Green Promises or Greenwashing? Assessing the Environmental Alignment of Dutch Pension funds
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2025-07-07
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en
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As climate risks increasingly affect financial markets, pension funds face a growing need to integrate environmental, social, and governance (ESG) factors into their investment strategies. Yet, the extent to which frequently stated ESG commitments translate into actual greener portfolios remains contested. Therefore, this thesis empirically assesses the “walk-your-talk” gap by drawing on a unique dataset collected through De Nederlandsche Bank that links stated ESG commitments to revealed portfolio-level climate metrics for 131 Dutch pensions funds. Using OLS regressions, the study finds that broad stated ESG commitments show limited association with revealed carbon metrics. In contrast, measurable indicators and board-level implementation and preparation are significantly linked to lower portfolio emissions. These findings suggest that ESG capacity without accountability may fail to produce impact, highlighting an institutional time inconsistency in sustainable investing. Addressing this gap is critical if pension funds are to align long-term sustainability goals with short-term investment practices and fulfil both fiduciary and societal responsibilities
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Faculteit der Managementwetenschappen