Pension fund ABP to invest €30 billion in sustainable projects; €5 bil. in rental homes

Dutch civil servants pension fund ABP wants to invest an additional 30 billion euros of the cash it manages with a greater focus on impact projects and improved sustainability. The largest pension fund in the Netherlands, which is the fifth largest globally, is looking at readying 5 billion euros just for rental housing in the Netherlands out of 10 billion euros it plans to invest domestically.

The major domestic investment is part of ABP’s new sustainability and responsible investing policy without sacrificing its goals for increasing gains on behalf of their pension members. The fund is aiming to double its returns by 2030 with possible investments in affordable rental housing and sustainable energy.

The organization is also considering how it can finance projects related to climate initiatives and biodiversity. In addition, ABP says it will look even more closely at the companies in which it wants to invest as part of its due diligence.

Of these impact investments, approximately 10 billion euros will be earmarked for the Netherlands. The organization wants to put 5 billion euros into the Dutch rental housing market.

There are about 3 million participants with ABP, which has assets of more than 500 billion euros. The fund previously announced that it would allocate 30 billion euros for investments in the climate transition until 2030. Of this, 10 billion euros was to be allocated for impact investments.

ABP previously announced that it would no longer invest in fossil fuel projects and businesses in response to pressure from its participants and several high profile organizations. It has already divested from a majority of investments in fossil energy producers and no longer invests in large oil and gas companies, including Shell, BP and Total Energies.