NETHERLANDS - Dutch pension funds ABP and PGGM have awarded a €500m mandate to their joint investment vehicle AlpInvest Partners, to invest in clean technology.
The mandate has been issued from 2007 -2009 with the possibility of extending it to 2010.
ABP and PGGM will each commit €250m to the mandate, which is the first joint instruction on sustainable investment in unlisted companies for the two funds.
As a result, Alpinvest will select companies mainly in Europe and the US covering innovations in products, services and processes with a low environmental impact as a result of efficient use of raw materials and energy.
Thijs Steger, a spokesman for the ABP fund, said the portfolio decided to invest in clean technology because it should deliver good returns in the future.
Steger said: “These kinds of companies correspond to our environmental and SRI policy. That also helps to lower the investment risk.”
In a separate development, Steger said ABP had signed a letter to the G8 delegates, as part its membership of the Institutional Investors Group on Climate Change (IIGCC).
In a separate development, Global Pensions recently revealed that ABP’s investment in timber is set to grow.
The asset class has seen rapid growth in Europe with several funds including Sweden’s Kapan Pensioner, the London Pension Fund Authority (LPFA) and Denmark’s BankPension making allocations.
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