Capital with a purpose: how BPL Pensioen is shaping its impact portfolio 

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NAB interviewed Eric Douma, Chair on behalf of employers, to further explore the considerations, governance discussions and implementation process behind the development of BPL Pensioen’s impact investing allocation. The interview below reflects BPL Pensioen’s perspective on the rationale, implementation approach and long-term ambitions behind its impact investing strategy.​​

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BPL Pensioen has set the ambition to build an impact investing portfolio of approximately €1 billion over the next 3 to 5 years, representing around 4% of the total portfolio. Can you walk us through the journey that led to this decision? What motivated it, and how did you build internal alignment and support? 
 
BPL Pensioen’s decision to build an impact investing allocation is a natural next step in its long-standing sustainable investment approach. The fund has historically focused on themes such as climate change, biodiversity, and water within its broader ESG policy and real asset investments (e.g. housing and farmland), which already aim to contribute to a liveable environment. Initially, BPL Pensioen focused on supporting farmers and the agricultural sector by providing capital needed to enable to implement their sustainability plans. Circularity was a central element within this approach. Over time, these priorities evolved into the broader sustainability themes that underpin BPL’s current impact investing strategy. Internally, alignment did not emerge from a single decision moment, but from a longer-term development within the organization. BPL Pensioen has for many years embedded sustainability considerations into its investment approach and has built a culture in which contributing to a more sustainable world is seen as compatible with its fiduciary objectives. This was further reinforced by participant surveys, which showed broad support among beneficiaries for the fund’s sustainability policy and its continued development. 

 

At the same time, there has been a consistent belief that integrating sustainability does not have to come at the expense of financial returns, provided that investment decisions remain disciplined and grounded in a robust investment framework. 

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An important consideration throughout this process was ensuring the integrity and credibility of the impact approach. BPL Pensioen wanted to ensure that any allocation would not only carry the label of impact investing but would also provide sufficient transparency and understanding of the underlying investments and their real-world contribution. 

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The main internal hurdle in moving toward a dedicated impact allocation was of a more practical nature. Implementing impact investing requires exposure to asset classes such as private equity and private debt, where performance-based fee structures are standard. Historically, BPL Pensioen has been cautious about such fee models. Reconciling this preference with the realities of the impact investing market required careful internal discussion and ultimately a pragmatic approach, recognizing that access to these asset classes is essential to achieve measurable real-world impact. 

 

​How did the organisation gain confidence that this allocation to impact is feasible from a fiduciary and risk return perspective, while continuing to deliver strong pensions for your participants? Were there specific analyses, conversations, or experiences that helped shift internal thinking? 

 

BPL Pensioen approaches fiduciary duty as a broader concept than financial performance alone. While delivering a strong and stable pension remains the primary objective, the fund explicitly recognizes that sustainability considerations are inherently linked to this objective. This reflects both the long-term nature of pension investment and the responsibility to consider the environment in which participants will ultimately spend their retirement.  

 

In this context, BPL Pensioen incorporates sustainability through a double materiality perspective. This means that investment decisions take into account both the impact of sustainability factors on financial outcomes (financial materiality) and the impact of investments on society and the environment (impact materiality). This framework provides a structured basis for integrating impact investing into the overall portfolio in a way that is consistent with fiduciary responsibilities.  

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Participant preferences are an essential element in this interpretation of fiduciary duty. Surveys among participants show clear support for the fund’s sustainable investment approach, and these preferences are explicitly embedded in the policy framework as a guiding principle. As a result, fiduciary decision-making is not limited to maximizing financial outcomes in isolation but also includes aligning the portfolio with the values and expectations of participants.  

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At the same time, BPL Pensioen maintains the conviction that responsible and impact-oriented investments can be implemented without compromising long-term risk–return objectives. Sustainability is structurally integrated into the investment process to manage risks, reduce negative externalities, and contribute to long-term value creation, rather than being treated as a trade-off with returns. It is important for BPL Pensioen to build a coherent and credible impact policy over time, rather than moving too quickly toward a predefined allocation target. 

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Finally, as a large, diversified institutional investor, BPL Pensioen recognizes its role as a universal owner. From this perspective, the fund has an inherent responsibility to contribute to the stability and sustainability of the broader economic and environmental system. This reinforces the rationale for impact investing: not only as a source of financial return, but also to help ensure that participants can enjoy their pensions in a liveable and sustainable world. 

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​Alongside financial objectives, your communication highlights that participants expect both a good pension and a contribution to a liveable world. How have participant preferences influenced this decision, and how do you engage and communicate with beneficiaries about impact investing in practice? 
 
Participant preferences are an important driver behind BPL Pensioen’s approach to impact investing. The fund conducts periodic participant surveys to understand expectations and support for its sustainability policy. These surveys show that there is broad backing among participants for integrating sustainability into the investment approach.  

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This input is embedded structurally in the policy framework. Alongside the double materiality analysis, participant preferences form a key foundation for determining priorities within the responsible investment policy, ensuring that investment choices reflect both financial considerations and the values of participants.  

Engagement with participants does not stop at surveys. BPL Pensioen actively communicates about its sustainability policy and impact ambitions through multiple channels. The fund regularly publishes updates on its website and in its pension magazine and provides transparency through its annual responsible investment report. This reporting covers policy choices, progress, and outcomes, allowing participants to stay informed and hold the fund accountable.  

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In this way, participant preferences are not only a one-off input into policy development but are continuously incorporated through ongoing dialogue and transparent reporting. This strengthens the legitimacy of the impact investing strategy and ensures that it remains aligned with the expectations of BPL Pensioen’s beneficiaries. 

 

​You indicated that your impact portfolio will be built gradually over the next 3-5 years by reallocating capital step by step from your existing portfolio. How does this phased approach fit within your broader investment strategy, and how do you  monitor progress toward your impact target along the way?  
 
The impact portfolio is built gradually by reallocating capital from the existing portfolio. This phased approach serves several objectives: 

• It allows for controlled portfolio construction in a relatively young and evolving market. 

• It enables learning and refinement of the strategy during implementation. 

• It mitigates risks associated with concentration or premature scaling. 

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Progress is monitored through a structured pipeline of investments, regular reporting, and ongoing evaluation within governance bodies. The use of a formal selection framework and documentation of investment decisions further supports monitoring and accountability. With impact investing still being a developing and evolving investment landscape, BPL Pensioen is aware that building a high-quality portfolio requires time, careful manager selection and continuous learning during implementation. 

 

​As you move toward allocations, what have been the main enablers so far, and where do you still see challenges or open questions?  

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Key enablers: 

• A clearly defined impact selection framework with required and desirable criteria.  

• Strong collaboration with Mercer (investment execution) and Cardano (oversight).  

• A structured governance process involving the Investment Committee. 

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Key challenges: 

• Limited availability of mature funds with sufficient track record in impact investing. 

• Difficulty in assessing impact ex ante, as many funds are still in early stages and rely on qualitative assessments rather than hard data.  

• Potential tension between strict selection criteria and maintaining a sufficiently broad investment universe. 
   

What internal processes, teams, or governance structures are now in place to support implementation? In particular, how does the collaboration with Mercer Cardano support both investment selection and impact measurement oversight? 

 
The governance model is clearly structured: 

• Mercer is responsible for sourcing, selecting, and executing investments. 

• Cardano acts as impact oversight manager, ensuring alignment with BPL’s objectives and providing independent review.  

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The investment process includes market screening, initial assessment, discussion in the Investment Committee, and full due diligence before final approval.  

This separation of roles strengthens governance, oversight, and transparency in both investment decisions and impact measurement. 

 

​You position impact investing as a next step within a longstanding sustainable investment approach, including exclusions, engagement, and investments in housing and farmland. How does the new impact portfolio build on and differ from these existing activities? 
 
The impact portfolio builds on BPL Pensioen’s existing ESG approach but differs in several important ways: 

• It focuses on intentional and measurable impact, rather than broader ESG integration. 

• It requires explicit impact KPIs and alignment with defined themes.  

• It emphasizes that impact should be intrinsically linked to the business model of underlying investments, reducing the risk of impact-washing.  

 

This makes the impact portfolio more targeted and outcome-oriented compared to traditional sustainable investing tools such as exclusions and engagement. 

 

You have identified climate, biodiversity, and water as core themes. How did you select these themes, and how do they connect to your sector focus and participant base? 
 
BPL has identified climate, biodiversity, water, and financial services as its core impact themes. These themes are consistent with: 

• Existing sustainability priorities within the fund. 

• Areas where measurable real-world impact can be achieved. 

• Topics that are recognizable and relevant to participants. 

 

To ensure focus, selected funds are required to allocate a substantial share (typically 60–70%) of their portfolio to these themes.  BPL Pensioen also believes that sustainability and biodiversity considerations will continue to remain highly relevant within the European context over the long term, providing further support for maintaining these themes as strategic priorities within the portfolio. It is fundamental to collaborate among the pillars of capital, knowledge (science), and policy, to be able to deploy meaningful investments across these themes.  

 

Moreover, according to BPL Pensioen’s experience, especially for certain themes, it is key to have an approach that takes into consideration the whole lifecycle of a product. Circularity is not only about investing in the final product itself, but also in the broader supply chain and infrastructure that enable the final product to become sustainable. 

 

Your implementation strategy focuses on private debt and private equity, with a strong emphasis on direct investments. What informed this decision, have you also considered public market strategies and how does this approach enable you to gain influence and insights from portfolio companies in practice? 
 

The strategy focuses mainly on private debt and private equity. This choice reflects: 

• The ability to directly finance impactful activities and projects. 

• Greater influence on investment decisions and company behaviour. 

• Better alignment between financial returns and impact objectives (e.g., through impact-linked incentives).  

 

Public market strategies were considered, but private markets are better suited for achieving measurable and additional impact. 

 

Your approach includes both domestic and international opportunities, including emerging markets. What role do emerging markets investments play in achieving your impact goals, and how do you balance these with investments closer to your participants, such as Dutch farmland and housing? 
 
The portfolio primarily focuses on Europe, with flexibility to invest globally, including emerging markets. This approach reflects: 

• Participant preference for investments close to home. 

• The need to access a broader opportunity set to achieve impact objectives. 

• Recognition that emerging markets can offer significant additionality and impact potential. 

 

Balancing these elements allows BPL Pensioen to combine local relevance with global impact opportunities. 

 

Do you see your current allocation as a first step in a longer-term journey? Under what conditions could impact investing play a larger role within the overall portfolio in the future? 
 
The current allocation is clearly seen as a first step in a longer-term journey. Future expansion will depend on: 

• Availability of high-quality investment opportunities. 

• Demonstrated ability to achieve both financial returns and measurable impact. 

• Further maturation and standardization of the impact investing market. 

 

The framework is intentionally designed to evolve over time as the market develops and as BPL Pensioen gains experience. BPL Pensioen also sees value in continuing the broader dialogue with policymakers and governments on how institutional capital can contribute to long term sustainability transitions.