Sustainable investment policy
At BeFrank, you invest your pension capital for the future. We do not do this lightly. After all, a pension is not just about money, it is also about the world you will live in later on. That is why we consciously choose a sustainable approach. In the long term, this does not have to come at the expense of the expected return. In this way, we aim to contribute to a liveable future as well as a good pension.
On this page, you can read how we invest sustainably and which instruments we use to do so. Our sustainable investment policy forms part of our overall investment policy. Would you like to learn more about our strategy, returns and risks? Then please also read our investment policy.
Our 4 principles
Sustainability is constantly evolving. Legislation changes, as does society and the way companies operate. That is why we have defined four fixed principles. These form the foundation of our sustainable investment policy.
- Sustainable investing does not have to come at the expense of returns in the long term
We believe that sustainable investing does not have to reduce expected returns in the long term. It is also a form of risk management, as companies can be better prepared for the future. - We use all available instruments in an appropriate way
We use a range of instruments to invest sustainably. The instruments we apply vary by type of investment. Below, you can read how we do this. - We invest in line with our ESG standards
In our investments, we take our ESG standards into account. This means we do not invest in companies, sectors or countries involved in controversial behaviour or activities. - We offer freedom of choice in sustainability
As preferences for sustainable investing differ, you can decide for yourself how sustainably you invest. Each investment option has a different sustainability ambition.
What does ESG mean?
ESG stands for Environmental, Social and Governance. These are some of the elements that are important when assessing sustainability.
Do you have the option of to Do It Yourself investing?
If your pension scheme offers the option to Do It Yourself Investing, it is important to know that this investment style does not have a sustainability ambition or objectives. For that reason, Do It Yourself investing does not form part of our sustainable investment policy. However, for do‑it‑yourself investors, we do offer, where available, funds with ESG integration and impact funds.
Sustainability ambition
We believe it is important to provide insight into our key sustainability objectives. Our aim is for our investments to be demonstrably more sustainable than the benchmark. Our highest priority is to combat climate change, and wherever possible we aim to contribute to the Paris Climate Agreement. We focus on the following indicators:
- ESG score
The ESG score shows how companies perform in terms of environmental impact, social policy and governance. The higher the score, the more sustainable and future-proof the investments are considered to be. With our investments, we aim to achieve higher scores than comparable funds. - CO₂ emissions
With our investments, we aim to achieve lower CO₂ emissions than the benchmark. For equities, we have a strategy aimed at reaching net-zero CO₂ emissions by 2050. In doing so, we take into account that this should not come at the expense of the investment risk and return profile. - Non-recyclable and hazardous waste
With our investments, we aim to produce less waste than the benchmark. It is important to note that we monitor this indicator, but do not directly steer our investments on this basis. We expect waste production to be lower as a result of our sustainability criteria.
What is a benchmark?
A benchmark is a type of reference point used to compare performance. For example, we compare the CO₂ emissions of investments with and without sustainable choices. For the benchmark, we use external data from MSCI. MSCI is an independently recognised provider of financial data.
Our ambition by investment style
To achieve our sustainability objectives, we use various instruments. Each style of investment has its own sustainability ambition and a different use of instruments. The overview below sets out the key differences. Would you like to know more about how this works for each instrument and investment type?
| Instruments | Passive investing | Active investing | Sutainable investing |
|---|---|---|---|
| Exclusion | + | + | +++ |
| Positive selection | + | + | +++ |
| ESG integration | – | + | +++ |
| Impact investing | + | ++ | +++ |
| Active ownership | + | + | +++ |
| Sustainability ambition |  Sustainable |  More sustainable |  Most sustainable |
The 5 instruments for sustainable investing
Below, we briefly explain how we apply the different sustainability instruments:
- Exclusion – where we deliberately do not invest
We do not invest in companies, sectors or countries involved in controversial behaviour or activities. We apply this approach based on the standards and frameworks we adhere to, including the United Nations Global Compact, the UN Principles for Responsible Investment, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and International Responsible Business Conduct.
We exclude companies that violate human rights. We also do not invest in producers of controversial weapons or in the tobacco industry. In addition, we avoid companies that produce or use the most polluting forms of fossil energy.
See which activities and countries we exclude. - Positive selection – where we choose to invest more
With ‘positive selection’, we choose to invest more in companies that perform well on sustainability. In doing so, we look not only at financial results, but also at how companies treat people and the environment. For example, a company that actively works to reduce its CO₂ emissions. - ESG integration – investing with consideration for environment, people and governance
In ESG (Environmental, Social and Governance) integration, we systematically incorporate ESG information into our analysis and investment decisions. This helps us reduce risks and identify opportunities that sustainable companies often offer. For example, we assess how vulnerable a company is to climate risks or what decisions it makes for its employees. - Impact investing – creating measurable impact
With impact investing, we choose investments that make a measurable contribution to society and the environment. Examples include green and social bonds, through which we invest in energy projects or social housing.The more sustainable the investment style, the larger the share of impact investments. For Passive investing, the target is at least 10% in impact investments. For Active investing this is at least 20%, and for Sustainable investing at least 80%. - Active ownership – exercising influence
We use our position as an investor to influence companies on sustainability themes. Our asset managers do this by voting on our behalf at shareholder meetings and by engaging in dialogue with companies. Sustainalytics (an external service provider acting on behalf of BeFrank) engages with companies for us. For example, to encourage clear climate targets and reduce CO₂ emissions.
Read more about active ownership.
Insight into sustainability
We believe it is important that you have insight into our sustainable investment activities and what they mean for your investments. We do this as follows:
- Insight into your sustainability impact
In ‘My Sustainability impact’ on your personal pension page, you can see the impact of your investments. This dashboard shows your ESG score, CO₂ emissions and the production of hazardous and non-recyclable waste. We also show the difference compared to the benchmark, which does not include sustainable choices. For employers, the sustainability impact of the entire pension scheme is available in the employer portal.
Learn more about the Sustainability impact dashboard. - Active ownership reports
We publish annual reports (from 2025 onwards) on our voting behaviour. In addition, from 2025 we report quarterly and annually on the topics that Sustainalytics discusses with companies on our behalf. This allows you to see exactly how we use our influence.
View the reports. - Sustainable Finance Disclosure Regulation
BeFrank falls under the European Union’s Sustainable Finance Disclosure Regulation (SFDR). The aim of this regulation is to make it more transparent how financial institutions incorporate ESG risks and opportunities into investment decisions.
Here, we show the realised percentages for impact investing. In 2025, this was 38% for Passive investing, 43% for Active investing and 93% for sustainable investing.
Read our page on the Sustainable Finance Disclosure Regulation.