The Dutch pension fund managers PGGM and APG Asset Management have done much of the leg work for other investors wishing to align their investments with the sustainable development goals (SDGs). The two investors are finalising a highly detailed process that identifies classifications where they see potential sustainable development investment (SDIs) opportunities that could transform the United Nations’ targets into tangible returns for institutional investors.

The result is investment opportunities linked to 13 of the UN’s 17 SDGs, and they are well on their way to integrating SDIs in the portfolio across all asset classes.

The managers, which invest a combined €600 billion ($705 billion) say these investments can fulfill the risk return requirements of their clients and provide a substantial and measurable contribution to one or more SDGs. Last year, APG achieved returns for its main clients, the $448 billion civil service scheme ABP and the $63 billion scheme for the building sector, BpfBouw, of 9.5 per cent and just over 8 per cent respectively.

“This is an important step towards developing a common language and moving from broad understanding of the investment principles to actual rules,” says Claudia Kruse, managing director sustainability and corporate governance at APG.