In the Sustainability Report 2018, PDN explains its sustainability policy and accounts for the most significant results over the reporting year 2018.
For PDN, the sustainability policy is a way of contributing to sustainable development in the world without putting pressure on the portfolio’s risk and return profile. The full sustainability report is included in the annual report and can be found on PDN’s website.
Sustainability in investments is a major aspect of the investment philosophy and an integral component of PDN's investment principles. In consideration of the fund’s place in society, the definition and implementation of the investment policy must be based on more than purely financial aspects. Aspects relevant to the sustainable and humane advancement of society are also observed.
The sustainability policy is based on five pillars.
We do not invest in activities in companies and countries that the United Nations, the European Union, or the Dutch government consider unacceptable or which run counter to the standards and values of the UN Global Compact's Ten Principles. Controversial weapons are also excluded from investment.
PDN uses Impact Investments to help guide us in achieving both attractive financial returns and social objectives. Our investment decisions are based on the UN's seventeen sustainable development goals.
The fund ensures total transparency in terms of pension capital investments. Our website features the names of all the companies the fund invests in.
Where possible, investments are managed and evaluated according to Environment, Social, and Governance (ESG) factors.
We enter into a series of intensive dialogues with companies whose practices are not in line with the UN Global Compact's principles.
In 2018, with the adoption of a carbon reduction target, the fund signed the Montréal Carbon Pledge and appointed an engagement provider, building on the steps taken in 2017.
For 2019, PDN will further investigate how the portfolio contributes towards the UN Sustainable Development Goals, how this can be communicated transparently, and whether target SDGs can be used to provide direction where possible.
The fund will also investigate whether the current voting policy should be extended to include international equity participation and whether sustainability issues should explicitly be included.
In 2019, the fund will also be involved in implementing the Covenant for International Socially Responsible Investing (ISRI Covenant) and the EU Shareholders Directive II.
Work to identify and manage sustainable investment in our liquid and unlisted investments will continue. And the fund is also committed to working with several parties to promote sustainability wherever there is common ground.