Almost half of Dutch pension funds (42 per cent) have formulated a policy in relation to climate change, according to research among 38 pension funds carried out by the Dutch Association of Investors for Sustainable Development (VBDO) and AXA Investment Managers.

A majority of the schemes (61 per cent) discussed climate change with the companies they invest in, and 58 per cent measure the CO2 output of part of their portfolio.

Furthermore, 18 per cent of the schemes have quantitative goals to reduce the climate effects of their own portfolio, while 26 per cent ban investments in companies that do not meet certain climate criteria.

A quarter of the pension funds (24 per cent) have earmarked money to invest in companies that help fight climate change.

Pension funds are mainly focused on preventing further damage: only 21 per cent of funds are focusing on adapting to climate change. Even less funds (5 per cent) have a specific investment budget for stocks in companies that are aimed at adapting to higher temperatures.

The research found that 63 per cent of the pension funds do not discuss their climate policy with their asset managers. A slightly lower percentage (58 per cent) have not calculated the risk of climate change on their own portfolio.

AXA IM Netherlands country manager Hanneke Veringa, said: “Once the Dutch pension funds start publishing the climate consequences of their investment policy, more attention will be given to the contribution of institutional investors on reducing CO2 emissions. Discussions with companies and a specified goal for the reduction of the carbon footprint of the entire portfolio are crucial elements of this.”

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