The Dutch Federation of Pension Funds (Pensioenfederatie) has warned that new sustainability guidelines published by the Dutch Authority for the Financial Markets (AFM) could lead to “complex communication” that will deter participants.

The AFM published its Guidelines on Sustainability Claims last week for financial institutions and pension providers. The aim of the guidelines is for the AFM to provide guidance to market participants on how to make correct, clear and non-misleading sustainability claims.

The guidelines are not new regulations but reflect the expectations of existing legislation on communication. The Dutch Federation of Pension Funds previously raised concerns about the guidelines when a draft version was submitted for consultation.

“The Pension Federation expressed its concern that the guidelines will lead to more complex and legal communication about sustainability. This does not improve the participant's understanding. However, the guidance remains largely unchanged,” it stated.

It has therefore called for supervision to take into account the fact that participants are required to follow the guidelines.

“Pension funds must of course still be transparent and not make claims that cannot be fulfilled or are too vague. But too much emphasis on making very precise sustainability claims leads to complex communication that will deter rather than reach many participants,” the federation said.

Therefore, it has advised its members to carefully check whether the legislation is being complied with, based on the guidelines in communication about sustainability.

Share Story: