Dutch metal pension funds launch joint in SRI policy
12 June 2008

Written by Sophie Baker

The two Dutch pension funds for the metal industry, the €33bn Pensioenfonds Metaalelektro (PMT) and the €21.5bn Pensioenfonds Metaal en Techniek (PME), have launched a joint social responsible investment policy.

In conjunction with asset manager and pension provider Mn Services, jointly owned by PME and PMT, the two funds have drawn eight lead principles from international agreements and standards, which will now apply to the funds’ entire investments.

The principles will cover both the exclusions policy as well as voting and engagement policy, meaning that if a company makes a product which violates these principles, the funds will divest. If companies violate the principles on a ‘process level’, by neglecting labour standards for example, the funds will instead start a process of engagement. Mn Services will also use the principles for its investments with other clients.

The eight principles cover business strategy, corporate governance, human rights, labour standards, environment, anti-corruption, investment nexus and disclosure. The funds also want to use their voting rights more actually on shareholders meetings.

Bram van Els, communications director for PME, told European Pensions that “SRI is on top of the agenda in The Netherlands, and PME, PMT and Mn Services believe it will stay there.

“First of all, as institutional investors we believe that companies that operate in a responsible way in the long term achieve the best results and shareholder value.

“Besides this shareholder point of view, we also notice that our stakeholders (unions, pensioners, employees and employers) are increasingly demanding that we operate in a responsible manner,” he added.