Recent news, papers and blogs
Investing with SDG outcomes
Beyond ESG incorporation: how the SDGs can help investors shape outcomes in the world
PRI Blog, June 15th 2020, with Shelagh Whitley
Long-term investing, IPE May 2020
What can boards and trustees do to accelerate long term investing when economies rebound? The IPE article identifies he best practices to make long term investing a success. The good news: successful long-term investing strategies are within reach for all funds. They can be implemented within the regular investment cycle of pension funds, and boards can make this a success by just making minor adjustments to their process. Simple (governance) steps instead of grand visions do the trick.
A look at designing and implementing long-term pension investment mandates
With any pension investment, plan sponsors must follow the same steps: set a policy, select asset managers and ensure strong governance, monitoring and evaluation. Pension funds can take additional steps to better embed long-term principles throughout the entire investment cycle, according to a working paper by Alfred Slager, a professor of pension fund management at the TIAS School for Business and Society in the Netherlands and a trustee at the country’s Pension Fund for General Practitioners, and Marcel Jeucken, a director at independent advisory firm SustFin.
Article in Canadian Investment Review, January 10th, 2020
Long-Term Investing by Pension Funds - How to Effectively Design and Implement Mandates: a Dutch Case Study
Pension funds are increasingly trying to embed long-term investing choices within their portfolios. Many publications focus on the rationale for long term investing; however, it remains unclear what long term investing actually is, what sets it apart from the current way of investing, and how it should add value. The purpose of this paper is to provide a practical framework for pension fund trustees aiming to bolster and implement long term investing. In doing so, the paper’s contribution is that we choose the trustee’s perspective, build on different existing election and monitoring frameworks, and argue that pension boards have more instruments at hand to implement long-term investing.
Roundtable on climate change and energy transition
Verslag van een rondetafel gesprek in Financial Investigator, December 2019, met voorzitter Marcel Jeucken.
Toepassing langetermijnbeleggen: eenvoudiger dan het lijkt?
Nederlandse pensioenfondsen zĳn bĳ uitstek langetermĳnbeleggers met verplichtingen die reiken tot aan soms wel het eind van deze eeuw. Veel fondsen geloven ook dat hun lange adem hen in staat stelt hogere rendementen te behalen dan beleggers met een kortere horizon en dat, zeker op de langere termĳn, sociale, milieu- en governanceprestaties (ESG) zich ook financieel uitbetalen. Maar wat voor pensioenfondsen natuurlĳk lĳkt, is dat niet voor de financiële markten waar zĳ zich op begeven en de vermogensbeheerders die het pensioengeld beheren.
Pension capital should lead
Major investors must also look at the impact of their own actions on the stability of the financial markets and on the real economy. Pension capital should not follow, but lead, says Marcel Jeucken, PGGM's managing director for responsible investment, in an interview with Financial Investigator.
Launch US Stewardship Principles
Een goede stap naar betere governance cultuur in VS. Grote Amerikaanse beleggers scharen zich achter een aantal principes die zullen bijdragen aan een gezondere cultuur van corporate governance in de VS. De publicatie, op 31 januari 2017, van US Stewardship and Corporate Governance Principles is een memorabele stap in de Amerikaanse corporate governance-geschiedenis. Het is voor het eerst dat in de VS een groep institutionele beleggers zelf principes voor goed aandeelhouderschap en goed ondernemingsbestuur opstelt.
Impact investing measurement
SDG-gerelateerde beleggingen door ‘finance first’ beleggers staat nog in de kinderschoenen. Er zijn allerlei uitdagingen, zoals dat SDG-beleggingen kunnen ontaarden in ‘greenwashing’. Zulke bedenkingen kunnen worden weggenomen door tastbare en vergelijkbare uitkomsten te meten en te communiceren. Met het oog daarop hebben Nederlandse financiële instellingen en bedrijven een beperkt aantal kernindicatoren geselecteerd voor elk van de belegbare SDG’s, met geloofwaardigheid en werkbaarheid als uitgangspunt. De focus ligt op indicatoren die de absolute, positieve impact ‘vastleggen’, voortkomend uit het gebruik van bepaalde producten en diensten (niet zozeer via het productieproces).
Low carbon index
PGGM, the €186bn asset manager for the Dutch healthcare pension fund PFZW, has a low carbon index designed around reweighing and active engagement with the 250 constituent companies. The fund is gradually shifting its passive equity allocation - accounting for 90 per cent of its total equity portfolio - to the index, says Marcel Jeucken, PGGM’s Managing Director of Responsible Investment.
Pensioengeld moet sturend zijn
Voor mijn nieuwe boek, 'Geld stuurt de wereld', sprak ik met verschillende financiële experts. In dit interview: Marcel Jeucken, managing director Responsible Investment bij PGGM, een van de meest verantwoorde pensioenbeleggers ter wereld. Maar Marcel Jeucken is nog lang niet tevreden. ‘We kunnen nog zoveel méér doen.’
Customised benchmarks, absolute return strategies and long-term mandates are all being considered by the PGGM executive team as it implements the new PFZW investment framework. Amanda White spoke to Ruulke Bagijn chief investment officer of private markets and Marcel Jeucken, managing director responsible investment at PGGM about what it really means to be a long-term investor.
Video on responsible investment
This video interview was recorded in New York City on 13 December 2011 during the ESG USA 2011 Conference “Investing for a Sustainable Economy,” organized by Responsible Investor in association with Bloomberg.
Original title and source: “Next up in SRI: proving the societal value of investments”, Marcel Jeucken, www.tias.edu, February 3, 2012.
In passive equities, where 90 per cent of the equities investments reside, about $44 billion in market-cap and smart beta strategies, the dual goals of it’s risk/return profile and responsible investment have been more challenging. But now PGGM has developed an index in house, which measures the 2800 companies in the FTSE All World Index for their environmental and social policy and good governance. The index re-ranks the companies based on these criteria, which also include a minimum threshold.
Culture crucial to integration
Some of responsible investing’s most sophisticated adherents have moved from token aspirations to attempting to imbed environmental, social, governance integration into all their investment decisions. Top1000funds.com talked to Dutch asset manager PGGM and Danish fund ATP, which are both widely regarded as ESG leaders, about how they have integrated ESG into their investment processes. While both funds are considered leaders in the ESG integration, their approaches are somewhat different.
Archived articles, papers and interviews
Reviews on books by Marcel Jeucken
Sustainability in Finance - Banking on the Planet
… ‘Uit het promotieonderzoek van Marcel Jeucken onder 34 van de grootste banken in de
wereld, blijkt dat zij nog een grote slag moeten maken om zichzelf duurzaam te kunnen
Review in Het Financieele Dagblad (in Dutch) Download
Sustainable Finance and Banking - The Financial Sector and the Future of the Planet
"Marcel Jeucken has been heralded as the first to provide a comprehensive and accessible book on the subject of sustainable finance and banking. One does not have to look far to find glowing commentaries that welcome the book as a much needed introduction to the subject...accessible yet intellectually challenging book...to read this book is a must for anyone working in this area of environmental banking whether a practitioner or academic. My recommendation would be look out for his doctoral thesis if this book is anything to go by the thesis should provide a very interesting read."
'Financial institutions are starting to realize there is a business case for sustainable development. They are using eco-efficiency criteria to screen their investments and go beyond what Jeucken calls "defensive banking", which views the environment as a cost only. He offers state-of-the-art thinking on these complex issues and exemplifies the many opportunities and benefits to be drawn from sustainable investment strategies.'
'The issues raised in this book should be in the forefront of our minds. The natural self-interest so characteristic of the financial sector will be enlightened by this book, thereby improving the chances of continuity for each and every firm.'
'A most welcome contribution to the complex debate concerning the role of powerful financial institutions as they consider how best to act on the challenges and opportunities raised by the environmental, social and economic components of sustainability. It will undoubtedly assist UNEP Finance Initiatives to support companies in their efforts to operationalize sustainability while increasing shareholder and stakeholder value. This book will certainly prove to be one of the key contributions to the finance-sustainability interface'
'An interesting view of sustainable banking from inside the sector. It combines countless examples, blueprints and analyses to provide a detailed overview of the trend towards sustainable banking... The author is the first to tackle this subject in such broad and accessible terms, making his book of interest not only to experts in the financial sector or government but also to people with no specialist banking or financial expertise. I have no doubt that this book will inspire many people to take up the challenge of sustainable banking'
'This book is impressive in both its scope and depth and is, to my knowledge, the first major publication which deals integrally with all aspects of sustainability and banking. My compliments go to the author for making the book's structure and content accessible and of interest to readers from the financial community, the environmental movement, business, government and society in general. I sincerely think this book can improve the dialogue within the financial sector and with their stakeholders, and propel many towards a sustainable future'
Sustainable Banking - The Greening of Finance
... an informative and authoritative book which provides insight into the practices of a range
(both in terms of size and geography) of banking organisations ... The contributing authors (as
well as editors) are well known and highly regarded, so the excellent overall standard is no
surprise and it is a book that one can dip into, without the need to read from cover to cover.