PGGM manages this asset class for PFZW. The allocation to interest rate products is a significant part of our balance sheets.
The primary goal for the interest rate investments is to provide a low-risk interest rate hedge for the interest rate sensitivity present in pension fund’s liability structures.
There is limited scope for ESG integration when investing in low-risk interest rate products with a primary risk management focus. Examples of these products are AA(A) government bonds and interest rate derivatives. PGGM Rates’ objective however is to be a best-practice investor with regards to ESG within the strict boundaries defined for the client mandates.
In addition the team considers opportunities to invest in green bonds following PGGM's internal green bonds framework to asess the atractiveness.