BP and PGGM, the two largest pension schemes in the Netherlands and two of the largest in the world, have awarded their joint venture private equity investment manager AlpInvest a 500 mln eur mandate to be invested clean technology.
The two schemes announced their first joint investments for sustainable investment in unlisted companies in a statement, adding the mandate is one of the largest ever placed on the international private equity market. The mandate has been issued for a period of three years from 2007 to 2009 with a possible extension to 2010.
ABP and PGGM will each make 250 mln eur available for that period, in addition to existing investments in sustainable applications by both pension funds.
AlpInvest will select companies mainly in Europe and the United States, covering innovations in products, services and processes with a low environmental impact as a result of efficient use of raw materials and energy.
Else Bos, CEO of PGGM Investments said: “This mandate is a great fit with our sustainable investment policy. Our investment decisions specifically address factors relating to the environment, social conditions and good management.”
“We are sure that investing in innovative, clean technology will deliver both a financial and an environmental return. This is closely in line with the wishes of our members,” the CEO added.
Roderick Munsters, director of ABP Asset Management said,: “We are investing in clean technology and renewable energy as we expect that they will provide good returns in the next few decades.”