Former APG executive Prisco Battes has warned that the pension manager’s focus on sustainable investing is leading to significant financial drawbacks, describing the outcome as “drama” for the Dutch pension fund ABP.
According to Battes, the emphasis on environmental, social and governance (ESG) criteria has caused APG to miss out on billions in potential market gains, with the scale of lost returns comparable to the state aid distributed during the 2008 financial crisis.
He argues that the current sustainable investment strategy is not delivering the expected results and may even be producing negative consequences for the fund’s performance and the financial stability of the pensions it manages.
The criticism comes amid a broader European discussion about balancing climate ambitions with fiduciary responsibilities, particularly regarding how investment decisions affect long-term pension outcomes.
Battes, known for his outspoken views on pension fund management, says his assessment is based on his experience and analysis of APG’s portfolio, suggesting that the prioritization of sustainability is coming at the expense of investment returns.
While the specific nature of the challenges he references was not detailed in the reports, the implication is that underperformance in sustainable holdings could eventually lead to lower pension indexation, higher contributions, or adjustments to benefit payouts.
The debate highlights ongoing tensions between ethical investing goals and the obligation to secure reliable returns for retirees and active participants in one of the Netherlands’ largest pension schemes.
