Dutch pension fund ABP divests from Alphabet and Meta

The Dutch civil service pension fund ABP has divested from Alphabet and Meta, citing concerns over governance integrity and broader investment criteria. The move follows ABP’s earlier decision to remove Tesla from its investment portfolio.

ABP, one of the world’s largest pension funds, regularly updates its list of investments. According to an analysis by Het Financieele Dagblad, Alphabet and Meta were no longer listed as of the third quarter of last year. In total, ABP has cut ties with approximately 900 companies, reducing its portfolio from 2,000 to around 1,100 firms.

Board chairman Harmen van Wijnen stated that ABP has shifted its investment strategy to focus on four core themes: climate, biodiversity, human rights, and good governance.

“We value returns, but we also assess companies based on these four themes. After applying these criteria, 900 companies were excluded, including Alphabet, Meta, and Tesla. The remaining companies are those that adequately manage risks and remain good investments,” Van Wijnen told Het Financieele Dagblad.

While ABP did not disclose specific reasons for divesting from Alphabet and Meta, Van Wijnen emphasized that governance considerations played a significant role.

“For governance alone, multiple factors come into play,” Van Wijnen said. “Is there an ethical board? How is personnel policy structured? Is there sufficient employee representation? At Tesla, for example, the excessive executive compensation was a determining factor.”