Netherlands

In its early days, savings - rather than investment - took predominance in SRI in the Netherlands. In 1960, the ASN Bank was founded followed by the Triodos Bank in 1980. Both brought savings products to the Dutch market. They are still market leaders in the ethical savings sector.

As a traditional savings-oriented country, it took until 1991 before the first SRI fund - the ABF (translated as the "Other Investment Fund") - started. Since that time, SRI has grown rapidly. At this moment (April 2006) there are approximately 31 SRI funds available in the Netherlands.

In 1995, the Dutch Tax Office introduced the 'Green Savings and Investment Plan'. This makes very strictly green investment categories (such as wind energy, solar energy, and organic farming) attractive. Since 1996 these savings and investments have grown to account for 50% of all socially responsible savings and investments.

As the importance of SRI started to grow, the importance of shareholder engagement also gained importance. SRI funds and private investors did not only want to invest well, they also wanted to pose questions and raise their voices as shareholders. In 1995, institutional and private socially responsible investors organized themselves as the VBDO (translated in English as the Association of Investors for Sustainable Development).

Since 2000, SRI funds have continued to be successful, social awareness is on the rise, and socially responsible companies are projecting ever-better long-term performance. As a result, pension funds have started showing a growing interest in SRI and are starting experimental portfolios and shareholder engagement.

At the end of 2004, more than Euro 8,3 billion in savings and investments had earned the seal of social responsibility, of which Euro 2.5 billion were investments. Since 1987, both SR Savings and SR Investments have gained market share relative to total Dutch savings and investments. SR Savings account for almost 2.9% of all savings and SR Investments account for more than 2.5%.

Some facts about the NL market:

  • SRI Market Size (private investment funds): 8.2 billion at the end of 2004
  • SRI Institutional Market Size: 3.3 billion at the end of 2004
  • Influential actors: VBDO, ethical banks, rating agencies, asset managers, NGOs, government
  • Leading Strategies: best-in-class screening, engagement
  • Number of funds: in 2004 - 23 ethical funds, 12 fiscally facilitated green and social-ethical funds
  • Legal Milestones: 1995 – Green Savings and Investments Plan
  • SIF (yes/no): Yes, VBDO since 1995

For more information on SRI in the Netherlands please visit their web site: www.vbdo.nl