Pensioenfonds Metalektro (PME) is the Dutch mandatory pension fund for the Dutch metal industry. PME administers pensions for more than 1,300 companies and approximately 147,000 participants.[i] At the end of 2015, PME held over USD40 billion in assets under management.[ii]
One of PME’s ten Principles for Responsible Investing states that PME will not invest in companies involved in products that breach international agreements that the Dutch government has signed.[iii] Consequently, PME excludes companies that produce nuclear weapons in violation of the Non-Proliferation Treaty. However, this also means that PME does not exclude companies that produce nuclear weapons for the five recognised nuclear armed countries under the treaty.[iv]
PME outsources the management of its portfolio to its asset manager MN. PME requires MN to apply the exclusion policy to all the investments that it manages on PME’s behalf. These investments consist of discretionary mandates and one actively managed fund. An exception is made for some pooled vehicles or derivatives that date back to before PME’s Responsible Investment-policy was implemented.[v]
PME maintains a publicly available exclusion list, which is based on the findings of data provider Sustainalytics.[vi] As of the fourth quarter of 2016, PME excludes Larsen & Toubro, L&T Finance; L&T InfraStructure Finance; and Walchandnagar Industries for involvement in nuclear weapons.[vii]
We commend PME for adopting a public policy on nuclear weapons. We recommend PME apply its policy to all nuclear weapons associated companies regardless of their country of origin. In addition, PME should comprehensively apply the policy to both past and future investments. We look forward to engaging with PME, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
Pension fund PME’s policy on nuclear weapons is leaky; send them a message and tell them to fix it!
To send PME a message, please go to this contact form:
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You can write your own message, or copy this message into the contact form.
Congratulations PME. I saw on www.dontbankonthebomb.com that you have a policy limiting investments in nuclear weapons. I think it’s really important that you share my concern about these weapons, and I appreciate that there is a public policy.
However, the policy does have some loopholes and the Don’t Bank on the Bomb report shows how you still might invest in nuclear weapons producers. I am concerned about this, because PME also invests my money and I don’t want to be associated in any way with the production of these inhumane weapons.
It would be great if PME made the following changes to make the policy airtight:
• Apply the policy to all nuclear weapons associated companies regardless of their country of origin;
• Comprehensively apply the policy to both past and future investments.
With kind regards,
[ii] PME, “PRI reporting framework 2016”, available at https://www.metalektropensioen.nl/client/pme/upload/downloads/Downloads%20Over%20PME/UITSLUITINGSLIJST_PME.pdf, viewed 30 October 2016.
[iii] PME, “De tien PME-principes voor verantwoord beleggen”, Principle 4, available at https://www.metalektropensioen.nl/client/pme/upload/downloads/Downloadspagina/English/VB0334E.pdf, viewed 30 October 2016.
[vi] PME, written response to PAX dated 30 April 2015.
[vii] PME, “Uitsluitingslijst/Exclusion List”, valid during 4th Quarter 2016, website PME (https://www.metalektropensioen.nl/client/pme/upload/downloads/Downloads%20Over%20PME/UITSLUITINGSLIJST_PME.pdf), viewed 30 October 2016.