NETHERLANDS - A considerable number of Dutch
pension funds are still
investing in weapons, such as landmines, cluster ammunition and nuclear
weapons, according to a pressure group. “Some schemes seem to be deaf
to the wish of society for a change of
policy,” said the Dutch Campaign against Arms Trade (CtW) in an interim
report about the progress of pension fund divestment from
armaments.
Its survey comes just over a year after television program Zembla
revealed Dutch pension funds had invested nearly ¤300m in US companies
which also manufacture landmines and cluster bombs. The program
triggered
a broad debate among pension schemes and their participants.
According to CtW, many pension funds have formulated an exclusion
policy,
albeit often limited to some types of arms, mainly anti-personnel mines
and cluster ammunition. “Although investments in some of the most
controversial companies, such
as Lockheed Martin and Raytheon, have fallen considerably, there are
still many investments left in the weapons industry, such as in
companies
involved in nuclear arms and ammunition containing depleted uranium,”
it
said. “In addition, companies which supply countries involved in armed
conflicts or are violating human rights, have hardly been
excluded.”
According to CtW, the ¤88bn healthcare scheme Zorg & Welzijn,
formerly known as PGGM, has made most progress in developing a
responsible investment policy on arms trade. The schemes of union FNV
and Rabobank have also distinguished themselves
in a positive way, it added.
In its report, the pressure group mentions the ¤19bn scheme of oil
giant
Shell and the ¤4.9bn pension fund of chemicals company Akzo Nobel as
examples of schemes which have yet to develop an exclusion
policy. However, Stichting Shell Pensioenfonds (SSPF) very recently
announced on
its website an extension of its responsible investment policy with
social
and environmental aspects. It has contracted Hermes Equity Ownership
Services, which has entered a
dialogue with companies seen as involved in the manufacture of
landmines.
A survey is also carried out to make clear which companies are involved
in the production of cluster bombs, the Shell scheme said.
“Although this is a step in the right direction, SSPF hasn’t clearly
distanced itself from the controversial weapons yet,” commented Frank
Slijper, spokesman of CtW, to IPE. The Akzo Nobel pension fund is about
to implement an exclusion policy
aimed at banning all investments in producers of landmines, cluster
bombs, biological, chemical and nuclear weapons from its entire
portfolio, indicated Bob Puyn, CIO of asset manager Syntrus Achmea –
the
firm managing its assets.
“At the moment, we are consulting our external managers on an
implementation date,” he added.
Albert Akkerman, chief executive of the ¤12.1bn SPF railways scheme,
disagreed with CtW’s conclusion arguing his organisation is very slow
in
implementing its exclusion policy. “We not only disinvest in
controversial companies, but also cancel
related loans and lease contracts for SPF-owned property. This takes
extra time,” he pointed out. “On the other hand, we also invest in
positive projects, such as a factory in Mali for the production of
biodiesel from the non-food plant jatropha.”
ABP, the ¤216bn civil service scheme, acknowledges it still invests in
nuclear arms and weapons that include depleted uranium. “We have
decided to base our current policy on Dutch and international
law to have a clear reference point,” said ABP’s spokesman Thijs
Steger. He stressed CtW’s report noted ABP is the only scheme offering
full
transparency on policy, exclusions, investments in general and voting
behaviour at shareholders’ meetings.
CtW advocates an investment policy which excludes manufacturers of
landmines, cluster ammunition, nuclear arms and weapons including
depleted uranium, as well as companies with a turnover from military
production of over 5%.