The Dutch Pension Federation has called for the European Commission (EC) to clarify whether and how the bill for the Corporate Sustainability Due Diligence Directive (CSDDD) applies to pension funds.

Responding to a consultation from the EC, the federation said it was “positive” about the proposal, which aims to impose a European standard on companies to help implement the policy on international socially responsible investment in the context of the IMVB Covenant.

The CSDDD proposal imposes obligations on companies, as well as financial institutions such as pension funds, on sustainability due diligence.

However, the Dutch Pension Federation noted that the proposal “raises questions” about whether and how the rules apply to pension funds.

Furthermore, it said that the proposal was “significantly out of step” with the OECD guidelines, on which the IMVB Covenant and Sustainable Finance Disclosure Regulation are partly based.

The Dutch Pension Federation has therefore asked that the proposal be clarified and amended.

“It is currently difficult to assess the impact of the proposal on pension funds,” the federation stated.

“At the same time, the Dutch Federation of Pension Funds is a strong proponent of the principle of sustainability due diligence, as laid down in the OECD guidelines.

“We strongly hope that the EC and co-legislators can align the proposal with the OECD guidelines and provide clarity on the scope, so that we can fully support the proposal.”

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