On September 1, 2014 PGGM had EUR 178 billion in assets under management. The PGGM cooperative has approximately 675,000 members and “is helping them to realize a valuable future”(PGGM’s mission). Either alone or together with strategic partners, PGGM develops innovative future provisions by linking together pension, care, housing and work.
Circularity suits PGGM very well. An economy that continues to be based on linear principles is not sustainable and will have a negative impact on a valuable future.
A circular economy is an ideal concept for the realisation of multiple value creation; besides financial value, there is also attention to social and ecological values. Special attention must also be focused on making the financial economy serve the real economy. Here too the component of PGGM’s conduct is crucial.
PGGM wants to incorporate circularity in its sustainability policy.
In terms of the four pillars of sustainability, this means:
- A sustainable system for retirement: the transition of the labour market, in relation to working longer, retaining value such as social capital, knowledge and experience;
- Impact of the invested assets: it encourages the circularity of businesses through our investments
- Helping members to live sustainably: PGGM contributes by sharing knowledge on circularity, via our product range, for instance.
- It does business sustainably: fighting waste in business operations.
PGGM’s aim is to be able to contribute to the transition to a circular economy focussing on finance as an enabler in that transition.
Therefore, amongst other programmes, PGGM is establishing the subgroup Finance within the CE100. This group consists of various financial institutions and will be chaired by PGGM.
Ambition of the subgroup is twofold: first of all to adapt to the new business rules, because the circular economy impacts on the financial structure within businesses and secondly to contribute to the acceleration towards a circular economy.
To start with this important work, PGGM sets the following goals:
(1) to understand, (2) execute and (3) disseminate. Therefore in order to achieve these goals, it needs knowledge of the role of money and changes in doing business, a circular scan and circular toolbox and engagement with financial players.