Implementing the agreement
A coalition of pension funds, the Federation of the Dutch Pension Funds, trade unions, non-governmental organisations (NGOs) and the Dutch government have concluded the agreement in order to prevent, mitigate and/or remedy negative consequences on society and the environment resulting from investments by pension funds, with no risk being excluded in advance.
The participating pension funds and parties have undertaken to take measures individually and to work together to seek solutions to abuses that occur in the investment chain of pension funds and that the pension funds cannot solve on their own.
In this agreement, parties seek to cooperate to create a more sustainable society. This concerns both practical and legal possibilities, as well as the responsibility of the Dutch government under the OECD guidelines and the UN Guiding Principles on Business and Human Rights (UNGPs). By cooperating, parties gain a clearer understanding of the risks and can take action to address them. They will work together on solutions and hold each other to account regarding agreed objectives.
All the pension funds that have signed the agreement undertake to integrate the OECD guidelines and UNGPs into their policies and practices. The OECD guidelines and UNGPs prescribe that companies – and pension funds – should find out to what extent they are involved in abuses in the areas of human rights and the environment. This approach is referred to as ‘due diligence’. In the first year, the parties will develop instruments (a toolkit) that will help pension funds perform due diligence.
Independent Monitoring Committee
Following the baseline measurement, an independent Monitoring Committee monitored once a year the progress made by the parties in carrying out the agreed activities, based on the principles of reasonableness and fairness.