Pensioenfonds PGB, Amstelveen, Netherlands, hired Osmosis Investment Management to run a third of the pension fund's equity investments in a resource efficiency strategy, a spokeswoman confirmed Monday.
The move follows the Dutch pension fund's decision to approve a new climate action strategy in 2022, which specified its 2030 climate objectives.
PGB allocated about one-third of its public equity portfolio in the Osmosis' resource efficiency strategy. PGB had €34.8 billion ($38.8 billion) in assets as of March 31, with 46% of all of its assets invested in equities.
The portfolio covers equity investments in North America, Europe and the Asia-Pacific region.
The switch to the Osmosis strategy, which has been tailored to Pensioenfonds PGB requirements, will directly contribute to the pension fund's 50% carbon-reduction target and will have a positive impact on water consumption and waste creation, the fund said in a statement.
Osmosis targets a better risk-adjusted return through overweight exposures to resource-efficient companies and underweight exposures to inefficient companies, aiming to deliver a reduction in carbon.