portfolios of some of the country's largest schemes is at its highest.

Public and media interest in the subject has been increasing since April following the broadcast of a TV documentary unveiling pension fund exposure to companies in the production of anti-personnel mines, cluster bombs, environmental pollution and child labour.

With this report, the associations aim to encourage pension funds to consider social, environmental and governance (ESG) criteria in their investment policies as these fit with their mission and fiduciary duty. They also call for a joint effort across the industry and collaboration with asset managers among others, to design a policy for this.

"The Dutch pension fund industry has been at the forefront of innovation in terms of investment strategies and we welcome the increased importance that is being given to ESG issues in this market because we believe these are fundamental drivers of long-term corporate performance" said Karina Litvack, Head of Governance and Sustainable Investment (GSI) at F&C. "F&C has years of experience working with Dutch pension funds in defining sustainable investment strategies and corporate engagement programmes and we believe that, with our 14-strong GSI team and our local presence in the Netherlands, we can meet the growing demand from Dutch clients."

F&C's track record in sustainable investments dates back to 1984 with the launch of the first of its Stewardship suite of retail funds, which pioneered socially responsible investment in Europe. The firm's leadership in the area of governance, engagement and ethical investments was reinforced last month when it was ranked as the top sustainable asset manager by FairPensions, an organisation which campaigns for responsible investing.