DNB launches its new sustainable finance strategy. Five questions about the impact on the economy, the financial sector and consumers.Read more
By making our investments more sustainable we contribute to a sustainable economy. In our investment policy, we emphasize climate change. That is why we started investing in green bonds.
DNB has its own reserves. For example, shares and bonds. For these, we apply a socially responsible investment policy. In our investment choices, we take sustainability into account. Such as the financial risks of climate change. This is how we want to use our investment to contribute to a sustainable economy. The size of our investment portfolios is too modest to bring about major changes. But we do want to set a good example and thus contribute to the sustainability of the entire financial sector. That is what really carries weight. Read more about our reserve management.
Investment policy – ESG
Sustainable investment is based on ESG criteria. ESG stands for Environmental, Social and Governance. Based on these criteria, we measure the sustainability of an investment. The inclusion of ESG criteria is one of the pillars of our sustainable and responsible investment policy (see infographic). Read more about our policy in our Responsible Investment Charter.
The five pillars of our sustainable investment policy
No Controversial weapons
We apply a filter to our investment and our (potential) counterparties to ensure that they meet our ESG criteria. This means that we do not invest in companies engaged in the production of cluster munitions, landmines or chemical, biological and nuclear weapons insofar as they violate the Treaty on the Non-Proliferation of Nuclear Weapons. We also want our counterparts to adhere to certain internationally applicable ethical standards, such as the United Nations Global Compact principles. Therefore, we screen these parties on the basis of such standards.
Investing in green bonds
In recent years, we have been investing more in green bonds. These bonds for example stimulate investment in energy efficiency improvements. At the beginning of 2021, DNB had approximately € 320 million in green bonds. Our intention is to invest a further € 80 million in green bonds this year. This is how we want to contribute to greening the economy, which is necessary to achieve the targets of the Paris Climate Agreement.
Purchase programmes at a European level
DNB aims to make its own financial reserves more sustainable. In addition, we participate in the ECB's large-scale purchase programmes. In doing so, we follow the their policy. In July 2021, the ECB decided to further incorporate climate change considerations into its monetary policy framework. This means that the they will take climate change criteria more into account when purchasing corporate bonds. They will also consider them in their risk assessment and collateral framework. Read more about the ECB's action plan to include climate change considerations in its monetary policy strategy.
Purchasing programmes at European level
DNB aims to make its own financial reserves more sustainable. In addition, we participate in the ECB's large-scale purchase programmes, through which we buy bonds and government paper. In doing so, we follow the ECB’s policy. Sustainability is not a criterion. But the ECB is now reviewing its monetary policy strategy. This concerns several issues, including the risks of climate change. DNB participates in this review and we are committed to greening our purchases at European level. Read more about the monetary strategy review.
Sustainability high on the agenda – PRI
DNB is committed to promoting financial stability and sustainable prosperity. That is our mission. Climate change threatens our prosperity and stability. Sustainability is therefore high on our agenda. To underline this, we were the first central bank to sign the Principles for Responsible Investment (PRI) in 2019. This enables us to strengthen our investment policy and improve our accountability. Read more about the significance of the PRI for our policies and reports.
Sustainability: development and cooperation
We are constantly improving our responsible investment. In doing so, we value collaboration and partnership, because we are facing major challenges. And far more is needed: more research, measurement methods and data. We work together with other central banks, supervisors and the financial sector. We do so at a national and international level. For example, we are one of the pioneers of the international Network for Greening the Financial System (NGFS). We also initiated the Platform for Sustainable Finance. Read more about the development of sustainable finance and our cooperation with other parties.
Podcast on sustainable investment
Want to know how we put sustainable investment into practice? Our colleagues Lisanne and Rianne explain this to you in the podcast.
Effective investment in the United Nations’ sustainable development goals hinges on the possibility to measure the impact of such investments.Read more
De Nederlandsche Bank (DNB) calls for climate investment to be scaled up. The lion's share of that investment will need to be made by private parties, while governments must create favourable conditions by pursuing appropriate climate policies.Read more