Sustainability risks

One such disclosure is an estimate of relevant sustainability risks – or a sustainability rating – to inform investors about sustainability risks. Here, we align ourselves with the methodology prepared by sponsor Robeco for this purpose. The methodology provides a classification for sustainability risk and for climate risk.

The sustainability risks are rated from very low to medium for the Robeco investment funds. The PIMCO Emerging Markets Local Bond Fund’s risk assessment is rated as high. This is directly due to the asset class. The transit risk estimate is between very low and medium. The Sustainable Global Stars Equities mutual fund scores the lowest here with very low. Looking at physical risks, the two most important weather scenarios are ‘extreme heat’ (developed equity funds) and ‘coastal flooding’ (all other mutual funds).

In early 2024, the ESG self-assessment conducted by the fund in 2023 was discussed with DNB. This as part of the roadshow they did following feedback from pension fund self-assessments. DNB is positive about the approach taken by the fund. DNB also conducted a survey of the entire pension sector on ESG risks through a self-assessment in 2024. Following this survey, DNB expressed its concerns that many funds do not have sufficient visibility on ESG risks. Four in 10 pension funds have yet to start identifying ESG risks or have only started doing so, DNB said.