Stichting Pensioenfonds ABP, the €458bn Dutch pension fund for government and education employees, has created 10 principles on tax responsibility, raising expectations for portfolio companies in a governance area of growing importance.
The Principles for Responsible Investment (PRI) has been promoting the topic among signatories recently, taking the view that responsible tax is a material ESG issue. As the Covid-19 pandemic forces governments to inject taxpayer money into entire sectors of the economy, tax scrutiny of portfolio companies is becoming a stronger focus for responsible investors.
ABP’s principles state that responsible tax behaviour fits within the broader scope of the fund’s investment beliefs and that it is committed to responsible tax planning, meaning that the letter and spirit of tax laws should be taken into account in line with the OECD's principles.
The pension fund said the principles have been penned by the board an…