Friday Funds: Philips Pensioenfonds aligns €370m EM equity portfolio with SDGs

Dutch pension fund Philips Pensioenfonds has collaborated with index provider Qontigo and BlackRock to align its €370 million emerging markets equity portfolio with several SDGs. The mandate, managed by BlackRock, tracks the iSTOXX PPF Responsible SDG Emerging Markets Index, a custom equity benchmark. The index overweights emerging market securities that positively contribute to SDGs 3, good health and wellbeing; 11, sustainable cities and communities; 12, responsible consumption and production; and 13, climate action. In addition, the methodology excludes companies that are obstructive to these SDGs, while targeting a carbon intensity reduction of 30 percent compared with its benchmark.

The equity portfolio represents around 2 percent of the pension fund’s total assets. The move follows the pension fund’s steps in 2021 to align its €4.5 billion developed markets equity portfolio – then almost 20 percent of its assets under management – to the same four SDGs, also in collaboration with Qontigo and BlackRock.

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