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But he did not kill her, because in between dream and act 

there are hindering laws and practical issues, 

(from: Willem Elsschot, The Marriage) 

Pension may seem like something in the distant future to generations Y and Z, but they are the generation of the future. What do they dream of? What are they doing to accomplish that? And what stands in their way? In this series, we invite youth to talk to us about what now and the future look like to them. 

Marleen de Witte (21): "I don't always connect with peers who are busy with completely different things." 

Who Marleen de Witte (21). She describes herself as an enterprising young girl who is very busy with the future and has a positive outlook on life. 

Lives In Huijbergen in Brabant, near the Belgian border. She currently lives with her parents but soon, she'll be living at work. "I'm going to be a house parent, which means that I'm there day and night for the residents of the institution where I work." 

Works as a starting actress and as an educational counselor in an anthroposophical care institution for people with intellectual disabilities, autism and psychological problems.  

Loves: "Musicals, singing lessons, music at full volume, wandering around for hours in thrift stores and home improvement stores, developing myself, taking courses and having good conversations. Those are things that make me very happy." 

What are your dreams?  

"I secretly dream of getting a cool role in an exciting film or series. I'm working hard for it but it's hard to get into the acting world. Fortunately, I have another passion: I would never want to give up my work in health care. I would prefer to combine the two. A few months out of the year for filming and then back to my other job.  

I think about the future a lot. I want to have children and eventually want to become a foster parent. My parents still are. There are seven of us at home, but there was also room for others. I see that as an enrichment. We always took in various children at home. As a result, I realized early on that having a carefree childhood is not a given. It taught me to appreciate what I had and have. My parents taught me that behavior always comes from somewhere. At school, this helped me to understand bullies, for example, now it helps me in my work. It seems very special to me to be able to offer a safe environment to children who need it later on. No matter how heavy their bag, I can help lift it." 

How do you envision your future?  

"With a husband and a family. I also hope to see a lot of the world, and to be able to do what makes me happy. As long as I continue to listen to my gut feeling, I have every confidence that my future will be fine." 

What does your dream retirement look like? 

"I hope to be able to go where I want, without having to worry about money. I wonder at what age I can retire, if it won't be very different by then. Of course, I hope that my pension and state pension will be enough to live on, but just to be sure, I also want to invest some money myself, so that I have an extra kitty. I don't know if I would like to stop working. Maybe by then, I'll be teaching, telling others what I've learned. Or do volunteer work. Maybe I enjoy that a lot more than when I don't do anything anymore." 

What is your dream for the Netherlands? 

"I have several! For example, I dream of a Netherlands in which there is health care for everyone, without deductibles. I'm afraid that people who can't afford that deductible will postpone a visit to the doctor. A lot of money is now also spent on treating disorders and diseases, while it would make much more sense to prevent them. Healthier food should be much cheaper than unhealthy food.  

In addition, in my ideal Netherlands there would be many more foster families. I want every child that can't live at home to have a foster family. The youth is the future. Children need to have a good start in order to be able to make something of it later.  

Lastly, I would like it if the Netherlands would realize that every level of education is equally important. Why don't we think in practical and theoretical terms, instead of high and low-skilled? Isn't it cool when you start working with your hands? It shouldn't be seen as inferior. I'm glad my parents encourage me to do what makes me happy. Getting by is important, but being happy comes first." 

What do you think is going well in society, what makes you proud? 

"I think it's great that education here is accessible to everyone. Health care is also very good, although it could be better and cheaper. The fact that we have freedom of expression in the Netherlands is also something that makes me proud; it's not a given." 

What could be better in the world? 

"It shouldn't be all about power and money. If people allow each other a little more instead of always striving for more, I think that a large part of the world problem would be solved." 

What worries you, with a view to the future? 

"Sometimes, I'm afraid of the consequences of digitization. In my youth I came home covered in mud, I hung in trees, I was really a child. These days, children are sitting at home with a tablet, watching movies. On the one hand, it's easy that the world is becoming more digital, but it comes at the expense of other things. I also find social media difficult every now and then: isn't it sad that people become insecure if they get few likes? I often notice that peers are worried about it. Such a waste of your time." 

What makes you angry? 

"The division created by the government between the vaccinated and the unvaccinated. People should do what they feel safe and good about. Now, a vaccination is slowly being enforced and you're a kind of pariah if you haven't got any shots. I've not been vaccinated, even though I work in health care. I think that too little is known about these vaccines and it doesn't feel safe to me. Also, I had corona and I came out well. I fully understand people who do get vaccinated, but I also understand people who don't. But it seems the latter is an opinion we're not allowed to have. That makes me a bit rebellious. For me, the corona pass is no reason to change my mind. I also enjoy myself without clubs and dinners in restaurants." 

What stands in the way of your dreams? 

"Myself, mainly. Sometimes, I want too much too soon. At times, I think: come on, you're only 21, enjoy a little more. I don't always connect with peers because I already live a much more mature life than they do. College friends go to parties every weekend and worry about whether or not to buy designer clothes. There's nothing wrong with that, but I think about completely different things. My job, taking care of people, gives me much more satisfaction than a night at the pub. I don't just do anything. I wouldn't do a little dating anytime soon either. If I get into a relationship, it has to be with the future father of my children, otherwise I think it's a waste of my time. Sometimes, I wish I could be more in the here and now. Sometimes, I am too hard on myself."  

What are you doing to realize your dreams?  

"Listen to my gut feeling. I've always done that, and it's gotten me far. I'm proud of where I am now. I do what makes me happy and I work hard for it." 

And what do you do for a better Netherlands and a better world? 

"I've been in a panel for people who want to become a foster parent since I was 12. I tell others about my own experiences as a foster sister. I hope to inspire them. I also think that what I do means a lot to others. I'm beside the residents of the institution and help them to live their best possible lives. Soon, I'll be a house parent there too, so I'll be there for them day and night. When I see what a rock the current house parent is for the residents, I think it's very special that I can take on that role." 

Current questions related to economics, (responsible) investing, pension and income: every week an APG expert gives a clear answer to the question of the week. This time: equity investor Martijn Olthof, about the explosive rise in the price of gas and electricity. “We are not expecting the low price levels from just before and during the covid period to return.”

The current price for gas and the accompanying price for electricity are at a record high. Natural gas tripled in price in 2021. Now that gas production in Groningen has been scaled back, we have become more vulnerable to these kinds of extremes. Where will the rise of the energy price end? According to Martijn Olthof, who is responsible for equity investment in the energy sector at APG, the current prices for gas and electricity are probably at an extreme peak. In the short-term it could go even higher, for example, if Putin and the EU do not reach an agreement about the Russian pipeline Nord Stream 2. But after that, the energy price will lower again, Olthof expects. We are not expecting the low prices from 2020 to return.

The sharp rise in gas prices this year has four causes, Olthof says. The first one is: the relatively cold winter and spring, we just had. “That greatly increased the demand for gas, particularly in Asia, and as a result a lot of liquefied natural gas - LNG - went to that continent. Because the winter and spring were also cold in Europe, that pushed up the price of gas.”

The temporarily lower supply of natural gas from Norway - major maintenance on a number of gas fields caused production interruptions - also had an upward effect on the gas price. Olthof: “Certainly now that gas production in Groningen has been cut back, Norway is the main gas supplier in Europe. Because of the faltering production, Norway has supplied less gas than usual.” The third cause of the gas price explosion in 2021 was the economic recovery, which caused the demand for gas to rebound.

Close the valve

And then there is a geopolitical factor. Olthof: “The amount of natural gas supplied by Russia is the same now as it was a year ago. But then, due to the lockdowns, demand was unusually low and the price was less than a fifth of the current price. Russia’s failure to meet Europe’s greater demand for natural gas has clearly had a driving effect on the price. Most people think Putin is doing this to force approval from the EU for the Nord Stream 2 pipeline, which Russia wants to use to transport more natural gas directly to Germany. Currently, gas already flows through the Nord Stream 1 pipeline directly but a lot is also being transported through the Ukraine. But for Nord Stream 2 to come into operation, the green light is still needed.” The question is, however, how soon more gas will be coming from Russia, even with Nord Stream 2 coming into operation, because Russia will first replenish its own storage stocks.

The price of electricity is partly determined by the price of gas. But there are two more effects on the pricing of electricity, Olthof explains. “Firstly, there was relatively little wind this year, which meant that the supply of wind energy was unusually low. But the high carbon price has also contributed to the rise in the price of electricity. After all, generating electricity becomes more expensive when emitting carbon becomes more expensive.”

Challenging winter

So much for the past. What can we expect in the near future when it comes to energy prices? Olthof: “It seems that the current prices of gas and electricity are outliers, with clearly identifiable causes. A number of them will play a smaller role, or none at all. Intermittent production in Norway will start up again and the supply of wind energy will rebound. And Nord Stream 2 will also be given the green light at some point, increasing capacity from Russia by 55 billion cubic meters per year. It will take some time to replenish the shrunken gas reserves. But these developments will bring energy prices back down, even though I see the high carbon price increasing rather than decreasing in the future, and energy demand will also remain steady for the time being. However, we should not expect the low levels from just before and during the covid period anymore. And if we get a severe winter without a deal with Putin, gas and electricity prices could skyrocket even further in the interim. That could make it a challenging winter for many European countries, but the UK in particular.”

Because in between dream and act
there are hindering laws and practical issues,

(from: Willem Elsschot, The Marriage)

Pension may seem like something in the distant future to generations Y and Z, but they are the generation of the future. What do they dream of? What are they doing to accomplish that? And what stands in their way? In this series, we invite youth to talk to us about what now and the future look like to them.

Indya Duivenbode (27): “We have to work together to make growing older in good health a priority.”

Who: Indya Duivenbode (27)

Residence: A rented house in the inner city of Rotterdam, with her boyfriend and her dog. “We would prefer to buy. But, even though we pay 1100 euros in rent every month, we were not eligible for a mortgage of 700 a month. It doesn’t even make sense.”

Work: Health economist Indya was a consultant in the care sector, but she quite her well-paying job earlier this year in order to start her own company, with which she wants to make more impact. “Zorgstelsel Unpacked” (The Healthcare System Unpacked) is an online community that is focused on the healthcare system. Indya has two aims: to make the healthcare system less complex and to connect parties with conflicting interests.

Enjoys: Sports (cycling, running, playing basketball), walking with the dog and nature.

What do you dream of?

“I dream of being able to design my life in a way that suits me, rather than conforming to what ‘society’ expects of me. Until recently, I was following the beaten path. Now I have quit my secure consultancy job to do something that suits me better. I’m trying to let go of limiting beliefs. For example, I thought that having a dog did not go hand in hand with a career. But when the corona virus broke out, I adopted one anyway. If I keep putting it off, I thought, I won’t have a dog until the time I retire. All around me I see people living for tomorrow instead of now. It is my dream to live more in the moment. I don’t always manage that yet, but I think it’s very important."

What does your future look like to you?

“It may sound a little vague, but I hope that I’ll be doing something that I can’t even imagine yet right now. The thought of knowing exactly where I’ll be in five years is not attractive to me and seems very limiting. In the future, I hope to have grown and learned a lot. Overall, I do see the future as bright. If entrepreneurship doesn’t work out, I know I’m privileged enough to be assured of salaried work for the rest of my life. I don’t know yet if I want children. I think not having kids gives you a lot of freedom.”

What does your pension look like in your dreams?

“I would like to be financially independent before I retire, just like many others of my generation would. I hope I won’t have any money worries and won’t need to work anymore, long before my so-called retirement time. I’d love to be able to keep doing what I enjoy most, and to help others. Not to get rich, but because it feels good. And I hope to grow older with my boyfriend in good health.”

What is your dream for the Netherlands?

"For everyone to grow older in good health. I am very passionate about this. Together we must ensure that healthy ageing becomes a priority for all Dutch people. I also dream of a Netherlands without discrimination and with more empathy and understanding. I identify as a feminist, and am still learning more about exactly what that means every day. I am a white, highly educated woman, I can speak from my own experience about male-female relationships, but feminism goes much further than that. I don’t know what it’s like to be discriminated against because of your background, religion or a disability. I think it’s important to be aware of your privileges, and to have understanding and empathy for people who are in a different situation. You should never feel better than anyone else, but certainly not less either. Those are principles I try to live by. I strive for equality.”

What do you see in society that you like and what makes you proud?

“I like seeing how many small initiatives there are at the grassroots level to connect people. In my neighborhood there are language cafes, for example, where different cultures can learn Dutch together, and there is a park that is maintained by the neighborhood. What also makes me proud is that my generation and the generation just after us are, in my view, much more concerned with making an impact than with making money and having a nice house. There are few young people denying the climate crisis, and I feel like we are thinking a lot about how everything can be better and more equitable. That gives me hope for the future.”

What could be better in the world?

“Haha, do you have a few hours? First of all, everyone should have equal opportunities and there should be less prejudices. That would improve the world. There is also a lot that can be improved in the healthcare world. There is an ever-increasing staff shortage, for example. It is expected that by 2040, a quarter of the Dutch population would have to work in healthcare in order to provide adequate healthcare services. In other words: that’s impossible. Healthcare must therefore be organized differently so that services can be delivered with fewer staff, and the demand for care must be reduced through prevention. We have reached a point where we have to get creative. Because we won’t be able to solve it by 2040 with a bit of polishing. It’s a complex issue that we should all be working on together.”

What worries you about the future?

“My biggest worry is still climate change. What is the most helpful thing to do? What can you affect? How can you contribute something? I find it very complex. But looking the other way and not doing anything is not an option.”

What makes you angry?

“Discrimination, inequality, racism, ignorance... Those are things that make me angry. I’m often asked, primarily by men: do we need feminism? Some people think I hate men. But men are not the problem. The problem is society, which is conditioning men a certain way. Once you see what’s wrong, you can’t unsee it anymore.”

What is in the way of your dreams?

“People without empathy. It’s also discouraging that at my work I’m not always appreciated for shaking things up in healthcare by making taboos discussable. That makes it harder.”

What are you doing yourself to make your dreams come true?

“I gave up my job in consultancy to make more of an impact in healthcare. That means I probably won’t be able to buy a house for a while, but I believe in what I'm doing so much that everything else has a lower priority. On the one hand, I’m trying to make progress this way, and on the other hand, I hope to inspire others to walk their own path as well. I’m already noticing that people around me are increasingly knocking on my door if they want to brainstorm about life choices. I love that. I believe that the world will be a better place if everyone does what is right for him or her.”

And what are you yourself doing for a better Netherlands and a better world?

“I believe that my company is going to make the Netherlands a better place. I am putting a lot of time and energy into it, to make the healthcare system more comprehensible and I’m working on a community to connect care professionals, managers and policy managers to each other. I want to create equality in a world that is still very hierarchical. I also try to stand up for people who are less privileged, even if that makes me less popular.”

But he did not kill, because between dream and act
there are hindering laws and practical objections

(from: Willem Elsschot, The Marriage)

Pension may be considered as something for the distant future by generation Z, yet they are the generation of the future. What are their dreams? What are they doing to achieve these? And what is standing in their way? This series is intended to let young people speak about the way now and later on is perceived by them.

Maarten Paauwe (25): “We have to live much more in harmony with nature.”

Who: Maarten Paauwe (25), born and raised in Zeeland. He studied engineering management in Tilburg and married Talitha three years ago, whom he already knows for ten years. “Promising each other to be faithful, is a beautiful thing in my opinion. We were pretty young when we got married, but why wait when you know you are meant to be together?”

Lives: In Gorinchem, where they ended up after a scheduled journey around the world fell apart due to the pandemic. “We sat down with a map of the Netherlands and asked ourselves what would be a nice place to live. Most people only know Gorinchem because of the traffic jams, but it truly is a great old, fortified town.” They are currently renovating the house they bought here in its old style (it was built in 1880). The house will be partly transformed into a bed & breakfast.

Works: At a green contractor, providing green management for municipalities, counties and the Netherlands Department of Public Works.

Enjoys: DIY, reading (mainly newspapers, history and philosophy) and trips to old cities.

What do you dream of?

“I dream of all of us living much more in harmony with the world and nature. Take the IPCC report, for instance. All evidence suggests that we live increasingly more distant from nature. I think this is something we could improve at different levels. On the one hand by means of better landscaping as we shouldn't adjust our planet to our demands. The topic ‘green’ now is the balancing item: we continue to build at every possible location and we plant a few trees should any space be left. This should be the other way around: nature first and some space for human beings here and there. Just look at a schoolyard for example, that almost entirely consists of concrete. Children should already be given the message that we are only guests when it comes to nature. I think humankind should focus more on that, also because it's simply better for our health. The average person is overweight, eats a lot of meat and consumes a lot of dairy products: that's not the way nature is arranged.”

How do you envisage your future?

“On the basis of things, I already have everything I want. I am happily married, own a house, have a great family and enjoyable work. In terms of work, I would like to manage a company someday, so I can implement my vision in a large-scale manner to the green industry. I would like to sit down with policymakers and make the Netherlands more sustainable. In my opinion, the company I am working for now is literally making the world a bit more beautiful by constructing green areas.”

What does your dreamed of pension look like?

“First of all, I hope to be healthy and energetic for a long time, so I can still make a contribution to society in the future. I am wondering if we will ever get a pension though. Many people my age want to become FIRE (Financially Independent & Retire Early), start investing or buy properties in order to be able to retire as early as possible. I don't think that is a healthy way of handling pension, given the costs we already have as a society. Moreover, all evidence suggests it is much better to continue work as long as possible. Albeit at a slower pace, not from eight to five in an office job. You can also contribute to society being a volunteer. So, I hope to be able to do so myself, but I also hope that this will be what society aims for in the future. Older people have so much talent and experience which will all go to waste if they just sit at home or are travelling the world. Of course people should enjoy their freedom, but I truly believe that we, as a society, draw insufficiently on those skills and abilities. I also think it would be great to remain relevant. You could still call it pension if you work twenty hours per week to leave a better society to the next generation. We shouldn't consider work as an obligation, but as something great.”

What is your dream for the Netherlands?

“I would like the Netherlands to become a healthy society, in the broadest sense of the word. We have to commit to a healthy planet, a healthy ecosystem and a healthier bio-industry. The way we are treating animals right now just isn't okay. I read an article a while ago, stating that if people would be slaughtered at the same pace as we slaughter animals, the entire global population would be extinct within seventeen days. I hope the Netherlands will become a frontrunner and shows there is another way to do things. The Dutch could also live a lot healthier. While we are living longer, we also live unhealthier. And finally, I dream of a healthy economic system. The mountain of debt is getting higher and higher. Study loans, national debt; it all increases. That is cause for financial stress. Wouldn't it be great if our country could demonstrate that it's unnecessary to accumulate debts in order to ensure continuity?”

What do you believe goes well in our society?

“One of the greatest things of the Netherlands is that the opportunities here are huge. That also applies if you grow up in a less favorable neighborhood, if your parents have a non-Dutch background or if you were born into a poor family. Everyone here is able to get an education.”

What could be improved in the world?

“Equal opportunities. Talitha and I visited slums in India and that truly is another story. If you grow up there, there's no chance whatsoever to make something of your live. Here, in the Netherlands, hard work usually pays. In India, you can work as hard as you'd like without achieving anything. Isn't that a sad fact?”

What are your matters of concern in view of the future?

“That we still don't seem to recognize the urgency of certain issues. Take, for example, the climate report of the IPCC. Climate change will eventually become irreversible, but when will we realize this? Everything is happening so slowly. I am also worried about the increasing polarization. An endless amount of information is available, we are able to communicate with one another all over the world, but we hardly ever do that. We take more and more refuge in our own bubble. Forum voor Democratie (Dutch political party) wants to start its own society with its own crypto currency, dating app and schools. When I hear that, I think we are truly losing grip on each other. This way we return to a fragmented society. And we should furthermore not forget a generation proud of its cancel culture, in which people are cancelled at the slightest lapse. That leaves us with a cramped society in which everyone chooses their words carefully and is afraid to speak openly, because we are trying to avoid insulting someone. We could take ourselves a bit less seriously. Tolerance is harder to find these days.”

What makes you angry?

“What especially makes me angry is that many things are well arranged in the Netherlands, but that 'we’ don't really care about everything that's going on beyond our national borders. We construct oil pipes in the Middle East, but not water pipes where it's much needed. We use large chunks of land to feed the cows, but we prefer not to do the same for another population. Moreover, what I find particularly disgusting when it comes to the corona policy, is that we buy all vaccines in massive quantities in the West and start vaccinating young people, while vulnerable people over the age of 60 in India are begging to please be vaccinated. And, of course, the pharmaceutical companies are not releasing their recipes. There are more crooked things. I recently read an article stating that the prices of healthy food are rising faster than the prices of unhealthy food. This makes it more difficult for people with a low income to buy healthy food, while that's a basic need.”

What is standing in the way of realizing your dreams?

“Not so much when it comes to my personal dreams. I will mainly have to work hard to realize everything I dream of. I do notice that there are all kinds of things that annoy me, but I find it hard to give these issues substance. I don't know where to turn to with my combativeness. Would it be possible for me to join some sort of climate committee? Are there more younger people like me, full of energy and activism, facing the same problems? Could we debate about these topics together and commit ourselves to make society a better place to live? I am eager to take action, but how do I get in touch with the right people to really accomplish something?”

What is your own contribution to a better world?

“I drive an electric car and I am vegan. That was a deliberate choice as I am trying to demand as little as possible from our planet. Due to that choice, I often discuss the impact of our meat and dairy consumption on the climate with others. It is not my intention to force anyone to become vegan - if you have barely anything to eat, like in some African countries, you just eat what's available - but meat and dairy are not necessary in the Netherlands.

Besides that, I use my talents at a company that's contributing to a better world. It would be very difficult for me to work for a company such as Shell for instance. This is my way to do my part at a small-scale. It would be fantastic should I be able to address these issues on a larger scale, together with others.”

The report by the United Nations’ IPCC, Intergovernmental Panel on Climate Change, underscores the rapid, human-induced increase of global warming. If we don't take action now, temperatures could rise by nearly six degrees Celsius towards the end of this century. If we do act now, the goals of the Paris Agreement are still achievable. Large companies and investors can make a difference. The question is: Are we currently doing enough to turn the tide? According to Joost Slabbekoorn, senior responsible investment & governance manager at APG, at least we're on the right track. “We have long seen the need to take action and that's exactly what we're doing."

The conclusions drawn by the UN report don't really tell us something new: Humans “unequivocally” play a role in climate change, the earth has warmed by more than 1 degree in 100 years (much faster than before), the effects of climate change are felt all over the world, and temperatures will definitely continue to rise in the next 30 years. Whether that's by 1.5 degrees in the best-case scenario or 5.7 degrees in the worst-case scenario depends entirely on the actions we take globally.

Reassessing policies

“Yes, the IPCC report makes for very uncomfortable reading," says Slabbekoorn, the person who, together with his team, is responsible for implementing sustainable and responsible investment policy for the ABP pension fund, among others. “But actually, we already knew that things haven't been going well." We have known about climate change for some time. It's with good reason that our focus has grown substantially in recent years in terms of sustainable and responsible investment policies for fund clients such as ABP. But sometimes you know that our approach must and can be more effective, says Slabbekoorn. Conclusions such as those drawn by the IPCC report may then actually be decisive for revising policy. "That's what ABP did recently. We realized that accelerating the energy transition is the only option – and current policies do not adequately make that happen. That's why we’re setting our climate ambitions higher in 2022." ABP is taking this issue very seriously. A panel of scientists at universities is helping us create these improved policies. 

Fossil fuel

In addition, APG, along with 32 other large investors, collaborated on the “Net Zero Investment Framework” – a framework that provides guidance on how to tackle climate change. “It's exactly these types of initiatives – as well as our engagement efforts – that allow us to contribute to a liveable world by using our influence as investors to encourage companies to make more sustainable decisions.” But as Slabbekoorn emphasizes, one doesn't make an impact on their own. “As an influential pension investor, I think we have an obligation to do everything within our power. But everyone must do their part.” One option that climate organizations often propose is moving away from investments in fossil fuels. Does the IPCC report mean that APG will advise its clients to completely stop investing in fossil fuels? "Not necessarily," says Slabbekoorn “Ideally, the fossil fuel industry also needs to be part of the solution. But oil and energy companies will need to accelerate their transition from fossil fuels to renewable energy in the coming years. We are paying close attention to their actions in this regard. If things aren't moving fast enough for us, or we lose confidence, we will stop investing in fossil fuels.”

Mapping out risks

One of the report's other conclusions is that the effects of climate change can be seen all over the world. The floods in Limburg (the Netherlands), Belgium, and Germany are a case in point, and these sorts of phenomena are also influencing APG's investments. “Changing weather conditions are already impacting our investments. In any case, temperatures will continue to rise. This means that climate change will continue to affect our investments. That's why, for our real estate investments, we're already mapping out risks in case of floods, droughts, forest fires, or rising sea levels. We have also developed a dashboard that shows us the physical risks of climate change by country,” says Slabbekoorn.

Ray of hope

“The report, or rather the report's conclusions, truly impact the way we invest. We are taking the right steps, but there is always room for development," says Slabbekoorn, who, despite the report's bleak message, also sees a ray of hope. “The report also states that we can still meet the climate goals by 2050. But to achieve those, we'll really need to get moving.”

But he did not kill, because between dream and act
there are hindering laws and practical objections

(from: Willem Elsschot, The Marriage)

Retirement may be the last thing Generation Z is thinking about, but they are the generation of the future. What do they dream about? What are they doing to achieve it? And what stands in their way? In this series we let young people talk about what the present and the future look like to them.

Bas Grund (20) from Amsterdam: “Anyone can get rich. It’s about making the right choices.”

Who: Bas Grund (20), describes himself as a career tiger and a “super-self-willed guy”, who discovered in high school that school was not really his thing. “I went to the vocational school for a little while, but I already had several enterprises on the go by then and they were doing well. I figured more education would not yield me more in the future. In the world of online marketing, which is where I was, getting knowledge from a book was soon no longer up-to-date. So, I decided to go to work and really go for it.”

Lives in: A rental home in Amsterdam. “I wanted to buy a house right away, but the bank was skeptical because I’m pretty young and was an entrepreneur until recently. Hopefully I will be able to buy something next year.”

Works at: He quit his own company in December, and since then has been the manager of a start-up marketing company that works for restaurants, hotel and pop stages. “Totally sick.”

Enjoys: Listening to music, “anything except recorder and triangle”, traveling, meeting new people, discovering places. “And secretly, I really enjoy working hard.”

What do you dream of?

“Personally, I mostly dream about business success. I would love to be on an executive board down the road. And if I can dream big, I’d like a top position in an international company. A position where I can mean something for the world, but where I can also make a lot of money. Then I would use that money to do something good. For example, invest in making real estate more sustainable and building schools in developing countries.”

How do you envision your future?

“I often fantasize about the future. I’m very curious what it will look like. But I’m also someone who lives day by day. I don’t have goals like, in five years I want to leave here and then I want such and such. I believe that if you set goals you limit yourself to them, even though they could be even bigger. If you don’t set goals, anything is possible.”

What does your dream retirement look like?

“I’d like to retire around the age of 40, so that I can then enjoy my life along with the family I hope to have by then. Then I can make up for the time lost on working and do a lot of traveling – which will hopefully be a lot more sustainable by then, and go out to eat. I’m choosing to work really hard now and then really start to live later. That is radical, and I can’t really think about it too much, about all the things I will have missed out on if I get hit by a bus tomorrow. But work is the priority right now.”

Why is your work so important to you?

“I feel a pressure inside: am I doing enough? I want to be in the lead. I believe you should always do your best, even on weekends and at night. It’s much easier to make sure you stay in first place than to struggle to the front from tenth place. I keep up the spirit to motivate myself. Fortunately, I enjoy working; it is really my passion. I do notice I am in a different phase of life than my friends, even though we are the same age. They go to school and go out a lot. I make it to the odd party, but unfortunately not that often.” 

What is your dream for the Netherlands?

“That everyone can be themselves and can express their opinion without consequences. I notice in my circle of friends that political opinions clash sometimes and that we don’t always understand each other. That’s fine, but that should not lead to people being afraid to express their opinion. You should never be ashamed of who you are and what your stand for. Even if you don’t agree with each other, you should be able to get together for a beer at the pub. It’s not like that’s not happening in the Netherlands now, but I’ve noticed that if you have a different outlook, you are a bit of an outsider. You soon get labeled.”

What do you think is going well in society?

“I think it’s great that we’re all so aware that we have to innovate and look to the future. I’m very proud of how innovative the Netherlands is compared to many other countries. I just wish it would all go a little faster.”

What could be better in the world?

“Peace everywhere would be nice, of course. At a smaller scale, I’d really like it if every country had good infrastructure. You can even see the difference as soon as you cross the border into Belgium now. We are so lucky in the Netherlands. And the gap between rich and poor has to get smaller. How? I believe it’s okay to get taxed more heavily if you have more money, but only on passive income and capital. Labor should be taxed equally as far as I’m concerned, whether you’re a shelf stacker or a manager. Getting rich is a choice to a certain extent, I think. If you want to get rich, you have to make the right choices.”

You believe anyone can get rich regardless of their background?

“Well, if you’re in deep trouble or you have debts, it’s hard. But even then, you can turn it around with the right strategy and a good plan. And well, if you’re born in a slum in India, you have a lot of catching up to do. You’ll have to work your way up. In the Netherland and Europe, we have it easier. But I’d still say that it is possible for anyone to get rich. Look at the CEO of Google, Sundar Pichai. He’s from an Indian family that didn’t have much.”

What worries you in terms of the future?

“The way we are living is not nearly sustainable enough. We really have to work on that together. Another thing I worry about is education. I don’t think it’s growing with the times. In ten years, there are going to be all kinds of new jobs that the school system is not prepared for yet. They’re doing their best, but the development is taking too long, I think.”

What makes you angry?

“Young people that waste their potential, that have a lot in them, but don’t have the courage to dream big. That mentality that 55% is good enough to pass. And when you translate that into a business career, it will stay that way too. What if you went for that 100%? Then your career could be ten times better. Anything is possible these days, don’t be limited by that piece of paper. Get out there and meet the right people, take a subject-specific course. So much more than you think is possible. Just do it.”

What is in the way of your dreams?

“Time, because I’m someone who doesn’t have a lot of patience. On the one hand, maybe that’s good, because I’ve already been able to take some great steps at my age. But on the other hand, it is still not going fast enough for me. As far as I’m concerned, the Netherland should innovate faster, so that there are more opportunities to make my work easier, which will help me reach my dreams faster. Sustainability could be a lot faster and better too.”

What are you doing to make your dreams come true?

“I work about sixty hours a week, as effectively as possible, to rise in the ranks.”

And what are you doing for a better Netherlands and a better world?

“I’m not into those hollow posts on social media; I’m more into doing. I want to initiate change myself. In the past I did a lot for sustainability. I used to have a company called Sustainable places, which helped restaurants, hotels and homes in the Netherlands to become more sustainable. Now I have less time to fully focus on sustainability. Sometimes I use my marketing knowledge for free for sustainability. But if you do a little wherever you go, even if it’s not much, ultimately it will be a lot.”

APG wants to be an organization where everyone can be themselves. Always, all year round. But on occasion, like around Pride Amsterdam, we like to give it some extra attention. Our coworker Edith talks about being accepted and belonging. She feels that these are primary needs that every human being has. But instead, she herself has been fighting against rejection for almost her whole life. “My parents have never accepted that I am a lesbian.”

Anyone booking a vacation right now is looking at the world map that is showing red, orange, yellow and green. What rules do we have to comply with? Where are Dutch citizens welcome? For APG employee Edith*, finding out which vacation country she is welcome in is routine. Because even before the outbreak of Covid-19, she could not simply cross the border for a well-deserved vacation. Seventy countries that are members of the United Nations prohibit same-sex marriage, in at least eleven countries you can even be sentenced to death and in only eleven countries, the rights of lesbian, gay, bisexual, transgender and intersex people (LGBTI) are included in the constitution. Edith: “I can’t take it for granted that I will be welcome anywhere. Not even in the times we live in now. As an almost sixty-year-old, this still astonishes me almost daily.” She tells her story now during Pride Amsterdam to bring a bit of awareness. “It’s important to realize what it’s like for someone to be different.”

Edith was born in South Limburg. She grew up in a Catholic family as the sixth of seven children. Anything that was different was problematic at home. Especially when Edith told them she was a lesbian. "I finally came out of the closet when I was 21. But my parents never accepted it. They kept asking me when I was going to bring a man home, and on the day that I told them I was going to marry my current wife, they said, 'Do you really have to do that?'"

Own choices
Her father thought a psychologist could figure out how serious Edith’s “deviant” orientation was. To please her parents, and just to be accepted, she agreed to go to the session. The psychologist quickly saw that “a 21-year-old woman is certainly capable of making her own choices” and tried to help them see that too. But her parent’s acceptance never came. Edith will never forget the last comment she heard from her dad. “When I was fourteen, I was in a bad accident. I came very close to death. When my father heard I was a lesbian, he literally said, ‘if I had known then, what I know now, I would have wished you had remained dead’.”

Edith hopes with all her heart that today’s parents don’t have that kind of reaction. But even in these times, that is not something that can be taken for granted. “Tolerance has peaks and valleys,” she says. “There are still so many gay people who get beat up in the street. And look at Arie Boomsma’s TV program where he helps young people come out of the closet. The fact that such a program is needed in this day and age is astounding to me.” And closer to home: her own sister votes for the Christian Union, which is known for excluding homosexuality. “There is still too little acceptance, and I’m afraid it will never completely come.” Why is that? Edith, who has since deregistered herself from the church, attributes it to the mix of cultures we live in. “A lot is destroyed by faith and ancestry. But because different cultures, each with their own standards and values, are continually getting closer to each other, we must learn to accept each other as we are.”

Primary need
Wanting to belong, to be part of something is a primary need that is impaired by rejection, Edith stresses. “When you are looked down upon, for whatever reason, it is palpable. That scars you and creates an inner struggle. It is a struggle I have been dealing with all my life; to show who I am and to be allowed to be who I am. When I’m walking down the street holding my wife’s hand, I let go as soon as I see someone. You don’t know when you’ll come across someone who is against it, who will beat you up for being who you are.” The days of being angry at having to be on guard all the time are behind her, though. “It is what it is. I've risen above it and made my peace with it. And it’s now my choice not to advertise it.”

Hype
At work, however, Edith does not experience this kind of discrimination; at APG she does feel accepted. “I think it’s really fantastic that people can share their stories, for example on the intranet. Even five years ago, that was very different. Is that because diversity and inclusion are a hype now? Even if that is the case, that can only be good. We should keep focusing our attention on that, with the result that I can be myself, working for this employer.” But there is still a lot of work to do, at APG as well as in society all around us. “When I mention my partner, for example, in most situations, people will automatically assume I’m talking about a man. And mail addressed to “the ladies”, is not happening yet. So, we’re certainly still behind the times in the Netherlands.”

And then her eyes light up, because Edith has a positive attitude despite the obstacles she has faced in her life (“without darkness, you can’t see the light”), and she is proud of who she is and of her wife. The two of them will be going on a “safe” vacation this summer and stay with an aunt and uncle in Austria.

* For privacy reasons, the name Edith is fictitious.

But he did not kill, because between dream and act
there are hindering laws and practical objections

(from: Willem Elsschot, The Marriage)

Retirement may be the last thing Generation Z is thinking about, but they are the generation of the future. What do they dream about? What are they doing to achieve it? And what stands in their way? In this series we let young people talk about what the present and the future look like to them.

Laura Bas (24) from Amsterdam: “I worry about the waiting lists for mental health services. People who need help - and there are more and more since the pandemic - now have nowhere to turn.”

Who: Laura Bas (24). She recently finished third at Miss World Netherlands and will be starting the Culture Organization & Management master’s program at the Vrije Universiteit in Amsterdam in September. Previously she had studied law at a university of applied sciences. In addition, she is ambassador of the project "Because I deserve it", where she, MEPs Agnes Jongerius and Vera Tax, facilitate workshops on the wage gap for (young) women. “In the Netherlands, men still earn on average 15 percent more per hour than women. It is my mission to change that and I want to continue to work for that.”

Lives in: In a studio apartment (24m2, paying 320 euros) in a social project in Amsterdam. “Half of the residents have permanent residency cards and the idea is for us to mingle. It’s a great place to live, and it’s less than ten minutes from the university.”

Works at: Freelance in contract law and as a final editor at the Amsterdam Student Union.

Enjoys: Writing, history, philosophy, psychology and “pretty much anything that ends in ‘y’, except for biology.”

What do you dream about?

“That as a management consultant I can storm boardrooms in the business world, preferably internationally. I would like to see women being much better represented in the labor market five years from now than they are today. I want to deal with issues surrounding themes like diversity and inclusiveness. I see it as one of the tasks of my generation to bring organizations up to date by tackling outdated processes. Take pronouns alone. At the Amsterdam student union that I work for, a number of people are non-binary. They want to be addressed as ‘them’ instead of ‘he’ or ‘she’. These are changes that our generation needs to start making, including in the business world.”

And what do you still hope to accomplish in your private life?

“I hope to see a lot more of the world. As a naive 17-year-old, I lived in Brazil for a ‘gap year’ and I learned a lot from that. In a country like that, you constantly have to put your own values and standards on the scale in order to be grounded there. It has broadened my view of the world, and since then I have been much less quick to judge. It also made me realize how good we have it in the Netherlands. I still go back to Brazil every two years to visit my friends and the family I lived with. It is very interesting to hear their views on certain subjects. Getting to know other cultures is one of the most inspiring things in life as far as I’m concerned. I don’t have flight shame yet, but I really hope that the experts in that field will be able to develop a sustainable way to travel responsibly.”

Wat is your dream for the Netherlands?

“I hope that in the future our country will be even more inclusive and diverse, more open-minded, and more accepting of others. There is now finally a woman of color (Sylvana Simons) and a transgender person (Lisa van Ginneken) in the House of Representatives. It would be nice if politics and business become more of a reflection of society. I would like the Netherlands to become a safer place for minorities. Because in terms of LGBTQ+ we are not there yet, and strict believers also have a hard time. I hope that we can all live together more peacefully. I wish for that outside the Netherlands as well. I would like to live in a world where we all respect people’s values, without stereotyping and prejudice.”

What does your dream retirement look like?

“I hope to work for an employer where the pension is well taken care of. In addition, I want to start investing money myself in order to retire earlier. I think we have to work until we are 70, which seems too long to me. My dad is about to retire and he and his girlfriend are planning to travel across America in a motor home, which I think is a great way to retire.”

What do you worry about when you think of the future?

“Polarization, and I think social media plays a big role in that. If I like pictures of people who say grass is purple instead of green, it causes me to only see content from people who think that too. That filter bubble provides a distorted picture of reality, which worries me. I’m afraid of the consequences.

What also worries me are the waiting lists for mental health services. People who need help - and there are more and more since the pandemic - have nowhere to turn. I live in a project with many permanent residency card holders who have been through the most horrible things. Many of them are struggling with traumas, but are not getting any help. When things go wrong, as a society, we cry out: ‘You see, it’s always those refugees’. But we should look in the mirror and as a society we should make sure that these people receive the help they need. These prejudices really bother me too. I am often asked if I don’t feel unsafe in my neighborhood, because many young men with a migrant background live there. No one ever asked me that when I lived in a working-class neighborhood in Amsterdam-North. I feel very safe here. If something were to happen to me here and I were to scream, I’m sure those guys would come running out of their units to rescue me.”

What makes you angry?

“Injustice. For example, it makes me very angry that women are still 2-0 behind in the labor market. That is trivialized with the argument that it is our own fault, that we like working part-time. But that is not the core of the problem. I’m not very happy about the loan system either. I think it’s totally archaic for people with less income to have less access to education. Because you can pretend that the student debt doesn’t matter, but try to find a house in this housing market later on, if you and your partner both owe 40,000 euros in student debt. And even without that debt it’s already impossible to do, especially for people with a modest income. The gap between the rich and the poor is only getting bigger.”

What stands in the way of your dreams?

“Policy choices. That as a society we are choosing to cut back on healthcare, that housing prices are skyrocketing, and that you can no longer go to college without incurring big debt. But it can always be worse. My friends in Brazil have to deal with corruption and a leader like Bolsonaro. For them, it’s even harder to make their dreams come true.”

What are you doing to make your dreams come true?

“I don't shy away from difficult conversations, I work hard and I am committed to the community organizations and causes I support.”

And what are you doing for a better world?

“I try to eat a lot less meat and I only buy second-hand clothes, with the exception of sportswear and underwear. In that respect, I really am a millennial. I also encourage others to go for their passions and ambitions and not to let themselves be led by criticism from others. That makes the world a better place too. I want people to know that failure is part of success. In the Netherlands, failure is seen as a bad thing, but you can’t become successful without falling down a few times. You learn a lot more by falling down and getting up than you do going up in one straight line.”

Don’t you want to go into politics?

“I get that question a lot. No, not right now, but I’m not ruling it out for the future. I secretly think the business world has much more power than politics. Many politicians start with the best intentions at the Binnenhof (Inner Court), full of passion to make a difference, but then find themselves in such a snake pit that it becomes difficult to live up to their ambitions. It may be easier to really change things in the business world.”

In honor of the anniversary edition of Pride Amsterdam, APG is raising the rainbow flag at the offices in Amsterdam and Heerlen. As an employer of three thousand unique individuals, we are clearly showing that we want to be a diverse and inclusive organization in which fund clients and participants can recognize themselves too.

APG’s diversity and inclusion policy cannot be summed up in a few words. Activities range from signing various national manifestos such as “Diversity in Business” and “Talent to the Top” to establishing a Diversity & Inclusion (D&I) Board, organizing employee meetings and closing the gender pay gap.

Support
By raising the rainbow flag at several APG offices, APG is reinforcing its statement to promote diversity and inclusion. Something that makes Erik van Dam, reputation manager at APG, proud. “This gesture means more to me than I thought. Showing the flag feels like support that I can be who I am and that this is possible at APG. Especially considering that in the outside world, unfortunately, this issue still needs so much attention. At APG, I have rarely felt an inhibition to be myself. And yet I only know a handful of coworkers from the LGBT+ corner. So, there are still steps to be taken at APG in the area of diversity and inclusion. Hopefully the flying of the flags will make everyone more aware of their role in this.”

Aim
Ronald Wuijster, a member of the executive board and also chairman of the D&I Board, acknowledges that more steps can be taken to become an inclusive employer. But he is also proud of what has already been achieved. “We believe it is important that all employees feel involved and valued for who they are as professionals and as people. After all, being able to be yourself at work is important for everyone. In recent years, APG has already made considerable strides and the bar remains high. For example, we are aiming for at least 30% women at the top of the organization and 40% across the entire organization by the end of 2022.”

Progress
In addition to the rainbow flag, APG is also introducing a specially designed rainbow logo today. This consists of the original rainbow flag along with the five colors of the Progress Pride flag, which has a greater focus on inclusion and progress. Wuijster: “While the flags are flying outside, the logo reflects our sustainable identity and the values we want to show as a company online and on social media With this logo, APG is supporting unique individuals and underlining that progress is needed. We hope to contribute significantly to a sustainable future with this.”

Current topics with regard to the economy, responsible investment, pension and income: every week, an expert at APG provides a clear answer to the “Question of the week”. This week: Asset Management professional Steve Goossens discusses the impact of climate change and environmental disasters on real estate investments.

Hundreds of millions of euros: this amount alone represents the damage caused to the city of Valkenburg when the surrounding region was hit by severe floods in mid-July. This says a lot about the total financial impact of the flooding – and environmental disasters in general. Due to climate change, crises like this are becoming more frequent as well as more severe. With all the consequences – and damage – that this entails. To what extent does this affect investments in both the short and long term?

“The impact of climate change on investments is bigger than you might think,” says Goossens, who works in the real estate asset class. And he should know. Together with his team and co-workers from the Responsible Investment Team, he has been focusing on climate-related risks concerning the investments made by APG’s fund clients for more than two years now, primarily for his own department: real estate investments. “If at all possible, the data I collect will also be used in relation to investments in other areas, such as infrastructure.” After all, the impact of natural disasters is not limited to real estate alone. Goossens also examines risks associated with floods, forest fires, droughts, or rising sea levels in relation to real estate, for example. “Look at Amsterdam: droughts have been causing the piles on which the city is built to be exposed above water level for long periods of time. This, in turn, causes the wood to rot and the ground to subside more quickly. This is accompanied by an enormous investment task, which has a direct impact on some real estate investments in Amsterdam and the surrounding area.”

Direct and indirect risks

Goossens distinguishes between two types of risks related to climate change on investments: direct and indirect risks. The subsidence in Amsterdam, the flood damage in Limburg, as well as the devastating effect of forest fires on homes elsewhere in the world are all examples of the direct impact that climate change has on investments. “This is quite easy to explain: investment properties suffer damage and part of the costs in relation to this will always be borne by the investor. That, in turn, affects an investor’s returns: the higher the costs, the lower the return.”

Then there is indirect damage: “When a disaster occurs, stores may need to stay closed or hotels may not be able to receive guests, which brings certain costs with it. A natural disaster may also force people to move. Not only that: insurance contributions, for example, will also be subject to considerable increases in response to environmental disasters, or certain types of environmental disasters will no longer be covered by insurance. Property owners pay the price of this. Insurers, like us, estimate the risk of disasters like these and base their prices on that. You can count on insurance contributions becoming much higher in the future.”

Transition risk

Goossens therefore also draws up risk estimates for the investments APG makes for its funds. This is urgently needed, because it enables estimates to be made of the financial consequences of climate change in the longer term. Investors take this into account when estimating the value of an investment. At least as important is what is referred to as the transition risk: “This is the risk of rising costs in response to the energy transition. In other words: what additional investments are needed to achieve the goals of the climate agreement? Better insulation or new heating systems are examples of this. Climate change is causing the Earth to heat up faster. If we want to combat this and limit the ensuing rise in temperature to 1.5 degrees, as stated in the agreement, this will bring certain costs with it.”

Legislation & Regulations

According to Goossens, how much money and which investments are needed in the coming years also depends on legislation and regulations. The requirements set by governments for energy labels is a significant factor in this. “We have no influence on that, but we do know what the ultimate goal is for 2050 and that we need to keep reducing the amount of CO₂ we emit.” APG and other large investors have developed the global CRREM standard to measure the transition risk and, in doing so, gain a clear overview of that ultimate goal. This provides insight into whether a real estate investment complies with the Paris Agreement. An office building in the Netherlands complies with the climate agreement if it consumes no more than 14 kWh/m² of energy, for example. CRREM is stricter with regard to this than the Dutch Green Building Council (the network organization for sustainable construction practices), which applies 50 kWh/m2 as a standard, says Goossens. “Aside from that, the CRREM standard is scientifically substantiated. By applying this standard, we go much further than other organizations in the sector."

“Our calculations allow us to estimate what it will take to meet the goals at individual investment level. We then examine the various aspects involved in relation to our long-term real estate investment plans.” Goossens believes that these additional investments are necessary. “The alternative is that the Earth will heat up by more than 2 degrees and that even more environmental disasters will occur. The damage caused by that is many times greater than the cost of accommodating the energy transition.”

The Rolling Stones, Bruce Springsteen, Coldplay and Pink: they all performed here. The Malieveld was their outdoor concert hall. That said, protesting trade unions also regularly take over the “Haagse grasveld,” the famous field in The Hague. There’s no doubt that Tuur Elzinga has also left many footprints in that field. His history with the trade union movement stretches back to 2002, when he was appointed as a policy officer at the Netherlands Trade Union Confederation. Almost twenty years on, he is now chairman of the trade union and employers’ and employees’ organizations since March 10 of this year, to be precise. He also represented the Socialist Party (SP) in the Upper House of the Senate for nine years. This means that he is as familiar with the green polders of the Netherlands as the green benches of the Senate.

Getting fat on the bones

Elzinga believes that things need to change in the Netherlands. In his opinion, the pandemic is a tipping point: the market-driven approach that has gone too far must make way for a revaluation of society. The pandemic has revealed how indispensable certain sectors are to our society, like health care, education and childcare.. “It is precisely those vital sectors that have fallen behind in recent years,” Elzinga reckons. Schools, hospitals and kindergartens have been run like businesses, and cut backs have been the order of the day. This has led to a shortage of ICU capacity, protective equipment and staff during the pandemic. “We need to get fat back on the bones again; we need proper reserves. That may not be very efficient, but it stops the whole of society from grinding to a halt when times get tough.”

Fears for the future 

The pandemic has also widened the gap between the poor – those with few prospects – and the rich. The Netherlands has become more prosperous in recent decades, but not everyone has benefited from this. The flexible labor market has put permanent jobs at risk and wages have not risen enough in line with profits. “Inequality has widened, and imbalances have occurred,” Elzinga tells us. Not to mention the climate crisis, from which there is no escape, both literally and figuratively, as we face extreme weather, forest fires and floods across the planet. Elzinga points out that this leads to unrest. “People are concerned about their own future and that of generations down the line. As a country, your sole aim may be to make as much money as possible, but what kind of home will we be leaving to our children and grandchildren if social cohesion is under pressure and our planet is being eroded?”

Plus another one million permanent jobs

Fortunately, the pandemic has also prompted politicians – from left to right – and some employers to realize that the Netherlands of Tomorrow demands change, believes Elzinga. He believes that we can start rebuilding the country without delay. We already have the blue print: broad-based prosperity for the whole of the Dutch population. That is the approach underlying the Social and Economic Council’s draft advice that trade unions and employers presented together this spring: a package of measures for the new cabinet. First and foremost, the labor market must be reformed: we must return to more permanent contracts, instead of flexible employment. Elzinga would like to see at least another one million permanent jobs. “People need job and income security. They want bread on the table, they must be able to pay the bills and have enough disposable income for their leisure time.”

The climate change price tag

Broad-based prosperity also calls for greater investments in public funds for vital sectors, like health care and education. For example, better terms of employment must stop the trend of having unmotivated employees: it may be more enticing to get out of bed in the mornings and take up the task of teaching if wages rise and work-related pressure is reduced. More must also be invested in the quality of public services, such as the Employee Insurance Agency, the tax authorities – here we have in mind the childcare benefit scandal – and yes, also pension administration. Elzinga says, “Better performance from institutions may also help to close the current gap in confidence.” For the long term, there needs to be substantial investment in tackling climate change. “We have to stop procrastinating and start addressing the issue. The longer we kick the can down the road, the higher the price tag will be.” So we need more funds to accelerate the energy transition, while at the same time being socially accountable by helping people who lose their jobs to get other work.  

Strong government required

Given the long societal wish list, the government can no longer keep its distance, Elzinga believes. Since the eighties, the maxim in The Hague has been: strong market forces, small government. “A market is a good for ensuring that there is enough to round, but you can’t leave everything to market forces,” Elzinga reckons. “We are now faced with the mess that the mantra of liberalization, privatization and deregulation has left us in.” Rebuilding the Netherlands calls for a stronger state, one that actively helps shape the society of the future through public participations and targeted investments, and legislation and regulation must ensure that market participants accept their social responsibility. This need for a government with a firm hand on the rudder does not stop at the borders. For example, Elzinga welcomes the G7 plan for a global minimum tax rate of 15 percent for multinationals. It will make tax avoidance through tax havens more difficult because it will put an end to competition among countries that lure foreign investors by having the lowest tax rates.

Tech giants

It is also crucial to have international regulations that curb the influence of Big Tech and Big Data. Elzinga adds, “Big tech companies are capitalizing on data that we as consumers are producing ourselves. They are using existing digital infrastructure, without giving anything in return.” The same is true of multinationals that are getting patents for innovations that they were not solely responsible for conceiving. After all, their smart employees are educated at publicly funded universities and draw on the body of knowledge that our knowledge-based society has accrued in centuries past-. We are standing on the shoulders of giants. “Data, knowledge, but also for example raw materials and energy sources such as the sun and wind and ultimately our entire planet: it belongs to all of us. What gives a handful of companies the right to claim ownership? Why should managers and shareholders be allowed to become wealthy beyond description from it, while employees and the rest of society have to make do with the crumbs?” says Elzinga.

“Give employees control”

The pyramid must be turned upside down. That doesn’t call for revolution; instead it calls for a radical change in direction, through gradual, democratic means, according to Elzinga. He believes that the first tentative steps down this new path have been taken. Governments are slowly starting to take back their traditional role, companies are taking more responsibility for their environment and consumers, citizens and major investors are more inclined to hold them to account. The next step is to give employees and society a real say, Elzinga argues. “'Give those people who come up with all those innovative ideas a voice, the ones that do the real work, who are the actual rightful owners of companies’ products and services: all of us, in other words. Who’s the boss? Who decides? As it stands now, they are managers and shareholders; in the future we should all be able to be in charge.”

From shareholder return to social gains

In recent years, Elzinga has been conducting the negotiations for the pension agreement on behalf of employers’ and employees’ organizations of the Netherlands Trade Union Confederation. It’s a historic agreement; designed to keep old-age provisions affordable going forward, without abandoning the principle of solidarity. “In the new system, the contributions you have accrued are reflected more directly in your own pension accrual, but we will still ensure that people who are not so fortunate in their careers will also be able to have a good pension, and we will spread the risks across the generations.” That said, Elzinga believes that the pension discussion is far from over. If interest rates remain this low in the coming years and investment returns structurally decline in the future, as predicted, then it will not be possible to keep the promise of an indexed-linked pension and the trust gap in society will widen. Pension funds could then take the next step: from shareholder return to social gains.

Pension benefits in kind? 

Elzinga explains, “Pension funds should examine the needs people have later in life. Do they then only need money? Or would they rather have a nice place to live, good care and quality of life? Invest in that directly as a pension fund; put pension money into new kinds of housing for senior citizens, good care for the elderly and restoring social infrastructure, so that it is to hand when people need it.” This would be a type of pension in kind. And why only invest in provisions for old age? Pension funds can also be used to improve today’s society. Here we have in mind investments in the tight housing market – which mainly affects young generations – or in good education, for a robust Netherlands of Tomorrow. Elzinga adds, “Pension funds have major assets and that means they bear a huge responsibility, for the Netherlands of today and the future.” 

An end to strikes

During the pension agreement negotiations, the Netherlands Trade Union Confederation, together with the National Federation of Christian Trade Unions in the Netherlands and the Trade Union for Professionals, halted train traffic for a day to apply pressure for a slower rise in the state pension age. What does Elzinga think: will there still be strikes in the Netherlands of Tomorrow? “I suspect so. In the meantime, there will be conflicts of interest between employers and their workforces. But I hope that one day it will no longer be necessary to strike: if employees are given a real say, they can be part of the decision-making process and conflicts of interest will become a thing of the past. If you are the boss, there’s no need for you to strike.” So the Malieveld of the future will be solely for the successors of The Stones and Coldplay, in other words: the ultimate festival grounds? Elzinga laughs, “Yes, that’s where we’ll gather to simply have a good time, do stuff we enjoy or celebrate together, for example, the great pension system that we have in the Netherlands.”      

APG publishes Responsible Investment Report

In 2020, APG has once again made great strides when it comes to responsible investing. By continuously improving, we can continue to meet the growing sustainable ambitions of our pension funds, as shown in our Responsible Investment Report (Dutch; English version expected in July) published today.

Responsible investing is one of APG’s strategic pillars. In their preface, Annette Mosman (CEO), and Ronald Wuijster (board member responsible for asset management) note that the Covid crisis has accelerated the increased attention for responsible investing. "Not only among NGOs, but also in the media and among the participants of the pension funds for which we work. We listen carefully, because we realize that our right to exist derives from the participants. It is for them that we work towards a good pension."

Investing in sustainable development

By the end of 2020, we had invested over €90 billion on behalf of our pension funds in companies and projects that contribute to the Sustainable Development Goals (SDGs). These were drawn up by the United Nations in 2015 to create a better and sustainable world. Our pension funds ABP and bpfBOUW both have a target for investing in the SDGs. A significant part of our investments in the SDGs (€12.2 billion) consists of labeled bonds. These are bonds issued by companies, governments and organizations to finance green, social or sustainable projects.

In 2020, APG, together with three international investors, established the SDI Asset Owner Platform to stimulate investing in the Sustainable Development Goals. Our ambition is to make this a global standard. In this way, we - together with other responsible investors - can contribute to goals such as sustainable cities and communities, affordable and clean energy and climate action.

Combating the Covid-crisis

By the end of 2020, APG had invested more than € 1 billion in so-called Covid bonds on behalf of pension fund clients. The proceeds of these bonds are used to combat the pandemic and the impact of the lockdown on people and businesses. Examples include the expansion of health care services, employment retention programs and support for SMEs.

In 2020, we also urged companies – both individually and together with other large investors – to mitigate the social consequences of the crisis and put employees’ health first. According to the U.S. organization Responsible Asset Allocation Initiative, APG is among the global asset managers that do the most to address the effects of the pandemic.

Global warming and the energy transition

The carbon footprint of our equity investments decreased by 39% against the 2015 base year. All our pension funds have a carbon reduction target. This year, for the first time, we also publish the carbon footprint of our corporate bonds, real estate and private equity investments (57% of the total portfolio). By 2022 at the latest, our pension funds will link these to 2030 climate targets. APG has contributed to a framework for reporting carbon impact as well as an overview of methods used by the Dutch financial sector for measuring the carbon footprint.

At the end of 2020, we invested €15.9 billion on behalf of our pension funds in the Sustainable Development Goal 'Affordable and Clean Energy' (SDG 7). By investing in this goal, we reduce climate risks in our investment portfolio and contribute to the energy transition.

Impact on risk and return

In 2020, we developed a method that provides insight into the effect of including (taking sustainability aspects into account in each investment decision) and excluding investments on the return of the equity portfolio. Over the past two years, the effect has been marginally positive. We do note that we can only make statements about the long term if we have measured over a longer period of time. In 2021, we will also develop methods to assess the impact of other instruments for sustainable and responsible investing on risk and return, such as carbon footprint reduction and investing in the SDGs.

Our own business operations

Although APG can achieve the greatest impact with the investments we manage for our pension funds, we also take into account our own business operations. We can only set a high bar for companies in which we invest, if we do the same for ourselves. In this way, we also motivate employees to consider sustainability in their daily work and choices. By 2030, APG wants to have a demonstrably climate-neutral business. In order to enable decision-making on our sustainable ambitions, we will establish a Sustainability Board under the leadership of CEO Annette Mosman. More on this in our annual report.

Sustainable future

APG invests over €570 billion on behalf of its pension fund clients ABP (government and education), bpfBOUW (construction), SPW (housing associations) and PPF APG, the pension fund of our own employees. Our pension funds have strengthened their responsible investing ambitions and objectives. ABP announced its new policy in 2020; bpfBOUW and SPW have recently done so. In line with our clients’ increasing ambitions, APG continues to develop in the area of responsible investing. We want to 'work together on your sustainable future'. A future with a good and affordable pension, in a sustainable, livable and inclusive society. That is what we are committed to, now and in the future.

But he did not kill her,

Because between dream and action,

Laws stand in the way

And practical objections.

(from: Willem Elsschot, The Marriage)

Retirement may be something not directly of interest to Generation Z, but they are tomorrow's generation. What are their dreams? What are they doing to achieve them? And what stands in their way? In the Dream and Action series, we ask young people to talk about what it will look like for them now and in the future.

Leila Jane Ali-Dib (23) from Rotterdam: "People with a non-Dutch background have fewer opportunities in life. I get angry about that."

Who: Leila Jane Ali-Dib (23), "creative, independent, sensitive, caring, always curious and a feminist".
Lives: In Rotterdam.
Works: As a freelancer in marketing and PR, she also does modeling and hopes to get some acting jobs. "Work is very important to me. I also enjoy working on my career. I really like to work hard. Not just for the money, but also for the pleasure it brings me. Pleasure comes first. I think it's important to experience enough freedom in my work. I want to decide for myself when I work, what I do and when I do it."
Loves: Being creative, experiencing culture, traveling and spending time with good friends.

What are your dreams?

"I try to live in the now and see what comes my way, but in a way, I'm also concerned about the future. What do I want? Who do I want to be? What else do I want to do? I hope that later, I will have a family and a nice house in Rotterdam. And that my work is still my passion, and that I earn enough. I always want to keep doing my own thing and do and learn new things. I dream of seeing a lot of the world and doing more acting."

What does your dream retirement look like?

"As an employee, I have built up some pension, but nothing to write home about. To be honest, I haven't bothered with it so far. But as a freelancer, I'll have to arrange it myself. My mom always insists I have to sort it out. I don't know anyone my age who's already making plans for their retirement. It's still so far away. But then again, the sooner you start building up the better, so I'll have to look at the possibilities."

What stands in the way of your dreams, what are you worried about?

"I worry about the environment, but also about inequality in the world. There is a lot of polarization. I find it worrying how differently people look at things. I think everyone has prejudices, but I try to be aware of how I think and act. If someone I know says something politically incorrect, I try to say something about it."

What makes you angry?

"We often say that we've come so far, that so much has already changed, that the Netherlands is a free country where a lot is allowed. But if you look at what actually happens, it's disappointing. It's 2021 and women are still paid less than men. People with a sexual preference that falls outside the 'norm' are still verbally abused in the street. People with a non-Dutch background have fewer opportunities in life. I get angry about that. Sometimes I don't understand how it's still possible, in this day and age."

Have you ever had to deal with that yourself?

"No, as far as I know, I've never been discriminated against because of my surname. Maybe because I don't look very foreign. I am half Arab; my mother is Dutch, my father is from Syria. What did once happen is that because of my background, I was deliberately put in a kind of subsidy application for diversity. I thought that was mad, although I could laugh about it too. Spurious diversity is also a problem: companies that pretend to the outside world that they value diversity, but behind the scenes everyone's white. I think there is still a lot to gain there."

What do you do to improve the world?

"I try to be environmentally conscious. I believe it's important to be informed about this, to find out more and more and to make more conscious choices. Two years ago, I cut meat from my diet and I eat as little fish and dairy as possible. I'm also more conscious about clothing. I give old clothes away to people I know or sell them online so that someone else can still enjoy them. I try to buy more second-hand, because apparently, certain large clothing stores do not produce those clothes sustainably. I've heard that returned clothes often have to be incinerated because that would be cheaper than recycling. This also has to do with our buying behavior, so we should not close our eyes to that.

When it comes to flying, I'm a bit less environmentally aware if I'm honest. I once looked into whether I could go to Spain by train instead of by plane, but a train ticket was more than twice as expensive. And it takes much longer to get there too. I'm sorry, but in that case, I'll take the plane."

But he did not kill her,

Because between dream and action,

Laws stand in the way

And practical objections.

(from: Willem Elsschot, The Marriage)

Retirement might not be something generation Z spends much time thinking about, but they are the generation of the future. What do they dream of? What are they doing to achieve that? And what is standing in their way? In the series Dream and Action, we let young people speak about what the present and the future look like to them. Today, freelance copywriter Nina Keijzer (20) from Ridderkerk: “What do I worry about regarding the future? It would be better to ask: what don’t I worry about?”

Who: Nina Keijzer (20)

Lives in: grew up in Rotterdam, currently lives in Ridderkerk with her parents.

Works: as astrologer and copywriter. “My work is the most important part of my life right now. It keeps me busy every day. I get that from my parents. They both always worked full-time, just like my grandparents; it’s our nature to work really hard.”

Likes: writing, reading, working out, watching Netflix and playing piano.

What do you dream about?

“I’d like to publish my own books. If at all possible, I’d like to mean something to society that way, make a difference. If I can help someone in some way, I am satisfied. To me, being successful is the freedom to do what you enjoy doing. Sure, it’s nice to have a lot of money too, but it’s not the most important thing.”

How do you envision your future?

“I really think about my future too much. More than I want to. I talk about the future every day with my best friend. You’re still young, people say, don’t worry. And that is true, but we can also see that things are not getting better. How can you not worry when you have a huge student loan to pay back and you have no chance of getting a mortgage? I don’t see it happening, but I hope to be able to move out and buy a nice house for myself in about five years. In a perfect world I would not have any money worries, I can accrue a nice pension and I don’t have to worry about the future.”

What about when you are retired?

“I’m not looking forward to still having an office job and still working hard when I’m 70. I’d rather retire sooner. A passive income would be nice. If I stay self-employed, I will have to set up a pension for myself. That is something I’m already worrying about. Life just keeps getting more expensive and wages don’t seem to go up at the same rate. If houses get even more expensive, how are we going to pay for that? My generation is really into investing; you’re suddenly seeing that everywhere. I want to do it too. I hope I will be able to save enough to be able to sit in the garden without worries in my old age. But money might look very different in fifty years. That may sound like science fiction, but we already have bitcoin and other crypto coins, so the idea is not that far-fetched.”

What is your dream for the Netherlands?

“We work a lot in the Netherland. It would be great if that changed; that we start working less for the same money. It would be a nice experiment. Everyone wants to work less for the same amount of money. You might get as much done in 30 hours as you do in 40 hours, because you only have a limited number of productive hours in a day, and you can’t be focused non-stop. It could also make a big difference in terms of burnouts. I enjoy my work and it is important to me, but the balance between work and leisure should really be more towards leisure. I think that my generation is very aware of that: you only live once and there is more to life than just work.”

What kind of world would you like to live in?

“I hope that big companies and countries will want to take more responsibility. A lot still needs to be done to reach the climate goals. It is a serious matter, which in my eyes is being treated much too casually. It’s great we want to go to Mars, but let’s take better care of the Earth first.”

What worries you when you think about the future?

“It would be better to ask me what doesn’t worry me. Climate change is on my mind a lot. What if it makes the sea level rise even higher in the Netherlands? And I watched a documentary where they were saying there won’t be any fish left in the sea by 2050 if the fishing industry keeps going at the current rate. That scares me. I should hope there will still be fish in the sea by the time I’m 50. What are we going to do now to prevent that?”

What stands in the way of your dreams?

“The housing market worries me. How on earth am I ever going to get a good mortgage? The price of houses is rising like crazy in the Randstad and everything is selling above the asking price. My generation and the generation after me will have to bring at least 20,000 Euros if we want to buy a nice house. My mom lived on her own when she was 18. She rented apartment for 250 guilders a month. When I hear that, it makes me want to cry. You can’t get anything like that for even 500 Euros in the Randstad now. We can’t keep going this way. Soon we will still be living with our parents well into our thirties, because we can’t afford to buy our own homes.”

Are there any other obstacles?

“Yes, we also have huge student loans to pay off because they stopped providing the basic study grant. Some of my friends owe 60,000 Euro and they have no idea how they are going to pay it. Everyone thinks my generation is all about having fun, but my friends are working like fiends to be able to pay for everything. People forget how expensive everything is; even just renting a room costs a lot of money. It would be wonderful if they brought the basic study grant back. That would eliminate so much stress. We are the future and governments should invest in the future.”

What are you doing for a better world?

“My parents and I are very consciously working on sustainability. We don’t have any plastic shopping bags and bottles of water anymore, we throw away much less than we used to and buy organic whenever possible. We are also all vegan, we only eat plant-based food. My mom became a vegetarian when she was 14. I became a vegetarian when I was 15, but a few months later I decided to go vegan. Both of my parents said, okay, we’ll do it too. I’m very grateful for that. Even my dad quit eating meat, dairy and eggs cold turkey. Plus, every day, I go for a walk and pick up any garbage I come across on my way.

One person can make a difference, but at the same time, I think that the responsibility is put on the individual too much instead of on the big, polluting companies. I hope that is going to change in the coming years. Because we can all stop buying plastic straws, but as long as cucumbers are all sold individually wrapped in plastic, that is not going to make that much of a difference. I also think it’s too bad that sustainable is often more expensive. That makes a lot of people go for the less sustainable options.”

Is growth always good? Comprehensive wellbeing economist Rutger Hoekstra from Leiden, has his doubts about that economic mantra. Hoekstra feels it is time to start defining growth differently. He is looking for alternatives that will allow us to measure social progress better. He believes we need a new economic story, in which wellbeing, sustainability and equality are the focus. But how do you make that happen?

What’s wrong with the gross domestic product (GDP)? Not much, Rutger Hoekstra says, as long as you use it to measure whether the economy is growing or shrinking. “Economic growth should not be a goal in and of itself, but that is what it is currently. There is more to life than money. The GDP is not an indicator of wellbeing, wealth distribution and sustainability within a society.” Hoekstra, who is connected to the University of Leiden and the United Nations University as an economist, thinks the current system is outdated. He studies alternatives to the GDP, and also wrote about this in his book Replacing GDP by 2030, which received high praise.

Continuous improvement

Since World War II, there has been a deep-rooted idea that the economy and growth are important. “A hundred years ago you hardly heard anyone talk about economics or economic growth. The latter term has only been around for fifty years. Now it has become almost a synonym for society. Everyone has an association with it. If the economy is growing it is good, if it is shrinking it is bad. Because of that idea, we are constantly asking ourselves how we can improve the economy, how we can grow faster, and what role we have in driving that economy. In that sense, human beings are at the service of the system.”

However, economic growth is not necessarily good, Hoekstra argues. “It has been very good for our quality of life in the past centuries. And for poor countries, economic growth is still good. There, growth is necessary. But particularly in the Western world, that is not the case. If you are very poor, more money contributes to your wellbeing, but there is a limit to that, research shows. At a certain point you have enough money to live a good life and you do not become happier by having more. Moreover, the current growth goes hand in hand with sustainability problems, such as climate change and loss of biodiversity. In addition, inequality has risen in many countries in recent decades.

By this I do not mean that all sectors should grind to a halt. Industries that are shaping a sustainable future may continue to grow rapidly; that is where pension funds can earn a return, for example. But the mantra ‘growth is good’ does not apply to the entire economy.”

Shift the focus

So what is the alternative? Shift the focus to increasing welfare, sustainability and equality, Hoekstra believes. Those should be the social goals. We can achieve this in concrete terms by, for example, considering a four-day work week throughout the Western world, says Hoekstra. “Over the years, we have started to work less and less. In the 19th century, the common man still worked seven days a week. After the war, five days a week became the norm. But in ten years, four days a week could well be the norm. More free time benefits wellbeing. And with less income, people will automatically consume less, which in turn is good for the environment. That kind of relationship between wellbeing and sustainability is something to think about. Income is just a means of shaping the future.”

Carefree retirement

A carefree retirement is also definitely part of welfare economics, Hoekstra says. "Including the present. If you have worries about the future and whether things will work out in your retirement, that can lead to stress long before you retire.” But what does ‘carefree retirement’ look like? That is something pension funds need to make more transparent, Hoekstra believes. “If you only look at it from an income perspective, it is often so abstract. Okay, you get a certain amount, but what does that mean in concrete terms? What will you be able to buy with it by that time? The term ‘carefree retirement’ suggests a certain standard of well-being, but I rarely see this concept fleshed out. You just have to trust that it will be enough.”

Unfair system

And what about equality? Hoekstra quotes writer and historian Rutger Bregman, who at the World Economic Forum in Davos, Switzerland, frankly confronted the rich, mostly tax-avoiding attendees with the instrument to fight income inequality: “Taxes, taxes, taxes”. Especially the rich and multinationals should pay more taxes, Hoekstra says. “We have to put the pain where it’s caused: in the richest part of the Western world. Warren Buffett (one of the richest people in the world, ed.) once called out that he pays less tax than his cleaning lady. There is also increasing public outrage about the fact that multinationals pay so little tax. Bookstores pay taxes, while Amazon, which delivers those same books to your doorstep, pays nothing at all. The current system is not sustainable or fair. Even at the top, people are starting to realize this. The picture is tilting, but it’s slow going.”

Reach an agreement

The current economic narrative, with GDP as its starting point, was formulated by economists after the stock market crash of the 1930s and the war. It was crisis time, people yearned for a way out in which jobs and income were central. That was a decisive moment. In that respect, the corona crisis can be an opportunity to bring a new story into the world. But then there must first be agreement on what exactly that new narrative is, Hoekstra says. “The community suggesting alternatives is far too fragmented. There are hundreds of systems to measure wellbeing, sustainability and equality. The human development index, the broad prosperity monitor, sustainable development goals, the genuine progress indicator, the better life index, etc. And everyone thinks their own system is the best, while the overlap between all these systems is enormous. That is not helpful. For lay people, it’s impossible to make sense of it all. If we can’t achieve harmony among ourselves, there’s no chance of landing a different story with the general public.”

Speak one language

In that respect, as a community, they would be better off following the example of the economists they like to hate so much, Hoekstra believes. “We have to speak one language, just like the economists do. When it comes to terms like import, export, income and consumption, everyone around the world knows what they mean. In 200 countries GDP is measured in exactly the same way. That is clear and effective. We, as a community, do little in return. There are no global definitions for wellbeing, sustainable development or broad prosperity. It’s a mess. That frustrates me. We need to reach agreement if we are ever going to be taken seriously.”

Hoekstra sees a role in this for the United Nations, which also helped lay the foundation for macroeconomic science after World War II. “In fact, the situation in the 1930s was exactly the same. At that time, the UN said: there is not much we can do with this. You have to choose one system. If the UN had not done that, GDP would not have come into being. I think they should start a harmonization process again. The time is ripe for that.”

Working on harmonization

Hoekstra is currently developing this idea with the UN. “I don't want to give the impression that we have already started that harmonization, but we are preparing to enter the harmonization period. Nobody benefits from this constantly expanding mishmash of systems. We should not be looking at the differences, but at the similarities; working towards a common goal. There needs to be one global measurement system for wealth distribution, well-being and sustainability. I am exploring what the fundamentals of such a system should be, what it could look like. We are calling it the WiSE Transformation Initiative. WiSE stands for Wellbeing, Sustainability and Equity.”

So, one language and one system. With the goal of increasing wellbeing in a sustainable, fair way. What does Hoekstra think the future should look like if that goal is achieved? “That is perhaps the biggest challenge, to make it clear what it means for people in concrete terms.”

A turnaround is already underway in New Zealand, says Hoekstra. “They draw up their budget with the welfare of the population as the starting point. They look at which groups in society are struggling and reserve a portion of the budget for them. All the ministries can submit proposals for how the money should be spent, and each plan is evaluated for effectiveness. In this way, the ministries compete with each another for the best idea. This method has been enormously successful there. New Zealand is also working with other progressive countries in the Wellbeing Economy Alliance. Concrete steps are being taken worldwide.”

Sustainable ideas

Another, smaller-scale idea for a sustainable, fair future comes from England. How do we get people to fly less? Increasing the tax on airline tickets may sound like a good idea, says Hoekstra, but it is mainly the common man who suffers. “People who are very rich can easily afford it and will not fly less. But suddenly Joe Blow can no longer go on vacation. From an environmental point of view, it doesn't matter who flies, but from a sense of fairness, of course it does. This problem was put to a citizens’ panel in England, which came up with a better idea: what if you make the tax progressive? For the first time you fly in a year, you pay a small amount. And for each subsequent time, you pay more and more. That’s a fairer system.”

With respect to sustainability and equality, we as a society are actually already on the right track, Hoekstra believes, “although it could be faster.” Pension funds, he says, can make a big difference by putting the billions in pension money they manage into sustainable companies. “There is so much money involved in that; it greatly affects wherever it is invested.”

Phased retirement

In terms of wellbeing, the four-day work week is an example that will appeal to many people. And why do we often retire so abruptly in the first place, instead of gradually working less in phases? “The question is whether it is good, from a wellbeing point of view, to step out of working life cold turkey. For many people, work is more than income. It is also part of social life and the enjoyment of life. In fact, we now write people off very abruptly, from five days to zero sometimes. Surely it must be possible to do that differently.”

What the welfare pillar should look like next is more difficult for Hoekstra to explain. “The best thing would be for everyone to have the opportunity to develop and to live their dream life, within the natural boundaries that our earth imposes on us. But what exactly would that look like? We need more research and social dialogue for that. If we can clarify this more, I think a large group of people could get excited about a narrative of wellbeing, sustainability and equality.”

APG-economist Charles Kalshoven also writes about economic growth in his new column. You can read it here.

How will we be living in 2041? In a series of six articles, we are painting a picture of the Netherlands of the future. How wealthy will we be then? How will we be living? How will we be working? How will we be consuming? How will we be spending our leisure time? In this episode we are wondering: How social will we still be by then?

How social will we be in 2041? Will we still have any consideration for each other? Or will individualization have progressed to the point that we have nothing left for a neighbor? Will there be such a thing as solidarity between rich and poor, old and young, fat and skinny, sick and healthy, man and woman, Dutch person and newcomer? In the media we read about a growing lack of understanding. About groups that are in stronger opposition against each other. Will it soon be every man for himself and shouters before all of us? Since the outbreak of the corona crisis, and especially in times of lockdown, according to the Social and Cultural Planning Office (SCP), we sometimes find it difficult to look beyond the boundaries of self-interest. Take volunteering at the community center or at the sports club. In Europe, we were ahead for a long time, with thirty percent of the Dutch being active as volunteers. In the midst of the lockdown, half of them indicate that they have less time for this. The number of people participating in demonstrations or joining movements has increased. The question is whether we are doing this out of solidarity with those in need or for own interests.

Is our willingness to selflessly do something for others diminishing? According to the SCP (Social and Cultural Planning Office) we are experiencing more hardening in society, but as yet no significant decline in solidarity.

And Trudie Knijn, emeritus professor of social sciences, does not see things in such a gloomy light either. “There are some things we currently can’t do as well for others, but we still seem to be aware of people with needs. Lonely elderly people, undocumented people, vulnerable young people. A charity like the Food Bank has been running at full capacity throughout the crisis.”

Solidarity with whom?

To reassure you in advance: no matter how self-centered we might be in 2041, there will always be such a thing as "passive solidarity”. We all pay taxes. With taxes, the government can put together support packages again during a new pandemic and enforce solidarity with lockdowns. And even if new plagues do not occur, the state will continue to redistribute wealth. The only question is: who gets what? “In a rich country like the Netherlands, the population has traditionally been in favor of social protection for the elderly, more so than for the sick and people with disabilities,” Professor of Social Policy at the University of Leuven Wim van Oorschot tells us. He is working on the question: who is entitled to what, in our eyes? According to him, our feelings of solidarity are even lower for the unemployed than for the sick and disabled. For the poor even lower and for immigrants even lower. Van Oorschot wants to say: not every needy person can count on the same degree of solidarity. In the eyes of the law, everyone is equal, but when it comes to the claim one makes on subsidies or the support people get from institutions or society, some are more equal than others. Widows more equal than divorced women, divorced mothers more equal than divorced fathers, workers with a permanent contract more than flex workers, families more than singles. “Our willingness to help others depends a lot on how we see that other person. And whether we can identify with that person’s needs.”

We judge a needy person's "worthiness to receive help” on five criteria. Control, attitude, reciprocity, identity and need. 'CARIN,' Van Oorschot's own term. We are more willing to help a needy person if we feel that he does not have himself to blame for being in needy circumstances, if the needy person is grateful instead of demanding, if the needy person gives something in return for the help received, if we can identify with the needy person ourselves, and if we think we can estimate the degree of need. “We are conditional cooperators,” van Oorschot says. “We contribute our fair share when we see that the other person is doing the same.”

Worthy of help

Conditional cooperators: I'll scratch your back if you scratch mine. How enduring is this conditional solidarity? Because lately even our solidarity with the elderly has been under pressure. If the elderly make demands on Old Age Security and pension or occupy a large house at the expense of young families, we see them less as "worthy of help". Young people think: those old people don’t have it so bad. They are squandering our money, eroding the foundation of the pension system. The "paradox of redistribution" is what the American sociologist Richard Coughlin calls this. Will solidarity as the basis for the pension system still be strong enough in 2041? And if we are already beginning to feel less solidarity for the elderly, what will be left for migrants? Is the welfare state only “for us”?

     These are all difficult questions. This is another reason why we will gladly entrust solidarity to the government in 2041. It does regulate the supervision of the rights of vulnerable fellow citizens. It redistributes wealth. But we must be careful, warns Van Oorschot, that in doing so we also transfer solidarity “as a value” to anonymous institutions. To governments that stand between “donor” and “recipient”. Because as the feeling of gratitude disappears for the “recipient”, the sense of purpose disappears for the “donor”. Solidarity from communal pots can eventually undermine the legitimacy of the welfare state.”

Reinventing solidarity

Back to the original question: what will solidarity look like in 2041? More visibly socially engaged pension funds and other, previously anonymous institutions? A social service obligation for young people? Will the government hand out credit points and deductions to volunteers? Or will the business community lead the way? Or social enterprises that combine ideal and profit? Or will it come from within ourselves as the volunteer base ages and there is less volunteering action from young people? Are we going to rate and like each other at socials? In 2041, will we monitor each other's efforts? Will this move towards social control or coercion?

Trudie Knijn conducted European comparative research into people's motivation to join a solidarity initiative and already saw that we are not doing so badly in the Netherlands. Take the Food Bank. Both the volunteer and the end user are interested in the contact, in the exchange. The feeling of belonging to something. It is therefore important that we appreciate an initiator or volunteer and involve them in activities. Many charities date back to the 1990s, when the government left many gaps. They had to make do without support for a long time. Now they get subsidies, but in return they have to comply with procedures. Top down organized organizations. Demarcated tasks, red tape. Government organizations in disguise. That can repel people.

Can we learn anything from the social movements that the SCP thinks we want so badly? We have seen many examples of this on TV recently. Virus madness, farmers on tractors. Angry people standing up for themselves - but also cheerfully dressed climate protesters, Black Lives Matter and moving solidarity actions for nurses. Will we organize solidarity more like a movement on the way to 2041? It could well be, Knijn believes. “Movements strive for impact; their goal is a quick, lasting influence on society. Unlike charities, they are organized flat, from grass roots. There is more democracy and more freedom. Everyone has a say, and every contribution is valued. It gets to the heart of the social beings we will always be: we want to belong somewhere.”

Are sports associations and allotment gardens already using social media intelligently? “There is still room for improvement,” says Van der Aalst. Old-school clubs still have the greatest difficulty in attracting volunteers and members. If they still want to be around in 2041, administrators and bosses must abandon the hierarchical approach, expecting volunteers to provide the hands. During these Covid times, gyms are already proving have a better understanding. They are offering online work-outs and customized programs. But your membership base, or rather, your community, really thrives in loosely-bound connections, as we are seeing in urban culture & sports. There, the adage ‘each one teach one’ applies. Everyone is teacher and student, trainer and player, in an open culture where people respect each other and give each other the space to set up and promote events. In our free time, we no longer want to just passively experience something. We want to experience it by actively adding something ourselves, learning, changing, improving, having meaning.”

The new hedonism

There is that word again, finally. Experience, the experience economy. For a long time, we didn't hear about that promise. It was heard mainly in the tourism industry. We used to want to be mainly entertained on day trips and vacations, to experience things in the sense of undergoing them, but now that is no longer enough. It is a little different now: we now want to participate, to engage. To contribute something positive to the local population by buying local products. Painting in Greece, cooking in Italy, tending cows at a shelter in Estonia, rescuing stray dogs in Bulgaria, helping refugees on Morea. “A small-scale, but rapidly growing form of tourism,” says Richards. In our day-to-day, fragmented time off we are busy driving the children to their activities and fulfilling other social obligations that have to be rushed through. During our two weeks of vacation, we are still too restless to do nothing at the beach all day. That is why we mix lazing around with learning, relaxation with development.”

Thus, our hedonism is joined by ‘eudemonism’. A higher kind of bliss that - according to the Greek philosopher Aristotle - can only be achieved through acts that promote the well-being of others. “This already showed up in the 1960s in tourism,” Bastiaansen says. “Then it flattened out in the neoliberal me, me, me times, but now it’s making a big come-back.”

Van der Aalst is also seeing that an awareness of the climate catastrophe, the depletion of the earth and the degradation of the neighborhood makes more people want to get involved in something. The number of one-person households is increasing, people are increasingly getting away from old social structures. They automatically start looking for new meanings and commitments. This can be done on a small scale, as a buddy or caregiver, but also in groups, by collecting litter together, fishing plastic out of canals, cleaning up the street. It is less every man for himself. We are seeing things less as consumers and more as citizens. But we also want to have fun. I expect that more and more professional events will be created around this, with music, catering, training, and competition elements. Connecting Dutch people and newcomers, allocating budgets, challenging them to develop attractive concepts from diverse cultures together, scaling up the winning concepts.”

Turning inward

In order to escape all the events and social pressures, the leisure desires of others will be limited to doing nothing. Turning inward, doing things that don't cost anything. At most an hour’s walk in nature, as we began to do en masse during Covid times. But Bastiaansen does not think that this influx into nature is here to stay. “A year and a half of lockdown is not enough to allow nature experiences to nestle deeply in our system. As soon as the furniture stores and amusement parks re-open, the woods will empty out again.”

Richards doesn’t think so. He points to the greatly diminished “social legitimacy” of flying vacations. “Flying is the new smoking. And after Barcelona and Amsterdam, other popular cities will also start banning tourists. So, people will be going on staycations, discovering their own local areas. But nature will pay for that. Will nature be turned into a reserve in order to protect it from the crowds? Actually, we have no nature here at all. No primeval forests or rock formations. In the Netherlands, we create nature, such as the Oostvaardersplassen. Even though they are not open to the public. I foresee State Forestry Services or Nature Monuments putting a fence around our most beautiful forests and charging an entrance fee.”

Just like at the Safari Park, we’ll be riding in quiet golf carts on a track through abandoned fields and pastures returned to nature, where wolves and bears roam once again. Or will that not be necessary? Will we accept that many experiences are no longer real and settle for our VR glasses, safe at home on the couch?

“China already has a virtual zoo, Guangzhou Zoological Garden,” says van der Aalst. “I expect we'll see more of this as we move away from keeping animals in cages, just as we are no longer allowing this in the circus.”

Real life

But no matter how virtual it gets, Van der Aalst thinks, we will always want to share our leisure experiences physically with others, in real life. Games, festivals, concerts and events are leading the way in this respect. They are already more hybrid in design, less tied to place and time. Do you remember hunting for virtual Pokémons? That was already one continuous experience. More than just a live stream, the Roadburn metal festival in Tilburg now offers a platform to its loyal visitors, seventy percent of whom come from outside the Netherlands, so that they can have fun together before and after the event. The rapper Travis Scott appeared as an avatar in the game Fortnite for a ten-minute concert, attracted thirty million gamers and earned sixteen million Euros from the sale of merchandise and fees. He would have had to do twenty live shows to earn that much otherwise.”

There are plenty of earning models. Even though we, as well as the artists, are yearning for a live performance. “But even live, the digital will mix with the real,” predicts Van der Aalst. “In the Ziggo Dome we will all be wearing AR glasses while watching Michael Jackson or another dead artist. The ‘real’ very last concert of the Rolling Stones is no longer something unique and one-off. Because there are so many options, we are better informed of where else we can have experiences we like, and we will be going out more and exploring more again.”

Illustration Joyce Schellekens

How will we live in 2041? In a series of six articles, we describe the Netherlands of the future. How rich will we be then? How will we live? How will we work? How will we consume? How social will we still be then?

In this fourth episode, we are asking ourselves: how will we spend our leisure time in the future?

Did you know that out of the 112 hours we are awake every week, we have as many as 44 hours of leisure time? That sounds like an ocean of time to get out and spontaneously do fun things with friends. To go out and explore. But when we look at how we actually spend that free time, aside from lying around on the couch and staring up at the ceiling, a pretty ingrained pattern emerges. According to the Social and Cultural Planningbureau (SCP), 40 percent is used on ‘media use’, 30 on ‘relaxation’, 20 on ‘social contacts’, and the rest sometimes on ‘volunteer work’. Greg Richards, professor of leisure studies in Tilburg says, “And besides our media use, we also limit everything strictly to weekends, because during the week is all about work. The structure we give our live has been the same for the past fifty years.”

Will that still be the same in 2041? Peter van der Aalst, teacher of Leisure & Events at the Breda University of Applied Sciences believes that “by 2014, everything will be merged together”. He believes that the figures of the SCP reveal a dynamic in our leisure time that has been going on for a while. “Everything is mixed together. Twenty years ago, we couldn’t imagine ourselves being connected to the entire world from a small computer on our lap while traveling in a train, arranging a vacation on the spot, based on the opinion of many other people all over the world. Futuristic? These days, we just call it a smartphone and our eighty-year-old grandmother has one too.”

Mixing up free time and work

Not only is the way we spend our leisure time going to blend, but also our work times and leisure times will be merging. In 2014, will we even be able to still distinguish between the two? With AR glasses on, will we be outside somewhere, virtually scrumming with coworkers while we’re actually at home on the couch in our underwear playing a board game with our kids? “It is becoming increasingly difficult to disconnect ourselves from our work,” says Marcel Bastiaansen, professor of leisure and tourism. “As a result, our leisure time is becoming increasingly fragmented: splinters that we no longer experience as leisure time either. It is possible that in the future the amount of leisure time will continue to increase, but not necessarily the quality.”

Is it also possible that mixing up less work and more leisure time will lead us to see our work as something on the side, like a hobby? “I’m afraid that is only true for the creative professions, where we already experience a lot of autonomy now,” Van der Aalst says. “The digital nomads, who provide their communication advice from a sunny resort or a vacation home in Drenthe.” Or will the simple professions also get more free interpretation of their craft? The artist-painter, the cleaner who also arranges flowers and decorates the house differently? Or the other way around: will amateurism and unpaid volunteer work be reimbursed in the future? Transferring the last toads, counting the last butterflies.... According to the SCP, do we really want to spend less of our leisure time gaming online? At least, we are saying we want to spend more time with people physically and we want to do more volunteer work.

“Saying something is not the same as doing it,” Bastiaansen knows. “I do think we will increasingly become more conscious of what we are leaving all around us.” Van der Aalst points out that an important aspect of online gaming already is building and maintaining social contacts. “Often international, worldwide. And who is not in various Whatsapp groups for family, friends, coworkers or communities for specific areas of interest? These often also organize meetings in real life. Our social contact is only increasing, even though it can sometimes be experienced as fleeting.”

Primitive

In the year 2000, American professor Robert N. Putnam wrote the book Bowling Alone: The Collapse of American Community. Although online life was primitive at the time, he saw how our social structures were increasingly disintegrating, how fewer and fewer people cared about each other. But in 2016, when the Internet revolution was already happening, he wrote an additional chapter to it, describing with hope the many initiatives he saw suddenly emerging. How small communities are reinventing old forms of volunteerism and social activism. Assisted in part by our smartphones.

Housing corporations need billions to make their existing rental homes sustainable and build more homes. Through the auction site LIST Amsterdam they can now borrow money easily and quickly. APG Asset Management is a co-initiator of this fully digital loan platform. “With fifty approved loans worth half a billion Euros, this is already a great success.”

How do you find affordable rental housing if you have a modest income and can forget about buying a house? This is becoming increasingly difficult in the Netherlands. Tenants often have to wait years to get a home. That is why the housing corporations want to build about 34,000 more social rental homes each year; that is double the amount they've had built in recent years. In addition, the pressure on housing corporations to make their (more than two million) existing homes more sustainable is increasing, because in 2050 all housing corporations must be CO2 neutral.

New financing source

That can only mean one thing: the 300 housing corporations in the Netherlands will need many billions in the coming years. How will they get that money? Rent increases offer little solace because rents in the social rental sector are capped. In practice, the corporations now borrow money mainly from two sector banks, the Nederlandse Waterschapsbank (NWB) and the Bank Nederlandse Gemeenten (BNG). “A third source of funding has now been added with the platform LIST Amsterdam. Through this online marketplace, corporations can apply for a loan very easily and efficiently, compare the offers from institutional investors and take out the loan that is most favorable for them,” says Hans van Westrienen, senior portfolio manager of APG Asset Management.

Taking advantage of the platforming trend

He explains that APG was approached a few years ago by Amsterdam-based entrepreneurs Adriaan Hendriksen and Erik Wilders. “They saw opportunities for an online lending platform where housing associations could make direct contact with institutional investors for their financing needs. Without all kinds of intermediaries, such as brokers; that immediately saves a lot of money. We thought it was an excellent idea and helped them set up this platform.” In doing so, LIST Amsterdam is responding to the trend of platformization: after all, we have become accustomed to online platforms for ordering food, arranging a cab or an overnight stay, or hiring a handyman. Lending money through crowdfunding platforms like Geldvoorelkaar, Kickstarter and Voordekunst have been around for years, but a platform for large, long-term loans is new, observes Van Westrienen: “It’s simple: the housing association puts in its request for money directly to institutional investors via LIST Amsterdam. Regular banks are not involved.” Wouldn’t APG have wanted to set up this platform itself? “No, in this case the rule is: stick with what you know. Setting up an online auction site like this is also subject to strict conditions, based on legislation and regulations.” 

More competition, lower interest

The platform clearly meets a need: after two years, some fifty loans have been traded through LIST Amsterdam, with a total value of half a billion Euros. Why is APG participating? Van Westrienen: “We are happy to make these investments through this platform because our clients, the pension funds ABP, bpfBOUW, SPW and PPF APG, not only want to provide long-term loans with a stable and reliable return, but also want to contribute to solving the housing shortage and making homes more sustainable. Moreover, they want to invest more in the Netherlands where possible.” Van Westrienen has had a lot of praise from the housing corporations. “They can now choose from more financiers. And because there has been more competition, the housing corporations pay a somewhat lower interest rate than before.”

Return, risk, costs and sustainability

APG usually bases its investments on four criteria, Van Westrienen explains: “The risk, the return, the costs and the sustainable, social character of the investment. We certainly meet the last criterion - by investing through LIST Amsterdam - given the desire of housing associations to use these loans to build more rental homes and to make existing homes more energy efficient.”

As for the risk; the Dutch State guarantees this type of long-term loans to housing corporations. This is done through the Social Housing Guarantee Fund (WSW), a construction that is interesting to institutional investors like APG. "Because of this guarantee, the risk for us is low. The interest rate on these loans is slightly higher than on Dutch government bonds, so on balance we can realize a slightly higher return at a comparable risk. At the same time, the return on these low-risk loans is relatively low, which makes them less attractive to the ordinary large banks. But that low return is not a problem, in part because by investing through LIST Amsterdam, we score so well on the other three criteria.” And what about the fourth criterion, the costs? “Those are relatively low, because the whole auction process is automated and very efficient.”

Simple, digital security system

This automation is possible in part due to extensive standardization, Van Westrienen explains. “Normally, you can incorporate all sorts of tailor-made options into these kinds of large loans. For example the option of early repayment, a variable interest rate during the term, or an annuity structure. With the loans through LIST Amsterdam you only have to deal with a template on which you can enter the term, the amount to be borrowed and the interest rate. That’s very straightforward.” The system works surprisingly simply: at eleven a.m., on fixed days during the week, investors are shown a template on which corporation X has indicated how many million Euros they want to borrow. Interested investors then enter the interest rate they want for that loan. The corporation then gets five minutes to tick which interest rate they prefer, and thus automatically which investor they will go with. And then the deal is done. “We have no contact with the housing corporation in question. We used to process these types of investments manually in our administration. My coworkers in Trade Processing, together with our Integration team, have ensured that everything runs digitally and in a standardized way. Even the signing of the required signatures by all parties is now done electronically, via AdobeSign. Especially now that almost everyone works from home, this is extremely convenient. This digitization means fewer errors, more speed and lower costs. Good news for the housing corporations and for our clients and their participants that we invest for.”

“LIST Amsterdam is very good news”

Housing corporation De Alliantie was the first to take out a loan through LIST Amsterdam in 2019. Jan Michiel Aeilkema, treasurer at De Alliantie, said this about it on the ABP website earlier this year, “It is our mission to ensure sufficient social rental housing. In our case, ninety percent of our stock consists of homes for which rents are capped. We can’t just raise those rents to pay for sustainability, for example.

We try to borrow money as cheaply as possible, at the lowest possible interest rate. Because we don't need brokers when we work through LIST Amsterdam and many processes are highly automated, we also have fewer expenses when attracting funding this way. And if we don’t like the offers we get on the platform, we can always approach the sector banks.”

What does Aeilkema think of LIST Amsterdam? “For housing corporations, the social housing market and the large group of people who depend on it, this is very good news. The cheaper loans and lower costs mean that we can keep housing affordable and make it more sustainable. So it's a very good thing for the Netherlands.”

How will we live in 2041? In a series of six articles, we sketch the Netherlands of the Future. How rich will we be? How do we live? How do we consume? How social are we still? How do we spend our free time? In this third episode, we ask ourselves: how will we work in the future?

Working in 2021: that means sitting and waiting in a building from nine to five. That is, if we are still allowed to come into the office during a pandemic. At the office, we think of home and at home, we long for the office. But American futurologist Thomas Frey believes that in 2041, after two more disruptive virus pandemics, the many vacant offices have now been converted into homes. And because the government still, to our despair, demands that we work at home, at the kitchen table with children, we have found a solution, according to Frey.

"By then, we'll be working from a mobile office. Everyone enjoys peace and concentration in their own, renovated camper. A mobile workplace with darkened windows and stable Internet. Can be set up at will as a workplace, film studio, tattoo parlor, a base for a raging reporter, pawnshop, fertility clinic or simply as a mobile office for a knowledge worker. Our desk on wheels is full of technology and robotics, with whom we chat just as pleasantly as with that colleague at the coffee machine. Algorithms propel us through the day, dots on the horizon markers keep us focused on the goals. As a moving billboard, we advertise our business, pick up an appointment for a meet-up and drop it off before the next one starts. Although we mainly meet virtually, with VR lenses that immerse us in a laboratory in India, or with AR glasses that lay a layer over the production facility to be renovated in China."

Knowledge worker

Okay. Let's just take a step back. We'll try to hook up with Frey again later. We will still need his optimism, because we will first dive into the prospects of the 'knowledge worker' with philosopher and digital fitness pioneer Martijn Aslander. And those prospects aren't particularly rosy. "In twenty years, most of the Netherlands will call themselves knowledge workers," says Aslander. 'We all gather, process, analyze, cluster and share knowledge all day long. But hopefully, we'll go about it a bit smarter than now.

At the moment, the knowledge worker works as if he were a conveyor belt worker. Someone who delivers a certain production on one specific working day. While his best ideas are born in the shower, we expect him to spend all day looking at a screen. We're effectively forcing him to put on a play.

According to Aslander, those days are coming to an end. "We're in these hip open-plan offices with slides, once forced upon us by old gurus of 'the new way of working'. Disastrous for our concentration. All day long, we're distracted by stimuli and talk and get nowhere. Take our working hours, for example. Twenty percent of us are at our best in the evening, whereas twenty percent function optimally in the morning at seven o'clock. Then why do we judge each other on fixed working hours? No wonder so many people suffer from stress and burnout, public health enemy number one."

Time confetti

Didn't the 1950s promise us that automation would take a lot of work off our hands? Why does it take so long before we can spend our days in idleness? "Simple," says Aslander, "we've been standing still for seventy years. At the time, we sat at a desk with some drawers, a couple of mail trays, a telephone with a cord, and a typewriter. Now, we're still tapping a keyboard - with two fingers, because we've never learned to touch type. We use a plane to drive on the highway."

Aslander made a study of the errors of the knowledge worker. He says we create documents throughout the day, send them to twelve others who make changes to them, and then save the new version separately. "We think this is work. One phone call down the line and we have a perspective that immediately renders the latest version worthless. In between all the time confetti - checking e-mail, texting, tweeting, chat - we shove around paper and put it away in folders and sub-folders, which all look alike. We hide bits of information all over the place, like squirrels do with acorns. But… where did we put it all? Our spatial and visual recall is the most highly developed skill of our brain, but it's not being used."

Aslanders' point: we have forgotten the purpose of work. We confuse it with a fifteen-year steady job doing the same trick. Okay, we network more than before and we now meet standing up and we scrum agile. "But what are the benefits if we can't access the right information right away? A quarter of our energy is spent on thinking. It's a shame to spend that on tracking down that one observation, that golden idea that you sent yourself in an e-mail last week."

Monetary capital

When we put money in the bank, Aslander says, our monetary capital grows. But we put our information capital in an old sock. We hide that sock under the mattress so that no one can reach it, including ourselves. "In the meantime, the amount of information that comes our way every day is increasing rapidly. We must therefore process information more intelligently. But we don't learn that skill at school or in organizations. If knowledge work is a craft, few have mastered it. Most of us just plod along. Which of us has adapted to the dynamics of 2041 in time and survives the competition? I think the speed and ease with which you're of value to others will determine your success. Take care of your information capital and your social capital, so that you are less dependent on monetary capital."

In the meantime, our employers are preparing for the digital future by delving into AI, Big Data, blockchain. Exciting developments, according to Aslander, but pointless if employees don't even grasp the finer points of Outlook or Excel. "We're not digitally fit. We can't even deal with the tools we currently use: an Ikea set of Allen keys to build an entire house with. If you look at our work tools from the future, most of them will drop out. Tools must store information, be searchable, sortable, able to organize, reorder, metadatable, and shareable. I use Evernote. I scanned everything I had using a super scanner, 93,000 notes in total. I found my swimming certificate and that particular taxi bill from 1989 in just a second."

Welcome to 'the new work reality'. Only when we have the basics in order and comply with a minimum of digital hygiene, if we can access everything immediately and everywhere and have knowledge and connections ready - then we'll be ready for the skills we can use to distinguish ourselves. Now and in 2041. "Thinking critically, being creative, doing business, communicating, working together," says Aslander. "Only then are you the solution to someone's problem. That's when you score in the elevator pitch, the boardroom, at a birthday party."

Regular jobs

Great for people with high-quality work at the top, but what will automation do to regular jobs in 2041? In 1867, Karl Marx predicted that the importance of the factor of low-grade work would continue to diminish. Shortly afterwards, engineer Frederick Taylor divided the work at Henry Ford's automotive plant into separate, endlessly repetitive tasks on the assembly line. And while in 2021, automation continues where industrialization left off, and we're still micromanaged by technology in call centers or as a food delivery service, one in four people experience their job as useless and meaningless. 21 percent of all work is performed by machines. By 2025, this will have risen to over fifty percent. Was Taylor trying to turn us into robots? Now we fear that robots will take jobs.

What is work, really? "Work," said the philosopher Voltaire, "saves a man from the three great evils: boredom, sin, and desire." For a long time, we saw work as a Christian duty: we earned our living by the sweat of our brow. Now, we see work more as a duty to ourselves - we want to develop. We get meaning from efforts, enjoy getting a job done. What will be left of that by the robots in 2041? Will the little work there is be something 'for on the side'? Will we be dutifully earning our money to waste our time in philosophizing and the arts, as the ancient Greeks did?

Cleaning sewers

"Task by task, our jobs are automated out of our existence," Thomas Frey acknowledges. "So will we still have our jobs later? Of course! Just not that job. Contrary to what we fear or fantasize, an era of super-employment awaits us." And not only that: Frey thinks that robots will make our work more fun. "They take over mundane jobs such as cleaning sewers or scrubbing toilets, but in most other jobs, we work with them as equals. My reason for believing that? An unimaginable amount of innovative technology awaits us. Hundreds of thousands of micro-industries have emerged, with work for hundreds of millions of people who are going to reshape life."

Moreover, in 2041, we see a revaluation of old professions, Frey believes. "The teacher, the coach, the journalist: these are the vital professions of tomorrow. When all the answers are available in the information society, asking questions becomes essential. More than ever, it's about trying things out, messing around, failing, reflecting and continuing to practice. Things that a robot can't do very well, but we can. In which professions does that happen? In journalism, we're still working as a raging reporter or as a brilliant news analyst, in addition to the robot fact-checker. But there are also data detectives and data ethicists. Robot personality trainers and drone traffic controllers. AI accountants, 3D homebuilders, cryptocurrency regulators, sensor troubleshooters, aerospace impact controllers, asteroid miners, gene therapists, mixed reality coaches, cultured meat designers. And yes, there will also be a lot of work for interior designers - for our mobile work camper."

How do you survive as a pension administrator of eight funds in a year overshadowed by Covid-19? Annette Mosman, our recently appointed CEO, believes it was the ultimate test case and that APG really held its own through it. “In 2020, employees started working from home overnight, we kept the pension administration of 4.7 million participants running from three thousand home offices, and we didn’t panic when the stock market fell hard. We turned out to be a robust, agile organization.”

A new CEO, a new sound? What will we notice about Annette Mosman’s approach?

“I’m starting this job with a clear premise. I am from within the organization, and I know the sector. As CEO, I am going to do things my own way: often by listening first and reacting later. I am always curious about other people’s visions. Accents will shift, but the route is rock-solid. First of all, we are going to perform really well. The coming years will be geared towards the end result: implementation of the new pension contract (NPC), in collaboration with our funds, in 2026 and being a strong social player at the same time. Because we are doing this for the financial fitness of 4.7 million people. To reach that goal, we will have to be consistent in the next few years: eyes on the ball and do what we have agreed on. We have to do it right: with our attention on our funds, employers and their participants, on each other and on our environment. We are in this for the long haul and the trajectory will have its ups and downs.”

What will be the highest priority for you in the next while?

“Our established strategy for the coming years. Our focus is now on its execution: introduction and implementation of the NPC is our first priority; everything comes after that. We will be making clear choices and carrying them out superbly. We will be doing that with a strong social profile: we are inextricably linked to the 4.7 participants of our funds, with employers and with other partners in society. If we do our job well, we will be a thought leader as a pension administrator and a key player in the sector.”

This is the first annual report where you are the CEO. Transparency plays a central role in the report. Why was that decided?

“For the second time in a row, we are publishing an integrated report. In it we show what value we add to our stakeholders: our clients, society, shareholders and the funds. We are aware of our role and are taking a critical look at it. This is the main theme of this annual report. We are not an ordinary company. We work for 8 funds and 4.7 million participants and manage almost 600 billion Euros. In addition to being a learning organization, APG also focuses on the social impact we have. Being transparent, like we are in this annual report, means that we are also showing our vulnerability and therefore also showing what did not go right. If something is wrong with out execution, or the collaboration with the Works Council is not running smoothly, we will communicate about this.”

The road to the NPC is long and complex. What exactly does that road look like now?

“We don’t want to be faced with any unpleasant surprises when we start the transition to the new pension system with our funds. That is a crucial component of our strategy and that is what our clients expect from us. It is also a precondition for transitioning to the new pension system. Compare it to an attic you need to clean out before you move. In our case, for example, that means working with our funds to tackle the complexity in the current plans. But it also means going through the pension administration and fixing it if something is unexpectedly wrong somewhere. Fixing this is complicated, especially when it has an impact on people’s wallets. In collaboration with the funds, we are trying to find solutions that are in the best interest of the participant.”

What does that mean for APG in concrete terms?

The transition to the new pension contract will affect the work of almost all employees within APG in the coming years: from IT, pension administration, asset management, risk management, client contact and communication to HR. It will change our work in almost every respect. This will demand a lot from us as an organization and from our employees in the coming years. At the same time, it offers APG the opportunity to show that even in a new system we can live up to our position as a leading administrator. Because we are a leader in our field for good reasons. With our digitalization, participant orientation and pension expertise, we have all the ingredients needed to create a new proposition and to measure up to other financial parties. We also have eight loyal clients who are going to go through this process with us. So, let’s not stare into the headlights, but get on with implementing.”

In the past year, things went wrong in the execution a few times. How do you look back on that?

"That’s true. In August 2020, for example, an action surrounding the disability pension was completed. In the process, a total of 8,352 participants were retroactively awarded the pensions they were entitled to. Some 8,500 participants also received a rightful supplement for coinciding periods of service. For the participants in question, this made a big impact. And as a pension administrator, we understand this very well.  That is why we are doing everything we can to carefully inform participants and assist them in these kinds of situations. And we also learn from them. Over the past year, despite the Covid-19 pandemic, which forced us all to start working from home, we have improved our processes enormously and where there were problems for participants, we have solved these as quickly as possible.”

Is the chance of errors really going to be less now?

The store is being renovated while sales continue. It seems like Covid-19 barely affected APG.

“The switch from office organization to home-based organization went smoothly. Operations - including paying pensions, collecting premiums, investing - were not compromised at any time. Pension fund clients, employers and participants hardly noticed that we supported or spoke to them from home instead of our offices. And in many cases, we are still doing that. I am very proud of that.

There is a lot of talk about APG’s role as a social player. How is APG going to fulfill that role in the next period?

“APG is a company, but it is really much more than that: as the biggest administrator, we play a certain role, but we never do this alone. If we do our job well in the coming years, other parties, such as funds, will want to collaborate with us and join forces with us. At the same time, I want to look beyond that: because with our knowledge and skills, we could mean a lot more for people and for society. Financial security affects your health, your wellbeing and your opportunities. Your pension is not a stand-alone thing. That is why I want to seek more connection with social partners, for example, around themes like health, financial education and poverty reduction. APG employees can actively contribute to that. Taking care of our environment means also taking care of the planet. We are investing with a view of the long term and in as sustainable a way as possible. Our operations will be climate-neutral by 2030. That is why we are moving to a new, sustainable building at the end of the year. And we are working on a new mobility plan for all APG employees. We will be looking without any dogma at what is good for us and for our environment.”

Finally: what are you looking forward to most in 2021?

“Seeing coworkers again and being able to go back to the office. But I'm also looking forward to the steps we're going to take towards the new pension contract. That is really a very complex process. So, I hope that the politicians in The Hague will stick to the established timeline. I am still assuming that on January 1, 2026, all funds will have to make the transition, and we really need that time.”

View the Annual Report 2020 here. 

Read the interview with Ronald Wuijster, board member and person responsible for Asset Management and HR: “Selling from a sense of panic is never a good idea” - Ronald Wuijster on investing during a Covid year. 

Today, APG publishes its annual report for the year 2020. For APG, pensions are about people, life and living together. We want to make a difference and ensure a good income, now and later. Our 2020 annual report describes how we have worked on this in the past year; for eight pension funds, 22,000 employers and through them, for 4.7 million people in the Netherlands.

Key points for 2020:

• Despite the COVID-19 pandemic, the operation, including paying out pensions, collecting contributions and investing, was never jeopardized.
• Customer satisfaction has grown again
• We have given more people insight into their income for later and their pension assets
• We have outperformed the market index, and the price per participant has again fallen. As such, we contributed to achieving more pension value for the members of the pension funds we work for
• In 2020, together with the pension funds we work for, we started preparations for the transition to tomorrow's pension. Among other things, we have made progress in the fields of automation, innovation, streamlining of processes, simplifying and cleaning up the pension administration and further increasing the participant focus.

APG achieved a 6.6% return and an additional return of 94 basis points for its pension funds and their participants in 2020. At the same time, APG succeeded in lowering the average price per participant to € 66.30. Also, APG provided 1,015,000 participants with insight into pension assets and 1,965,000 participants with insight into income for later. APG's turnover in 2020 was more than € 762 million. The net result came to € 42 million. APG's reputation score rose to 72.6 in 2020.

View the full APG 2020 Annual Report here as pdf or visit our special website. 

Tomorrow, at apg.nl you can read the interview with Annette Mosman (chairman of the APG Board of Directors) and Ronald Wuijster (member of the APG Board of Directors, responsible for Asset Management) about the annual report. 

How do you deal with work and money for now and in the future? Do you live from day to day or are you deliberately planning your financial future? And do you arrange ‘later’ yourself or are you a member of a pension fund?

Brenda Elgersma wants to stop working at the age of sixty.

Brenda Elgersma (49)

Profession: Operational expert at the police, municipal councilor and marriage officiant.

Weekly works: More than fulltime

Income: Between 3000 and 3200 euro net in paid employment and a fee of 750 euro net as municipal councilor.

Savings: 20,000 euro

Pension is arranged? Yes

What kind of work do you do exactly?

“I work at the police as a manager of the Regional Service Center since 2019, the control room of the Amsterdam police where all ‘not urgent, but police assistance required’ reports are processed. I have been working at the police for 22 years already and previously carried out my policing duties on the streets as a regular police officer. In addition, I started working as a municipal councilor seven years ago for a local political party in Uithoorn. This is my final year in that role though as I will call it quits. Being a municipal councilor takes up a lot of time which is at the expense of the time I am able to spend on my passion: marrying people. I became a marriage officiant three years ago and that to me truly is the thing I like to do most.”

It sounds as if your weeks consist of more than seven days…

“People sometimes ask me how I make the time to do all of this. I don’t sleep in and barely watch TV which means there’s plenty of time left. I work 36 hours per week at the police and that’s a fulltime position in this profession. I spend approximately one day a week on my work as a municipal councilor reading documents, work visits, meetings with the political group, committee meetings and council meetings. My work as a marriage officiant has come to a standstill for now, due to the corona pandemic. I usually spend between 10 and 15 hours on a marriage and I sometimes conduct no less than three marriages in one week, which is also my limit.”

How much do you earn?

“People don’t get rich working at the police. In the years working as a patrol officer I sometimes thought: Is this why I work all of those shifts in the weekends and nights? But now, being a manager, is the first time I am actually quite happy with my salary. I earn between 3000 and 3200 euro net. I also earn a fee working as a municipal councilor of 750 net per month, but the tax authorities consider that amount income so that only leaves me 600 euro. And money is definitely not a reason to become a marriage officiant either. I earn 90 euro gross for every marriage I conduct on behalf of the municipality. That leaves me with 60 euro net for each marriage following the deduction of taxes. It really doesn’t involve a lot of money. When people hire me outside of the municipality, I can charge more. I charge 250 euro, excluding travel expenses, for those marriages of which I donate 100 euro to the Diabetes Fund - my son suffers from diabetes type 1. It is not about the money, I just really enjoy doing it. If people can’t afford me, that’s fine by me as well. In that case I am happy with a slice of the wedding cake.”

Is it enough to make ends meet?

“Yes, it is. I am married to Peter who has been working at the police for all of this life and who is about to retire at the end of next year. Peter is 62 years old and only works 24 hours a week these days. His net income is 2800 euro. We spend about 4000 euro a month on fixed costs and groceries. So, you can do the math. We save quite a lot of money these days. We had to cancel our trip to the United States and we can’t go out for dinner. That’s why we moved the renovation of the bathroom forward.”

What else do you spend much money on?

“I visit the nail studio every three weeks, the beautician every six weeks and the hairdresser every eight weeks. Those are the luxury things I allow myself. I also buy a new car every three years. I am driving a Hyundai i30 fastback at the moment. The most expensive version, truly a beautiful car. I really enjoy all of that but I never forget where I came from. When my daughters and I were on our own for a few years after my divorce over twenty years ago, I really had to think about every dime I spent. I drove an old Atos back then and that too made me extremely happy.”

How much did you save?

“20,000 euro. We don’t want to save any more as the interest rate on savings is close to nothing. When we have money left, we rather spend it on additional mortgage payments or use it to maintain our house. We don’t spend our savings. Last year, the heat pump in our house broke down and had to be replaced at the amount of 10,000 euro. We took out a personal loan to pay that bill and we paid off the loan early. Why don’t we just use our savings for that type of costs? Well, it just feels right to have some money to fall back on in case something happens. You never know what the future holds.”

Do you invest?

“No, we don’t feel the urge. To us, that feels a bit like gambling away our money.”

What is your pension plan?

“I want to stop working at the age of 60. We are able to save hours at the police which can be used after saving an entire year worth of time. I want to have that year started at the age of 60 and then move my pension forward to the age of 61.”

What do you arrange to accomplish that goal?

“We take a look at our finances every year in December and make a plan based on those findings. Are we still able to succeed in what we want or do we have to start doing something else? Are we looking to have things done on the house or do we want to make additional payments to pay off our mortgage?”

How much would you like to receive per month following your retirement?

“I think about 3000 to 3500 euro would be enough to live our lives the way we want.”

And how much do you receive should you retire now?

“We both have a good pension at ABP. If I stop working at the age of 61, I receive approximately 1400 euro but that is enough. Our joined income would in that case be about 4000 euro per month.”

What are your dreams for the future?

“Once Peter is retired, we want to make a tour in Spain of five weeks. We also fantasize about renting a house in Spain for a major part of the year or even buy a house there. We want to explore a lot, go on great trips. The twenty years of us being together were mainly dominated by developing a career and raising children. We are now at the beginning of another stage in our lives. We really enjoy fantasizing about the future, but there’s always a risk of thinking about the future so much that you forget to live in the now. You know what it’s like? If your career has led a few times to having to tell people that their son, daughter, father or mother is not coming home, you don’t easily take things for granted anymore. Of course you can make plans for the future but as soon as I walk out the door, there’s no certainty I will also return. That’s the reason for us to try and enjoy every day of our lives.”

What else could you still improve in terms of pension?

“The great thing about working in the public sector, is the fact that pension has been arranged properly. That means there’s not a lot for us to improve ourselves. However, I would like to make my children - two daughters at the age of 27 and 26 from my first marriage and a son at the age of 15 with Peter – more aware about the importance of a good pension. When I was their age, I also didn’t think about pension that often but accruing pension through your employer is not as obvious anymore for their generation as it was for ours. I try to provide them with as much as possible healthy financial knowledge.”

In a time of increasing global protests and with the Dutch elections just around the corner, I like to look at the ‘alliance’ between the free market and the democratic rule of law.

The economists Acemoglu and Robinson discuss the economic and political institutions in their book Why Nations Fail. Those institutions can be inclusive - everyone is allowed to participate - or exploitative. In the latter case, an elite group is draining the rest in terms of prosperity or control. One of their thoughts is that economic freedom and political freedom mutually reinforce one another. My question: is it still a happy marriage?

Why would political and economic freedom actually go hand in hand? A part of the story is (in)equality. In a rather unequal society, rulers have to implement weightier resources in order to defend their property. Economic freedom is threatening, as it also entails more competition. And before you know it, political freedom leads to reallocation. If a country (nevertheless) develops, a middle class arises that wants participation and tries to enforce certain rights. Their success, if achieved, is also beneficial to the economy. Entrepreneurs in a democratic rule of law, have to be less concerned about someone else benefitting from their investments.

And that's how we continued to have a clear world until the end of the Cold War. You either lived in a democratic nation with a free market - and at the same time a wealthy country - or you were restricted in both your economic and political opportunities and you would be poor.

The major deviation from this delightfully clear picture is China. We all know that the economic rise is unprecedented. But political freedom is not particularly part of the success formula. The Dutch republic showed success in the seventeenth century - much to the dismay of surrounding monarchies - thanks to the combination of economic and political freedoms. In turn, the Chinese show the world that a lack of freedom doesn't have to stand in the way of wealth. That's an example of which you hope it will not be replicated on a large scale.

Yet, the question is whether or not the success has a continuing status. Migration from rural areas to the city - an important growth engine - will come to a standstill someday. And there's also another reason to doubt the durability of the Chinese model. Acemoglu and Robinson state that the combination of authoritarian leadership and economic freedom is far from stable. It can go two ways. It is possible that increasing prosperity leads to increasing participation. That means it will become a free market democracy. But it is also possible to slip into unfreedom on both fronts.

Even the stable alliance between democracy and the free market can be undermined. Growing inequality can feed social dissatisfaction. And the free market can generate a lot of fake news. That has been an important factor for the storming of the Capitol on January 6^th. There is no economic law determining that the most objective communication sells best.

We can therefore not just expect that everything will turn out for the best once you have economic and political freedom. That's a good thing to remember in this period of election. The election programs - but also society - pay much more attention to inequality these days. That also helps in keeping the free market and the democracy together. You ask me if I have an appropriate voting recommendation when election day has arrived? Absolutely. Make sure to vote!

Charles Kalshoven is senior strategist at APG

What will 2021 bring in economic and political terms? What will happen with the new pension contract? And with which innovations does APG respond to this? Five APG specialists tell us about their anticipations.

"I assume the economy will do better in 2021 than it did in 2020. But I do keep my options open. How often will the lockdown be extended? What is the impact of the coronavirus mutants? How smoothly does the vaccination process go? There's still a lot of uncertainty. If everything goes well and we get the virus under control quickly, there's a bigger chance that governments will phase out the support measures and companies will still have to pay tax. Which in turn can lead to a wave of bankruptcies and rising unemployment.

Sentiment in the stock markets is still surprisingly good, helped by the low interest rates and the intervention of governments and central banks. Even though entire sectors were paralyzed by the lockdowns. But those stock prices don't tell the whole story. Don't forget, SMEs and freelancers aren't listed.

It's not just the stock prices that can go either way, the same goes for consumer spending. On the one hand, many permanent employees have been able to spend little money since corona; perhaps they'll start spending a lot again as soon as the shops and the catering industry reopen. But then again, that catch-up demand will be limited: you don't suddenly go to the hairdresser three times in a row. Or eat out every day. On the other hand, some people are financially stuck or keep a tight hand on the purse strings because of all the uncertainty.

Hopefully, once most people are vaccinated, consumers and businesses alike will start spending more on major purchases or investments over the course of this year. Then the global economy will gather steam again. And we may even get to a point where inflation temporarily rises due to bottlenecks. But interest rate hikes by central banks are really still a thing of the future. On the positive side, gone are drawn-out problems like Brexit, and the question of who will be the next US president. I expect a positive stimulus for global climate policy from Biden."  

"There is quite broad political support for the Pension Agreement. In addition to the coalition parties, Groen Links, PvdA and SGP were also in favor. So whatever the composition of the new government, that new pension system will most likely come. Despite the fact that political parties - now that the Rutte III government is outgoing - are no longer bound by the coalition agreement.

Several important milestones towards the new Pension System are planned for this year. For example, anyone can now respond online to the "future pensions bill". This consultation round will run until February 12th. This bill is part of the broader Pension Agreement. It includes the new rules for the pension accrued by the employee and employer. The responses from this Internet consultation will be used to improve the bill so that the law can take effect in 2022, as soon as the House of Representatives and the Senate have approved. After that, the social partners and pension providers have until 2026 to switch to the new system.

The pension sector hopes to receive details about the new pension system and how to get there as soon as possible. At APG, we will of course see whether the system can be explained and implemented. We also look at possible implementation risks and the best way to deal with them. In the new system, the pension will be more directly in line with what is happening on the financial markets. This year, we'll be investigating what people think of this, and "how high versus how stable" they want their pension to be. We want to facilitate pension funds to meet the wishes of pensioners and employees as closely as possible. That's why we'll be discussing this with them this year. I think the great thing is that the new system is becoming simpler and easier to explain.

With the arrival of the new pension system, a lot will change for employees and pensioners. They will have their own pension account into which the pension premium will be paid. You save for yourself, see the fluctuations in your own pension fund. A complicated change. We have to divide the total assets of over 1500 billion euros fairly over millions of personal pension assets. The new pension scheme will be less complex and easier to understand, but getting there still throws up many obstacles. Things like adjusting ICT systems, legal issues, you name it. Fortunately, we still have a few years.

All pension players have to deal with this. That's why APG is increasingly collaborating with pension funds and other pension providers, such as PGGM and MN Services. Not only to collect premiums together and to pay out pensions, but also to learn from each other and save costs. And to find out how we can best communicate with our participants about the coming changes.

In the coming years, people will have plenty of questions about their financial future. They are increasingly in need of a guide to help them with user-friendly solutions and tailor-made advice. Who gives them control over all their financial affairs and prepares workers well for the transition to retirement, for example.

To be able to work in a more customer-oriented way, we want to collaborate more in the coming years with specialized companies with whom we can develop apps, devise new ICT solutions or use data more intelligently, for example. Such as a digital planner that gives you an instant overview of your financial future. Together with other companies, from startups to Nibud, we want to ensure that, as a working or retired person, you can use all kinds of data to see, for example, how much money you will need later on for any desired standard of living. Reasoning from your current lifestyle. We know from research that employees often overestimate how much money they really need later on.

Innovation specialists Tom Romanowski and Anne-Marie le Doux about innovations and APG's innovation lab.

Tom Romanowski: "Under the new pension contract, every participant will soon have their own, personal pension. This is in line with the social trend towards more individualization. The sector is facing the necessary challenges.

Pension administrators such as APG are now working on all kinds of innovations. And technology continues to increase the possibilities. For example, thanks to cloud technology, we can get the most out of our data in a secure way, without this being at the expense of the privacy of participants. For instance, machine learning helps call center employees so that they can better predict the participants' follow-up questions.

Participants will be given more responsibility and will need advice when making financial decisions. Partly for this reason, APG has already launched Kandoor.nl, where you can get answers on all conceivable financial questions."

Anne-Marie le Doux: "We come up with these kinds of innovative solutions in the GroeiFabriek, APG's innovation lab. In this breeding ground, we focus not only on participants and pensioners, but also on employers and the pension funds that are customers of APG. Employers, for example, they want to know how they can help their employees to be better off financially. Together with a number of employers, we've developed an online platform that enables employees to learn more about their 'financial fitness score' and help them set realistic goals to improve them. And this year, we're also working on innovations that enable employers to make better HR decisions."

Rapper Typhoon hopes every single coworker is going to be feeling responsible for diversity

Putting diversity and inclusion on the agenda is number one. Giving employees the space to co-decide on the topic is an important second step. With that message, rapper, language artist and keynote speaker Typhoon is visiting companies in the Netherlands, such as, online, APG. “Inclusion should be woven into the corporate culture.”

When you visit companies, you get a look behind the scenes. What have you been seeing?
“I’m seeing a variety of initiatives. Equal pay for men and women, applying for jobs anonymously, education and training throughout all the layers of organizations. And often a social stand is taken externally as well, by raising the rainbow flag or participating in a Gay Pride event. I see the willingness and urgency to really make this theme part of the company culture and strategy. APG can count itself among the vanguards in the movement and fighting spirit forward in this. Employees are driven and want to go deep. And that is what you want to achieve as a company. The words ‘diversity’ and ‘inclusion’ really make my skin crawl when they’re used as an end in and of themselves. When they’re on the agenda, just to be checked off. A quarterly financial report is something you can check off.”

Sounds like the working world is doing well in the Netherlands with respect to diversity and inclusion.
“Serious time and attention is being put into it, which is good to see. And, don’t forget to celebrate what’s already there, as well as the effort. Then, as a company, you don’t always have the feeling that you are lagging behind and have to catch up. Even if you are. Be brave in your discomfort. Take, for example, APG's equal pay for men and women. Even though that’s just a tip of the iceberg, it’s a good example for other companies.”

When you look at the initiative that companies are putting on their D&I agenda, is there anything missing?
“Whatever means you use as a company to stimulate inclusion, people have to feel it. The DNA of a company must be tangible in the walls and the carpet. Formulate a clear vision with diversity and inclusion as one of the pillars and build towards it, in collaboration with the employees. That’s where your success lies. My fellow speaker and corporate anthropologist Jitske Kramer puts it very aptly: ‘Inclusion is inviting someone to the party and letting them dance. But inclusion is also letting that person help decide on the playlist.” Don't impose this on employees from above; give them the space to speak up. Then everyone feels responsible and you really form a culture together.”

Is it possible to pay too much attention to the theme?
“This is about a culture change and it starts with that one thought change. For that you use words; they have power. But the fact is that everyone connects in different ways, at different times. You can hear something five times and only actually absorb it on the sixth. Because someone is using the words that mean something to you at that moment. So it’s good to keep talking to each other.”

Some issues around inclusion are very clear and visible. Like age, gender and physical disability. But there are also non-visible issues. Which ones should we be sure to discuss?

“There will always be blind spots and we need to explore them together. Systemic racism is a recent example. That term, alongside discrimination and racism, is popping up more and more in discussions. And it shows that racism is not just the personal beliefs of individuals. It is now reflected in society and organizations, creating or perpetuating unequal opportunities and outcomes for certain groups.”

Looking at diversity and inclusion, the Netherlands is improving. At the same time, the debate seems to be hardening. Are we conducting the discussion in the right way?
“The way the discussion is being conducted makes me very sad. There is no vaccine to solve this problem immediately. It takes time and change doesn’t come without a struggle. I felt really angry and distraught after George Floyd’s death, it was closer than I had thought. I hope we can continue to see that this is part of a larger movement. We need perspective, the power of imagination, to see that change for the better takes time.”

Despite that negative feeling, you are brimming with energy when you talk about the topic. Where do you get that strength from?

“From my love for humanity. I look for the good in someone, even when you talk about polarization. Hate is confused admiration, we don’t want to hate, we all struggle with our own questions and personal crises. I know this about myself too, nothing human is foreign to me. So I am one of the Rutger Bregmans of this world, I think all people are good. There’s only the occasional person that actually has bad intentions.”

When you talk about inclusion, you are talking about being equal and being of equal value. What is the difference?  
“People are not all equal, or the same. We are all different, in color and gender, but equal as human beings. That diversity is beautiful and we should embrace it. So look at my color, because I am enormously proud of it. But first of all look at me as a human being. When I was a boy in ‘t Harde and I wasn't allowed to enter that evening, people thought and saw all sorts of things, but not who I really was.”

Do you suffer from unconscious biases yourself?
“I didn’t think so, until recently. My sister, who works for me, mentioned that a party we work with did not look at her during meetings. I hadn’t noticed and I couldn’t imagine it. So I didn’t do anything about it. Later, when I saw it myself, I was shocked. I felt guilty for not standing up for her. I could only say “I didn't see it”, just like Johan Derksen did when it was about gay violence, and it’s just not okay. But this was my blind spot. I have now resolved to take every signal seriously, any time someone comes to me to report something. Even if I don’t see it right away myself.”

You want to be part of the movement forward with your workplace inspiration sessions. Why?

“So that we can let everyone be the best version of themselves. Don’t let prejudices outweigh someone’s character. With the best versions of each other, we can work on the best version of a company and of society. And we can do that if we see each other as equals. Celebrate the differences.”

The pension system is undergoing a major overhaul. This means that both employees and pensioners will soon be faced with a lot of questions. That is why pension funds and pension administrators like APG need to adopt a more coaching role. That is what APG CEO Gerard van Olphen said at the Pensioen Pro Annual Conference, a platform for knowledge- sharing in the pension sector.

With the arrival of the new pension system, things are going to change for employees and pensioners. Their pension contributions will still be invested, but the amount of their pension will no longer be fixed because it will fluctuate with both the pension contributions invested and the investment results achieved. And that will also become much clearer: as a member you will soon have your own pension account into which your pension premium will be paid. You will save for yourself, see the fluctuations in your own pension pot and thus become more aware of the risks.

Will I be able to maintain the same lifestyle I have now?

All these changes will undoubtedly raise questions among both employees and pensioners, Van Olphen said: “That’s why companies in the pension sector need to look very closely from the perspective of those members. Much more than they are doing now. They will need to respond to a variety of wishes and questions. For example, people expect us not only to invest their money well, but also to explain and account for it in very understandable language. And people also want to know how much net retirement income they can count on now and in the future.” Not in a complicated way: split into OAP, employer’s pension and their own income from investments, for example, but simply the total. You want to get an idea of whether you can continue to live in the same neighborhood later on, whether you’ll still be able to go on vacation with your family, like you’re doing now. Pension funds should be more aware that it’s all about people’s financial fitness. Whether they will be able to maintain the same lifestyle they have now."  

Employees’ and retirees’ right to care

These questions become even more relevant when people are confronted with moments of great joy or great sadness, e.g. moving in together, having children, divorce or the death of a loved one. Van Olphen: “That’s exactly when people are left with many questions, including about the consequences for their pension. Sometimes they can turn to their employer or trade union, but for pension companies such as APG, I believe there is also a clear task. And it’s better if we don’t wait for people to approach us with their questions; rather, we can approach them proactively if something has changed for them that affects their income or pension. Employees and pensioners are entitled to our care.” He feels that although pension funds do not have a duty of care, their members do have a “right to care”.

Better grip on money matters

Pension funds and pension administrators will have their hands full with the transition to the new pension system in the coming years. It is complicated, new regulations have to be put in place, IT systems are being overhauled, and so on. With the possible risk that this leaves too little attention for their members, Van Olphen warned. “I think pension companies like APG should strive to ensure that the new pension will soon be easy for every member to understand. Transparent, and easy to understand. That also means that we need to act more like a coach. There will be a real need for that.” This role of coach in and of itself is not new to APG: one of the pillars of APG’s strategy is to be an “experienced guide” who helps employees and pensioners with their financial future; sometimes directly, sometimes via the pension funds that are clients. Providing them with customized advice on all their financial affairs. An example of this is the APG platform Kandoor (link: www.kandoor.nl), where APG answers more than fifty thousand financial questions a month. Not only about pensions, but also about matters such as rent allowance, severance plans, taxes, OAP, debt assistance, etc.

Still on the right track financially?

Van Olphen emphasizes that the role of coach he is envisioning is different from that of financial advisor: “We already have enough financial institutions that you can turn to for advice and various financial products. We should not aspire to that role. But we can help participants if they are unsure about something, if they want a quick check to see whether something is right or wrong. Whether or not they are still on track financially.” He thinks it’s right that people make high demands on their pension fund: “As a pension sector, we may think that we have the best pension system in the world in the Netherlands, but that’s really not how employees and pensioners see it. They are now being given a new pension system in which they are given more responsibility and run more risk. Not everyone is excited about that. People want to understand what will happen to their pension, they want to feel safe with their fund. It’s up to us to appropriately respond to that with integrity, regarding the new pension contract.”

BpfBOUW has won the silver Pension Pro Award for Best large pension fund. BPF Schoonmaak won the Pension Pro Award Diversity & Inclusion.

BpfBOUW won this high award in the pension sector because it was the only one of the major pension funds to be able to increase their pensions in 2020 - for the third time in a row. The professional jury praised BpfBOUW for its good strategy in difficult times - "the highest funding ratio of the large funds, a real long-term investor". Furthermore, the jury report praised the great attention to sustainability and “the eye for human capital of the participants”.

Award for BPF Schoonmaak

BPF Schoonmaak received the prize for Diversity and Inclusion for its courage to raise the importance of diversity and ethnicity. The pension fund says about this on its own website: "Wherever you come from and whether you are male or female, old or young: everyone deserves a place". BPF Schoonmaak not only propagates this conviction: they also show it convincingly in the composition of their board.
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Best Communication Initiative

Finally, the Pension Checker emerged as the best communication initiative. The Pension Checker is a mobile app that allows participants to quickly find out how much net pension they can expect. The tool is the product of a collaboration between different pension funds, led by the Pension Federation. The ABP / APG Experiments Team developed the prototype. The jury praised the fact that several parties from the pension sector have worked on this. The Pension Checker previously also won the Pensioen Wegwijzer Award 2020.

The prizes were awarded online to the winners on Thursday evening, December 10, after the Pension Pro Annual Congress. Readers and listeners of Pension Pro, the Financieele Dagblad and radio station BNR could vote for the public award.

Why so many soccer pros go broke at the end of their career

Top soccer players earn millions, but the money often drains out in no time. They live in a make-believe world with private jets, designer clothes and extravagant indulgences. When their career is over, more than 60 percent of the European soccer players go bankrupt.

Soufyan Daafi created the company Sport Legacy and Kenneth Vermeer became their ambassador. Their goal: to create awareness. “They think about their financial future much too late.”

Luxury vacations on tropical beaches. The most expensive cars. VIP tickets to the most eccentric parties. Extravagant watches and a harem of “gold diggers”. If you follow the top soccer players on Instagram you will see a world of unlimited extravagant indulgences. A world where money is spent by the ton. But the reality behind it is really tough. The road from millionaire status to bankruptcy is shorter than the fans realize.

Help where possible

Former international player Kenneth Vermeer, also former goalie of Ajax and Feyenoord, plays in sunny California these days, for Los Angeles FC. He is concerned about former soccer stars who fall into a miles-deep, black hole at the end of their careers. His former teammate and friend from his younger days at Ajax, Soufyan Daafi, started the company Sport Legacy and Kenneth Vermeer joined him as an ambassador for the company. Sport Legacy’s vision is to help where possible in a bizarre soccer world where nothing is what it seems.

Soufyan Daafi: “Not everyone gets to have a career with an income of millions. I saw it all around me. One of my best friends, Kenneth Vermeer, was a champion with Ajax for three years. At one point he was benched, and it was not certain if his contract would be renewed. There was no interest from foreign clubs. That was when I realized how big the risks are when that soccer income disappears. Kenneth was fortunate and got signed on with Feyenoord.”

In a world where a 17-year old youth can become a millionaire in one day, you might wonder what big clubs like Ajax and PSV are doing to keep their talents on tracks

“The club always recommends for everyone to speak to a financial advisor. Sportdesk ABN Amro, for example is active with Ajax. For AZ it is the Rabobank. But that help only goes so far. When serious financial problems occur, all the parties end up point the finger at each other. The club will say: ‘That’s what the agents are for.’ The agent will say: ‘We assist the player, but he is responsible for himself.’ And the player looks at both parties: ‘I need your support.’ And that is what we want to do now, with Sport Legacy. Making players aware that they should not fall into all kinds of financial traps but should ask for help before any of that happens.”

“We keep in touch with agents, the clubs and the players to prevent problems. 62 Percent of the players go bankrupt when their career is over. We want to drastically decrease that number. In America, those percentages are even higher; in the NFL, it is as high as 80 percent. It’s easy to explain. When you’re making millions, it feels like it will continue forever. Most soccer players have a spending pattern of between 5000 to 30,000 Euros a month, or more. When you’re used to a certain amount coming in every month and then it suddenly stops and you only have a million or two in your bank account, you’ll be bankrupt in as little as five years.”

Especially in videos and photos on Instagram, soccer stars are increasingly exposing their sometimes exotic lives. A weekend on Ibiza with the private jet, a road trip with the latest Bentley. And in between, going to the most exclusive parties, dressed in expensive designer clothes and dripping with jewelry, where the jetsetters are served the most expensive champagne.

Soufyan Daafi: “Players think it’s the norm, but it is a make-believe world. I’m currently having conversations with guys that have nearly a million followers on Instagram but are in big trouble financially or feeling depressed. I’m not saying don’t use Instagram, but what do you use it for? As a platform for your own branding, which is fine, or to show off your life of luxury to the world?”

Do players around age thirty think about their financial future?

Soufyan Daafi: “Yes, they do, but often much too late, unfortunately. They accrue a CFK pension fund. The purpose of this is to offer a player/runner a financial base after his professional sports career, so that he can focus (better) on his new career. We are also talking to those players. The CFK sees soccer players as a nice asset, but also a liability, because they can’t touch their money. I talk to soccer players whose careers are already over and have made arrangements with the CFK to get paid in the coming twenty or thirty years, but they’re thinking, ‘I need it now’. For example, to develop a real estate portfolio. The CFK program doesn’t allow for that.”

Sharing knowledge

But there are positive examples too. For instance, international player Ryan Babel. The former Ajax player decided to delve into money matters and he ended up becoming a real estate entrepreneur. He has been thinking about his soccer retirement for years. “I want to at least maintain my current lifestyle. I don’t want that to decline,” Babel says. He is buying houses and apartments all over the world. At the recommendation of his agent, he purchased a new apartment every quarter. Babel is now working closely with Sport Legacy.

Soufyan Daafi: “Wat Ryan is doing right is that he realized early on: ‘I want to keep my current lifestyle. I want my kids to keep going to private schools, I want to have nice vacations, I want to be able to keep visiting those beautiful places I go to now.’ He realized he would need a big income for that. And that in the Netherlands there is virtually no job that will pay as much as his soccer salary. So, he figured out what his options were. He went into real estate with this goal: After my soccer career is over, I still want exactly the same monthly income I have now. I admire Ryan, because he also wants to share what he has been learning with the younger players. He tells them: ’When you get your first contract, don’t buy a Bentley; do something useful with the money.’ I’m learning a lot from him.”

Kenneth Vermeer and Soufyan Daafi 

Are these problems common in the Netherlands?

“It’s not substantiated with numbers, but I have a sense that it is. When you look at how many talents there are in the Netherlands. Even just looking at the Dutch team, all those debutants. I know players who played for top clubs in the Netherlands, Spain, England and Italy, and they are currently facing serious financial challenges.”

What exactly can you do for these players?

“As Sport Legacy, we approach players with simple presentations. At the kindergarten level. ‘Peter, you’re signing your first contract. What kind of car do you want to drive?’ They often pick a car that’s worth a ton (100,000). Then we ask: ‘Are you going to pay for that car out of your signing fee, with your savings or with your salary?’ And then we want them to see that if they bought an apartment for two tons and rented it out, that renter will be paying for their car. The difference is that the ton spent on that apartment will be appreciating in value, whereas the ton spent on the car is always depreciating. That is the kind of awareness we want to create. And as soon as we do, the player realizes: that is true; it can be done differently. I can get that luxury item without spending my own money.

We are also quite confrontational. ‘If your salary were to stop today, what are your expenses? How much income do you generate right now, besides your career?’ And then we calculate how long it would take for that player to be bankrupt. I know a player in Feyenoord who doesn’t have to worry. If his salary stopped today, he’d be doing fine, financially, for another 86 years. But I also have players that are finished after three years and then we look at: ‘What other passion do you have besides soccer?’ Then you get to hear all kinds of interesting ideas. Opening a ski school or a personal gym. Together with those players we then look at how we can get that set up.”

What are you most proud of so far?

“That we have been able to get the attention of the soccer world in a relatively short time. I can’t say our name is fully established yet, but our presence is increasingly being embraced.”

The Dutch pension system is again rated the best this year in the Mercer Index. Why is that and how is pension arranged in other countries? We asked two experts.

We like to complain about it, but with relatively little reason: the Dutch pension system is the best in the world. In the Mercer Global Pension Index, that compares all pension systems in the world on several crucial points, ‘we’ are rated at the top position, just like last year. “No other country scores this good on all of those points as we do”, says Rob Bauer, professor Institutional Investors at the University of Maastricht. The index assesses the adequacy, durability and integrity of a pension scheme. Are the payouts sufficient for the participants? Is it affordable in the long term? And how honest and transparent is the system?

The Netherlands scores quite alright on all of these three points, also says Onno Steenbeek who is responsible for strategic portfolio advice at APG and works as a professor in risk management of pension funds at the Erasmus University. “The entire world is jealous of the Netherlands”, he says. “What makes us unique within Europe is the fact that we have saved a lot of money labelled pension.”

America

That’s something the people in a country such as the United States can only dream about. With a ranking at the 16^th position on the international list, the US is not scoring very well. The paternalistic model of the Netherlands, in which it is mandatory for us all to save for our pension once we are employed somewhere, is just unthinkable in the US, says Bauer. Annuity, having your pension paid periodically, is in many cases a choice over there instead of an obligation, like it is in the Netherlands. That is to say, if you receive pension at all. “There has been an enormous trend in the US from collective to individual systems, or even no pension system at all. The public pension funds that still exist, are of states and cities. Some cities have already gone bankrupt.”

One of the related causes is the weak legislation, says Bauer. “There are guidelines in place, but the funds have a lot more freedom to do whatever they want. That’s a big problem. They are allowed to take too much risk which means they can achieve high yields, but also suffer major losses.”

Moreover, the funds in the US work with a much more optimistic calculation of the coverage ratio, but even with that calculation method it is way worse than in the Netherlands. Bauer: “The largest pension fund of America has a coverage ratio of approximately 70 percent. But if they would calculate the coverage ratio according to the Dutch legislation, it would only be 30 percent.”

Bauer believes that Americans find us too strict in the Netherlands. “You could say that we act as if the world is ending, while they act as if nothing is going on.”

UK and Denmark

The United Kingdom, ranked at the 14^th position, is not performing much better than the US. The UK has also made a move from collective to individual, says Bauer. About five years ago, pensioners there were given the freedom to withdraw their pension after the age of 55 in one go, instead of having it paid every month for the rest of their lives. Bauer is horrified by this ‘Lamborghini pension’. “We have arranged that a lot better with our mandatory annuity. It is the smartest choice economically speaking.”

In terms of the system, the English scheme is closest to the one in the Netherlands, according to Steenbeek. People save money through their employer and the employer also contributes. “However, a large part of the population is not covered by a pension scheme.” Where 90 percent of the employed people in the Netherlands is affiliated to a pension fund, that percentage in the UK, but also in countries such as the US and Canada, is only about 40 percent. Another fact is that the English only put 8 percent of their income aside (the employer pays half), while that’s approximately 20 percent in the Netherlands.

Denmark has a high score internationally speaking, with a second position on the ranking. They mainly owe that position, according to Steenbeek, to the fact that they have a state pension in place, the same as our AOW, a well-organized and financed collective basic pension for every resident. Besides that, most of them have a supplementary pension, linked to income and assets.”

Reforms

There are many countries that could use a thorough reform of the pension system, but it’s political suicide to bring that up, says Steenbeek. “That’s happening in France, for instance. They are doing really well over there at the moment in terms of adequacy. The pension is generous, but not durable. This system is based almost entirely on turnaround and due to the increasing ageing, less and less employed people are paying for more and more pensioners. But as soon as you start fiddling with the system and suggest that people have to retire later because it is no longer affordable, people are hitting the streets and the entire country comes to a standstill. Implementing such reform is actually only successful in times of a crisis.”

Bauer is ‘cautiously positive’ about our new pension agreement. He doesn’t expect it to jeopardize our number 1 position, but he has still to see how it will look like in practice. “The generation discussion has not ended yet with the new agreement. And will we now all of a sudden abide by all the rules we came up with to reduce the pensions if needed? If everyone – including politics – sticks to the agreements made, it is a progression.

Steenbeek also doesn’t anticipate that the new system causes us to lose points. “The problems we see in the Netherlands, are also observed in other countries. Ageing is a problem almost everywhere, as is the low interest rate. The pension paid to the current pensioners, is probably less feasible for future generations. It is no longer as evident as it used to be, but we will continue to score well on durability. The adequacy may lapse a little, but we are in quite a generous position compared to many other countries. And we will score better on clarity because the new system is much more transparent.”

The fact that we score so well right now, doesn’t mean we can rest on our laurels, Steenbeek emphasizes. “The system, in the way we came up with it, is actually not resistant to the world of today, with low interest rates, lower expected returns, an increasing amount of people who are not accruing any pension at all, and a business community unwilling or unable to pay very high premiums. We are unable to live up to the generous promises we made. We have saved an enormous amount of money, but something has to happen in order for us to continue our ranking in first position.”

How are other European countries doing?

We’ve already mentioned Denmark, France and the United Kingdom. But how is pension arranged in other European countries? The website consultancy.nl clearly maps this out.

• Germany - # 11 on the Global Pension Index

They also have three pillars beyond our eastern border. Although the first pillar - compulsory for all workers - makes up about 80 percent of all pensions in the country. Germany has been working with a points system since 2002. Every worked year earns points, which are eventually converted into pension. The more points you earn, the higher the payout. Legal retirement age? 67 years.

• Belgium - # 16 on the Global Pension Index

Just like us, our Belgian neighbors have three pension pillars: a "retirement pension" for everyone who works, an "extra-legal" pension that you collectively build up with your employer and a private savings plan. At the time of publication of the article on consultancy.nl (2017), that retirement pension amounted to an average of about 60 percent of the average earned wages and is based on pay-as-you-go: contribution payers therefore directly finance the pension benefits of pensioners. The legal retirement age is now 65 years, but will rise to 67 by 2030.

• Spain - # 22 on the Global Pension Index

Main pension scheme in Spain is a compulsory government pension. It is striking that low and middle incomes receive a fairly high percentage of their earned wages as pension: no less than 90 percent in 2017. Here, too, the pay-as-you-go principle applies: workers use their contributions to finance the pension of the elderly. Legal retirement age in Spain is 65 years, but will rise to 67 by 2031.

Four major pension providers, APG, Blue Sky Group, Nationale-Nederlanden and PGGM, are today launching Mijnwaardeoverdracht.nl. The new website is the result of a unique collaboration between platform developer Hyfen and the implementers. The joint initiative optimizes value transfers using innovative decentralized technology. Already about fifty percent of the participants can use the platform. In the near future, more pension providers will join the platform, which will further increase its reach.

A value transfer is the transfer of an accrued pension pot from a previous job to the pension pot of a new job. Until now, arranging a value transfer has been complicated and time consuming. With Mijnwaardeoverdracht.nl, this will change. The site connects the administrations of parties in the pension sector with decentralized technology. In this way, all the information is available at once to compare the various options and to transfer the pension.

The platform is one of the first blockchain-based applications available to the general public. The participating parties jointly designed the platform. Because all parties exchange the necessary information in realtime, they reduce the turnaround time of a value transfer from nine months to approximately thirty minutes. In a clear step-by-step plan, the pension saver compares the current and old pension scheme and can thus make a well-considered choice. The decentralized set-up also safeguards the privacy of users of the platform. This has been determined by independent auditors.

Hidde Terpoorten, manager of Hyfen: “We are proud that with this collaboration we are showing that you can speed up and simplify a process for the pension saver, while achieving efficiency at the back end. The success of this collaboration is inspiring: together we can do more for the pension saver.”  We are investigating where this philosophy can be put to further use. For example, one of the following developments is proof of being alive (attestation de vita), which requires pensioners abroad to make an expensive and sometimes dangerous annual trip to an embassy. A digital app then makes it possible to provide this proof once. This can then be shared with the required parties, instead of the participant going through the currently lengthy process with each party separately.

Francine van Dierendonck, member of the APG Board of Directors: “Mijnwaardeoverdracht.nl is a fine example of innovative services. Participants of already affiliated pension funds can quickly and easily arrange their value transfer using a smartphone or a tablet. I am proud that Hyfen, as a spin-off of APG, has succeeded in establishing this unique collaboration within the pension sector.”

Luuk van Tol, Manager of Pensioenservice Blue Sky Group: “It’s great that we got to participate in an award-winning project. It is a win/win situation for both us and for the participant.”

Laure van Waardenburg: IT Manager at Nationale-Nederlanden:”This initiative has enabled us to create an innovation in a unique way, with other pension providers, in which we can support participants in making the right choices for a financially secure future as easily as possible. We are proud to be the first insurer to contribute to this.”

Alexandra Philippi, Chief Operations Officer at PGGM: “PGGM wants to make it as easy as possible for the participants of our clients to arrange their pensions. Including for making the transition to another pension fund. Mijnwaardeoverdracht.nl is a very useful and innovative platform for this, which we were happy to help develop. Pensioenfonds Zorg & Welzijn is the first of our clients on the platform and we hope that other funds will follow, so that even more people can benefit from it.”

As of today, anyone can use Mijnwaardeoverdracht.nl by logging in with DigiD. Half of the participants who are accruing pensions can already find his or her pension provider on the platform. In the near future, more pension providers will join the initiative, which means that more and more participants will be able to use the platform for their value transfer. Pension provider AZL is the next pension provider to join. The platform should soon be the preferred place to handle value transfers.

Hyfen is a spin-off of APG, which was positioned independently earlier this year:

https://apg.nl/nl/publicatie/ontwikkelaar-nieuw-pensioenplatform-apg-gaat-zelfstandig-verder/

APG has invested $50 million in a sustainable bond that addresses income and social inequality in America’s Black and Hispanic communities. The proceeds of this bond - issued by Bank of America - will mainly be used to finance projects for affordable housing and socio-economic advancement.

The ‘Equality Progress Sustainability Bond’ is unique in that it explicitly targets social and economic disparities in underserved minority communities, says Joshua Linder, Credit Analyst Fixed Income at APG Asset Management. “America’s Black and Hispanic communities have been especially hard hit by the Covid-19 crisis. As a result, these disparities have widened. We find the use-of-proceeds impactful as it addresses a number of specific and clearly identified inequalities.”  

Reducing disparities

One such disparity is home ownership, which is widely considered important to social stability and the accumulation of wealth. Research indicates that only 47% of Black families and 51% of Hispanic families own their homes, compared to 76% of White families. Home buyers in these communities also tend to get less favorable mortgage provisions. The proceeds of the bond will be used, among other things, to expand mortgage lending for single or multi-family housing.

Other uses of the $2 billion proceeds include loans and investments in affordable housing, financing for medical professionals to expand medical services in areas with large Black and/or Hispanic populations, and investments in Black and Hispanic owned or operated businesses. As a sustainable bond, the investment finances a mix of social and green projects, including renewable energy and clean transportation projects.

Leading green bond investor

“This was a good investment opportunity because we find Bank of America attractive from a credit perspective and have been engaging with them for a long time on green, social and sustainable bond issuance,” says Joshua. The sustainable bond has outperformed both comparable Bank of America bonds and its peer group since it was issued.

Sustainable bonds are issued by companies and (semi-)government agencies for the funding of a mix of green and social projects. APG is one of the world’s largest investors in green, social and sustainable (mixed) bonds; at the end of 2019, we had invested € 9 billion in such bonds on behalf of our pension fund clients ABP, bpfBOUW, SPW and PPF APG. To encourage development of this market, APG has published the Guidelines for Green, Social and Sustainable Bonds, which outline our expectations for companies, institutions and governments issuing such bonds.

After two years of research and preparation, the time has come: SPW, the pension fund for housing corporations is making six hard promises to its participants and employers today. It is a significant step for the pension sector. “SPW is really going out on a limb with these pension promises,” says APG executive board member Francine van Dierendonck.

Birte van Ouwerkerk and Jim Schuyt are the driving force behind the pension promises. Birte is  responsible for the development and implementation of the pension promises as the Marketing communication strategist. Jim has been the chairman on behalf of the employers and the pension promises from day one.

Why are you making these promises to participants and employers?

Jim: “Promises are often made by commercial parties to get clients to commit to them. For example, Jumbo, where you can get your groceries for free if there are four people in line. We, as a pension fund, don’t feel that pressure. Because it is mandatory, participants can’t just switch to a different fund. That fact makes us see this as an extra responsibility. Even without being required to, participants should choose us; that is our approach. With the pension promises, we are therefore making the topic of pension and SPW’s services tangible and we are showing what the fund stands for.”

Do participants and employers really need such promises?

Birte: “Yes, we think so. These promises are based on extensive research among participants and employers. How are they seeing our services and the subject of pension in general? Although SPW scored positively on that first point, we also detected a lot of questions and uncertainties: will there be enough left for me and what can I expect from my pension fund? You can explain to them that those worries are largely unfounded. You can also put it in stronger terms by promising that the participants’ investments are in good hands.”

Making promises. But, with the new pension contract, isn’t that exactly what we are trying to get away from?

Jim: “With these six promises we are not going to do something completely new, or promise things we have never done before. The promises that participants and employers have chosen are showing things that we were already doing on a daily basis, but that they didn’t necessarily know much about. So, we are responding to questions that our participants and employers already had. These questions will not be that different when the new pension contract kicks in down the road.”

What was APG’s role?

Birte: “25 of our people were involved in the creation of the promises. From people working at the Client Contact Center (KCC) to the Employers’ services and Pension administration departments. These promises are also very valuable to APG, because they give APG employees more clarity about what is expected from them and provides a focus in the service.”

How will you make sure that these promises are really going to settle in the DNA of SPW?

Birte: “We are going to go live in controlled phases and will take a year and a half to fully integrate the promises into our services and communication. We will stay in touch with participants, employers and APG employees to see how it goes. We are now starting on the external branding campaign to inform employers and participants, with the objective of creating awareness during this phase.”

SPW’s six promises

1 Guaranteed income for the rest of your life, for you and your partner.

A guaranteed income for the rest of your life, but also for your partner and your kids if you die. Ensure income in case of disability.

2 Your investment is in good hands, with proven returns.

SPW achieved an average investment return of 7 percent for the past twenty years. Investments are transparent, responsible and socially conscious.  

3 Room for you to choose what you want to do with your pension.

You choose when you want to retire, partially or completely. First a bigger amount and later a smaller amount. Partner’s pension or no partner’s pension.

4 Personal pension check, to use when you want to.

Online, by phone on chat. Use it when you want to. Because you want to know if you’re on the right track. Or because something changed in your life. Or because you want to apply for your pension.

5 Complete overview and insight into your future income.

Always and everywhere clear overview & insight at Mijn SPW (My SPW). All expenditures and income in a row. So that you know what you are doing now and how much money you need. And you can see what you want in the future and how much of a pension you will need at that time. You can choose and calculate for yourself in Helder Overzicht & Inzicht (Clear Overview & Insight), the calculation tool in Mijn SPW.

6 Pension plan for all of us, customized for housing corporations.

Developed in collaboration with all relevant representatives of employers and employees in the sector.

Today, the government is presenting the annual budget. Will the position of working and retired people in the Netherlands improve in 2021? Six questions about Prinsjesdag and pensions.​​​​​​​

1. The government is talking about a 3.5 percent growth of the economy and a 1.2 percent increase of purchasing power for employed people and 0.4 percent increase for retirees. That sounds – moderately – positive. But how certain are those predictions?

It is a fact that the government is lowering taxes by 1 billion Euros to improve the purchasing power of Dutch citizens. Despite the fact that there is no indexing in 2021 for most retirees, on average their positions will improve slightly (by 0.4 percent). Employees who are keeping their current job in 2021 will also slightly improve on average (by 1.2 percent). This means that many employed people and retirees will have a little more money to spend next year.

At the same time, this requires some comments. In short: purchasing power pictures don’t mean that much, particularly right now. The purchasing power pictures are determined by the development of wages, inflation and government measures. The latter is the only thing the government can fully control. And now that the uncertainties around the development of the economy and the employment market are even bigger due to COVID-19, the predictions mean even less this year than they did in other years.

It is expected, however, that more employees will lose their jobs in 2021. They will be spending less, not more. This figure is not included in the purchasing power pictures. In addition, municipal charges, such as the real estate tax and parking rates may go up, because many municipalities are having financial problems. This has also not (yet) been incorporated into the purchasing power pictures but may have a big impact.

Also see: https://nos.nl/artikel/2348194-koopkrachtcijfers-zeggen-niet-of-jouw-koopkracht-omhoog-of-omlaag-gaat.html

2. We are also hearing about a shrinking economy due to corona, higher premiums and price increases. How will that affect working people and retirees next year, in practical terms?

The purchasing power pictures always take into consideration higher wages, lower taxes, higher prices and slightly higher care premiums.  If you add up all the plusses and minuses, most people will be slightly better off. But that is very uncertain. The local municipal taxes could rise (significantly).

3. What role does corona – and a possible second wave – play in this story and in the forecast of pensions in 2021?

If there is a second lockdown in the Netherlands, the Dutch economy will develop less favorably than predicted. That would postpone the economic recovery for some time. For the pensions in 2021, the coverage ratio of the end of December of 2020 will be key. Corona may have an impact on that, but faith in the financial markets is determined by several factors. For example, we saw very high share prices in August of 2020 despite the great uncertainty around corona in, for example, the US, Brazil and India.

4. Today, we also found out that some funds are still below the 90 percent coverage ratio. What could that mean for pensions in 2021? What scenarios are possible?  

For pensions in 2021, the coverage ratio of the end of December of 2020 is determining. If the coverage ratio is still below 90 percent at that time, in many cases there will need to be a decrease of pensions. The funds will then still be able to opt for spreading this decrease over time. A decrease in pensions is not included in the purchasing power pictures.

5. Last week, a survey showed that the life expectancy of the Dutch person has been adjusted downwards. Will this have consequences for pensions?

The Actuarial Society has indeed lowered the average life expectancy. This is related primarily to a refining of the model used. The life expectancy has not suddenly declined. According to the Society, a 65-year-old now has half a year less than was expected previously. For a man, the life expectancy at age 65, for example, has changed from 20 ½ years to 20 years. Because pension payments will then have to be paid out for an average of half a year less, the coverage ratio rises by an average of 2 percent. It is important to mention here that the exact figures are different for each fund. The figures do not yet take the corona crisis into account.

​​​​​​​6. But do the funds play a role in the recovery of the ailing economy resulting from corona?

Prinsjesdag this year is primarily about how we, as the Netherlands, can come out of the COVID-19 crisis in terms of investments. The government pre-empted this with a recent presentation by the Nationaal Groeifonds (National Growth Fund), which should boost public investment in the coming years. The Dutch pension sector understands and supports this movement towards active economic investment policy by the government. The Dutch pension sector would also like to increase its social role as pension investor in the Netherlands and elsewhere. For example, by pulling the Netherlands out of the crisis, in an accelerated and more sustainable way, based on public-private cooperation with the government

See link for a position paper by the Pension Federation, leading up to Prinsjesdag.

The Wellington Block is located just a two-minute walk from Covent Garden, in the well-known theater and entertainment West End area of London. APG is investing in the redevelopment of this special site in joint venture with London Central Portfolio (LCP). Purchase price 84.4 million Euros.

The Portfolio Club (“TPC”), a joint venture between APG and LCP, purchased the attractive hotel property in the heart of London from the British real estate company Capco. In total, TPC is purchasing six buildings that are connected to each other and together form the Wellington Block.

Planning approval has recently been obtained for the Wellington Block to be redeveloped and expanded into a hotel with at least 146 rooms and a shopping and restaurant section. It is expected that the hotel will open its door to its first guests in 2023.

Unique location

In addition to the unique location, the hotel will also differ from other hotels in other ways, according to Foortse. “With this hotel concept, we are focusing on a wide public at this location: from tourist to business travelers and from a one-night stay to several weeks or even months. The rooms also have their own cooking area, in addition to the usual facilities.”

By focusing on several target groups, the hotel will be less sensitive to big fluctuations in, for example, the number of tourists or business travelers. Foortse: “Particularly in these uncertain times, these kinds of formulas have proven their relative strength.” 

Strong formula

Naomi Heaton, Chief Executive of TPC also believes in the formula. With the combination of beautiful architecture and a top location, she believes a broad target group is being addressed; from national to international.

In addition to the Wellington Block, TPC also has a second hotel site at another sought-after location in Central London. At the end of 2019, the APG and LCP joint venture purchased Harrington Hall in South Kensington. The 237 rooms at Harrington Hall are currently being renovated according to the same concept as Wellington Block. The expected reopening of Harrington Hall is at the end of 2021. Foortse: “We hope to expand our portfolio in London even further in the coming period.”

APG partners with Nationale DenkTank 2020

How do we enhance well-being and prosperity and increase the control for middle groups, in cities and regions, now and in the future? This research question, shortly formulated as ‘A better perspective for middle groups in the Netherlands’ kicked off the fifteenth edition of the Nationale DenkTank 2020 today. Twenty selected and talented academics delve into this topical issue the next four months and will present their solutions by the end of the year. APG is proud to join the Nationale DenkTank 2020 as a theme partner, together with the Ministry of Social Affairs and Employment, the Rabobank and the municipality of Amsterdam.

The pressure is high

If anything was revealed by the corona crisis, it is the vulnerability of our middle groups. Living in the proximity of work, having a grip on your own financial situation and a good perspective on the employment market appears to be unfeasible for many Dutch. The Nationale DenkTank 2020 is therefore focusing on four tangible and topical issues:

• Grip on finances, now and in the future: Saving money is not sexy. How do we ensure financial skills and grip and control on finances for the middle groups?
• Living and living environment: How do we arrange for sufficient affordable housing and a higher sense of broad well-being in the living environment?
• Chances on the employment market: How do we make sure that our teachers, window washers and police officers are resilient and agile on the future employment market?
• Schemes: What are the expectations of middle groups towards our schemes and how can we close the gap between expectations and impacts?

According to Gerard van Olphen, chairman of the Board of Directors of APG, this year’s theme seamlessly aligns with everything APG stands for. “Providing support to middle groups is ultimately at the core of our existence. Think about all of those teachers, nurses, police officers, construction workers and many others who are counting on us for their financial future. That means it is only logical for APG to recognize the fact that these groups are under pressure.”

The more tangible, the better

Apart from financial support to the NDT’20, APG also provides the knowledge and expertise of several colleagues in order to challenge the participants in the think-tank and to stimulate them to come up with creative solutions. How can we, for example, support middle groups in thinking about their financial future in a timely manner and in giving them more control?

Van Olphen: “The more tangible the possible solutions, the better. A plea to politics to make certain decisions is great, but we are hoping for actions APG and, better still, the pension industry as a whole, is able to take proactively. It’s about us being able to implement the results as pension industry and society. A strong position of middle groups contributes to the Netherlands being more prosperous, which is in the interest of all of us.”

What is the Nationale Denk Tank?

Foundation the Nationale DenkTank organizes a Nationale Denk Tank (NDT) every year with twenty young academics from different educational backgrounds to tackle a social problem. The NDT was established in 2005. The central issue during the NDT 2019 was “How do we realize a digital society that is healthy, resilient, honest and inclusive?”.

In the 2020 AGM (Annual General Meeting of Shareholders) season, APG and other investors voted out remuneration proposals at four Dutch listed companies. This demonstrates that socially responsible investors such as APG are taking advantage of their increased influence on executive pay at listed companies.

APG - on behalf of its pension fund clients ABP, bpfBOUW, SPW and PPF APG - voted against the new remuneration policy at Besi, Wolters Kluwer, Euronext and SBM Offshore. Overall, shareholders voted out executive pay proposals at five Dutch listed companies; APG is not invested in one of these, metallurgic company AMG.

Say on pay

Since December 2019, the remuneration policy of a Dutch listed company must have at least 75% of shareholder votes behind it. In addition, a company must explain in its remuneration report - in which a justification of executive salary and variable remuneration is provided - how they take ‘social acceptance’ into account. Shareholders have an advisory vote on the remuneration report, the so-called ‘say on pay’.

APG also did not support the remuneration policy at, among others, Van Lanschot Kempen, Basic-Fit and Signify (the former Philips lighting division). One particularly notable negative vote related to Ahold-Delhaize, the parent company of Albert Heijn. We think it was inappropriate for the company to have reduced the importance of sustainability in determining executive renumeration. In addition, Ahold-Delhaize applied only one sustainability measure - the share of healthy food in the sale of its own-brand food products - which furthermore is barely certifiable.

APG wants to see sustainability criteria incorporated into executive remuneration policies of listed companies. “But the criteria must be relevant, transparent and objectively measurable,” says Mirte Bronsdijk, corporate governance specialist at APG Asset Management. However, a large majority of Ahold-Delhaize’s shareholders supported the company’s proposal.

Over the whole developed market equity portfolio, there was a slight increase in the percentage of say-on-pay proposals that APG voted for, moving from 45% in 2019 to 53% in 2020. A large share of our negative votes relate to excessive CEO severance payments in the United States. In the US, severance payments of more than twice the salary plus bonus are fairly common. Compared with Europe and the UK (72%), the level of approval in the US is relatively low (37%).

More women at the top

Shareholders voted on nineteen directors’ appointments at Dutch listed companies; in seven cases a woman was appointed. Most new appointments to Supervisory Boards - which oversee management - went to women. Eumedion, a partnership of large Dutch investors that also includes APG, urges companies to achieve a better gender balance in top positions. Of the companies included in the Dutch stock market index AEX, only ABN AMRO currently does not meet the future statutory quota of one-third women on the Supervisory Board.

Follow This shareholder resolution

Oil and gas major Shell was the only Dutch company this AGM season where a shareholder resolution was put to the vote. APG abstained on a resolution filed by activist shareholder group Follow This, calling on the company to commit to binding climate targets for 2050. While we share the ambition for a climate-neutral economy by 2050, we do not want to continue arguing over long-term binding targets. As far as we are concerned, the focus at Shell (and other oil and gas companies) should be on implementing concrete measures to achieve its recently boosted climate ambitions.

APG supplements additional parental leave up to 100 percent

The time that partners had to resume work five days after the birth of their child is a thing of the past. As of July 1st, Dutch employees whose wife gave birth are allowed to take five weeks of additional leave. APG employee Martijn Klinkeberg: “I will absolutely take that leave and enjoy the little one as much as I can.”

This additional parental leave is a supplement to the current law WIEG, pursuant to which partners receive continued payment from the employer for five days following the birth. The total period leave now sums up to six weeks. The five additional weeks can only be taken after the usual parental leave of five days has passed and within six months following the birth. The UWV (Executive Institute for Employee’s Insurances) continues to pay 70 percent of the salary as per the new arrangement. APG offers its employees retention of monthly pay up to 100 percent.

Inclusive

HR manager Marjolein Kort explains the choice to supplement the benefits. “As an employer, we believe it is important for the awareness with respect to diversity and inclusion to be enhanced and to make tangible efforts. One of those tangible agreements is supplementing the parental leave. APG has already been supplementing the WAZO benefits for adoption and foster care leave up to 100% of the monthly income since January 1st, 2019.”

Reflection

In order to reinforce this intention, APG signed the Charter Diversity in 2016 aimed at stimulating diversity and inclusion in the workplace for companies and organizations. In summary: “It is only possible to cooperate really well in an organization where people are appreciated for who they are. In a safe environment with the potential to be who you are, where your voice is heard, in which you are able to develop your own skills and can also encourage others to develop. The ambition of APG is for its workforce to reflect the participants’ population, our commissioning funds and society to a greater degree. And this is only the beginning of what we are intending to do in the field of diversity and inclusion.”

Man/woman

Martijn Klinkeberg, social media coordinator at APG, is expecting his second child in September. As a father, he is happy to be given the possibility to take additional leave. And as an employee, he really appreciates APG being the frontrunner to pay the additional parental leave up to 100 percent. “APG puts in a lot of efforts to be a Great Place to Work. APG has eliminated, for example, the pay gap between men and women. And the under-representation of women at the top also is a priority for APG.”

Equal burden

Martijn will make use of the additional parental leave. Even if APG would not supplement. “I will absolutely take that leave and enjoy the little one as much as I can. These early days are worth more than the lack of income it would entail.”

“Of course, what isn’t there, what you don’t see as a father, you don’t miss”, Martijn continues. “But we are meanwhile living in a time where things are no longer obvious. It is an outdated tradition that the woman takes care of the child and the man continues to work. So, it is really great to see that we are given more space as a man or a partner and that we are able to share and experience both the burden and the great moments together as parents.”

Martijn does not worry that others may consider him less ambitious. “I do not think my generation is really bothered with that. Your career is not depending on five weeks of leave. On the contrary, I believe this leave actually is a positive contribution to your work attitude. If you have more influence on the situation after your child is born, I believe you are able to carry out your work with more energy and inner peace.”

APG increases its ambition significantly, not only in terms of sustainability but also in the field of healthy office buildings for APG employees: both at the new premises in Amsterdam and in Heerlen.

The person entering the new premises of APG “Edge West” at the Basisweg 10 will immediately notice it: stairs. Not tucked away somewhere in a draughty staircase like in many offices, but in plain sight which implicitly says: “We are going to skip the elevator for today”. The daylight shining through the glass roof provides a bright-green color to the large trees and living walls. Water taps are to be found within a range of thirty meters on the APG office floors. Standing tables are placed here and there, tempting you to get out of your office chair once in a while.

Health and well-being at the office continue to be important themes for APG. Even now the workplace at home has proven its worth as an alternative due to corona. Marga Petridean, Facility Service contract manager housing at APG: “What we have learned from the corona crisis, is that working from home may be a good alternative, but also that the office continues to be an important place to come together and to get inspired. One thing we know for certain at APG: once the employees return to the office, health and well-being are paramount. A healthy and pleasant working environment contributes to the well-being of our colleagues and ensures for people to be happy to work at APG.”

The themes are taken very seriously by APG, according to Marga. A number of years ago, a certificate for well-being and health was introduced: the WELL Building Standard. Marga: “The design of our renewed office in Amsterdam makes us aim for the so-called WELL Gold certificate for the interior, in addition to the WELL Platinum certificate for the building shell which will be awarded to Edge West as one of the few offices in the Netherlands.”

After publishing this article, APG came to the realization that to achieve a healthy working environment in line with APG's vision it is sufficient to operate the interior WELL guidelines for our office buildings in Amsterdam and Heerlen without gaining certification. APG none the less acknowledges the value of the WELL standard and will continue to pursue it, but no longer with the ultimate goal of obtaining the certificate. However, it remains the intention to obtain the WELL platinum certificate for the shell building.

Certificate

APG has asked CBRE Development Services to have the new office Edge Amsterdam West meet the requirements of the certificate. The building already has a high ambition with sustainability certification BREEAM Outstanding. So, what is the reason for yet another certificate? Zaida Thepass, Sustainability Consultant at CBRE: “In order to achieve the WELL certificate, measurements are actually taken within the building itself to assess whether you fulfil the requirements set for air quality, acoustics and lighting, for example. It is the first certification aimed specifically at the health and well-being of the users of a building. That is what distinguishes this certificate from many other quality labels. This standard was established after seven years of research and developed in cooperation with physicians, scientists and real estate professionals.”

It is much more than just a piece of paper, Marga emphasizes. “By meeting the criteria of WELL, we contribute to a higher level of well-being, better performances and a lower level of sick leave. The corona crisis has made us focus even more on air quality. So, we are very pleased that this is already incorporated in the WELL certification.”

We will also apply WELL to the building in Heerlen, Marga underlines. “As the building in Heerlen involves an existing construction, we have to conduct further research to what extent we are able to give shape and substance to the APG ambition with regard to WELL. That does not always have to be complicated. We already took a few well-being measures in Heerlen by, for example, removing the coffee machines from the workplace. That is a way of stimulating employees to walk more and to make quite a few steps in a day in a simple and unnoticed manner.”

Gerard van Olphen in response to Black Lives Matter

Unfortunately, this article is not available in English.

Companies in sectors at risk for involvement in human rights abuses show modest progress in respecting human rights.

A limited number of companies score particularly well in the annual benchmark, which was published for the third time in London on Friday. Adidas (apparel), Unilever and Marks & Spencer (agricultural products) and Rio Tinto (extractives) are leaders in their respective industries. In addition, there are a number of companies that have significantly improved their human rights performance since the launch of the CHRB in 2017, e.g.  Inditex (known for the Zara brand), Heineken and Repsol.

On the right track
“The leading companies demonstrate that action on human rights is possible within a competitive framework,” says Anna Pot, Manger Responsible Investments US at APG Asset Management. “We see that corporate performance on human rights is improving. Companies disclose more information about their efforts and challenges and increasingly incorporate respect for human rights into their strategies. We are on the right track and should continue in this direction.”

No complacency
While some leading companies have improved significantly, there is no reason to be complacent, says Pot. “Over half of the companies assessed fail to demonstrate they are meeting any of the United Nations Guiding Principles on Business and Human Rights’ (UNGP) requirements. These laggards need further and greater pressure to act, in particular on effective due diligence.”

APG, on behalf of its pension fund clients, was one of the CHRB co-founders in 2017 and actively takes part in the building of the benchmark. “We contribute to this since we, as stewards of capital, are keen to improve corporate human rights performance,” Pot explains. “The CHRB provides good quality data which we, as a responsible long-term investor, need to make investment decisions and to engage with investees.”

The CHRB measures how 187 companies in the apparel, food & beverage, extractive and tech manufacture sectors perform across 100 indicators based on the UNGPs on Human Rights. It uses publicly available information on issues such as forced labor, protecting human rights activists and the living wage.

Expanding scope
APG uses the CHRB data to review (potential) investments and inform engagements with companies. This relates in particular to the thematic engagements that APG, on behalf of its pension fund clients, does in the apparel and extractive industries. Other investors are now using this data as well. “The CHRB is increasingly recognized as the standard on measuring corporate human rights performance,” says Pot. The merger with the World Benchmark Alliance (WBA), also announced on Friday, offers the opportunity to greatly increase the number of companies assessed on human rights performance.  

“I am also glad to see that the scope of the benchmark is expanding to include more companies and sectors,” says Pot. This is all the more important since the results show that the publication of the CHRB can have a positive impact on corporate human rights performance.” This year, tech companies were included in the benchmark for the first time.

APG is different. It has two women and a “diversity officer” (a man) on the 5-member supervisory board and it adjusted the wage gap last summer. “This is a priority for us. We are way ahead of the commercial world.”

Francine, member of the supervisory board, who is responsible for the business component of Participant and Employer Services, and who was recently presented as a commissioner by engineering firm Royal Haskoning, also talks about her career step, from Marktplaats, Miss Etam and Xenos to APG, about diversity and about the sexist and inappropriate comments she still has to deal with inside and outside of the board rooms, in her interview with NRC.

And while talking about the usefulness of a women’s quota for top positions, she also overturns the counter argument that women that get to the top due to a quota are seen as token women. “That’s just nonsense. Then you’re missing the essence of why you would temporarily employ such a measure - and it must be temporary; 8 years, or, for example, two terms. It is to create an equal playing field and to break through an old pattern, by increasing opportunities for a group that is currently being insufficiently promoted and is under-represented in the top. We really must get rid of the idea of the token women.” 

“My motto is: focus your energy on what you can change, how you can make an impact. Saying you don’t like something doesn’t count.”

 

Read the entire Dutch interview with Francine van Dierendonck in the NRC here.

She has spent her entire life sailing on the water, and yet, Carolijn Brouwer sees many parallels between her work and “normal” business life. During next week’s APG Summer Course in Rotterdam, the sailor takes along the directors of pension funds as she talks about her experiences during her sailing career. Topics such as dealing with setbacks, setting targets and leadership will be addressed.

Collaboration is the greatest resemblance with business life. You don’t have to be each other’s best friend, but you must be able to stand as one as a group”, Carolijn sets off. And this collaboration does not come naturally. You have to work on it, together. But how is this done?

“Communication is extremely important”, Carolijn continues. “We often sail under harsh conditions. And you can’t hear each other very well when the wind is blowing and the rain is pouring down. Imagine during the night, when it’s pitch dark, you are not even able to see one another. In that case, clear communication is incredibly important. Clear language, which is a challenge on its own, as there are several nationalities on the ship. The official language is English but the French, for example, are difficult to understand speaking English and that is hard to follow for our Chinese teammates.”

Working like an oiled machine
So Carolijn has worked very hard with the Chinese Dongfeng Race Team, with whom she participated in the Volvo Ocean Race, to become an oiled machine as a team. “We had to become one, but always leave room for improvisation. Out on the ocean, it has to be possible to change course. Following plan A and plan B, you sometimes have to move on to plan C due to unforeseen circumstances, such as the weather. If you know each other well and can communicate properly, you are able to respond to change in a more agile manner.”

No egos together
Looking back on her winning team, Carolijn continues: “Other teams sometimes envied the way in which we collaborated. Even though our team was very divers - seven men and two women of different nationality and age - we were a tightly-knit group. We didn’t only train our muscles on the water, we spent day and night together. We knew each other’s weaknesses and strengths. This also meant that we were able to bring out the best in each other, to give each other strength. That’s how we helped each other sail around the world. Our bond was unique. And that’s important for groups, also in business life. Make sure you create that bond together. Our captain didn’t choose us for our great sailing skills, he wanted to be surrounded by people who were strong as a person, especially during hard times. It wouldn’t work, putting nine egos on one ship.”

Leadership is another important factor when working together. “There is definitely a hierarchy on board. The captain makes all the decisive decisions, for example, when the ships capsizes and we have to get into the lifeboats. Other than that, there’s always someone in charge on deck and the rest of the crew is there to execute. But the entire process is democratic. We act in mutual consultation and the entire team is involved making a decision.”

Women at the helm
Another parallel that stands out to Carolijn: diversity in the workplace. “The sailing world is also dominated by men. I participated in the Volvo Ocean Race for the first time in 2014-2015 with a team entirely made up of women. The other seven teams were fully composed of men. My team didn’t do very well. Twelve years prior was the last time before this race that women were sailing along. We therefore lacked experience and training in terms of ocean racing. Mixed sailing was then introduced in 2017-2018. So, things are starting to move, but very slowly.

Thinking you can cope with anything
Carolijn considers it her duty, together with her French teammate Marie Riou, to fight for women in the sailing world. “You can see “women empowerment” emerge everywhere. We are trying to help young women and girls develop further in the sailing world. To earn their money professionally with this physical and quite extreme sports. When it comes to teams having to choose between a man and a woman, they often opt for a man. It’s a fact you can hardly ignore. But what we, women, would like to show is that our body allows us to get the maximum out of it. When I was as fit and strong as I could possibly be, I felt as if I could conquer the entire world. That was most important to me. I would never be as strong physically as that young Chinese man standing next to me, but in my head I was. I am trying to get that message across to the upcoming generation. I could do it, and so can they.”

And the diversity has broadened, as Carolijn has also witnessed. “The most important thing is for your team to have a mutual goal, no matter your gender, origin or age. If everyone has a unity of purpose, all differences between men and women, Dutch and Chinese, young and old just disappear. You are all working together to achieve a common objective. All of us wanted to win that Volvo Ocean Race, so we left all of those small and insignificant matters behind us.”

Taking care of your own retirement
In addition to the common goal as a team, Carolijn is also working on her own future. This subject is lacking similarity with the “normal business life”. “I will be standing in front of a room filled with directors of pension funds to give my speech, but I am actually not accumulating any pension myself! Olympic sailors are covered by the Waterschapsverbond (waterboard alliance) and will therefore build up pension. But this is not how it works in ocean racing: we always have to look for sponsors and investors and are not linked to a sector. My partner, who is also a sailor, and I invest in houses in the Netherlands and Australia which I consider my own pension accrual. But it might be an idea for pension funds to bridge this gap in the market. Because we are actually very much on our own.”

The APG Summer Course is an inspiration meeting for pension fund managers of funds that are clients of APG. During this summer school we challenge administrators and ourselves with new insights from "outside".
One of the speakers was Carolijn Brouwer; a Dutch sailor who was named the best sailor in the world in October 2018. She sees many similarities between sailing at sea and business.

Today, APG chairman of the board Gerard van Olphen has sign an agreement in The Hague under which the Dutch financial sector will commit to the targets of the Climate Agreement and the Paris Agreement.

He comes back to this idea several times during the interview: this is a unique commitment. It is the only one of its kind. ‘Pension funds, insurance companies, banks and asset managers are voluntarily committed to this approach and will be transparent in their accountability to society. This commitment on the part of the financial sector will have a truly enormous impact. After all, the sector makes up 80-90% of the money in the Netherlands. The signatories to this agreement today represent €3 trillion. This makes the Dutch financial sector a catalyst for and promoter of the transition that the Netherlands has to undertake. We are shaping the future. Contributing to the achievement. And yes, I am very proud of that.’

Of course, as Van Olphen also knows, industrial companies themselves have to make their factories cleaner. ‘We can't do that for them. They will have to reduce their carbon emissions themselves. But the fact that when we assess industry business cases we are not only evaluating financial feasibility but also compliance with the Paris targets, which means that polluting or less ambitious initiatives in the field of CO2 reduction will have more difficulty in obtaining funding than plans that really contribute to sustainability.’

The uniqueness of the joint declaration has not escaped the notice of neighboring countries either. In Brussels, in London, at the G20: the finance minister, sector representatives or Gerard van Olphen himself will discuss this commitment on various foreign venues in the near future. The international financial community welcomes this typically Dutch “polder manifesto”. Van Olphen: ‘The financial sector in many countries is more inclined to support climate agreements than to help shape them.’

What is it that makes this document so special?
‘In the financial sector, you are primarily responsible for other people’s money, so you have to have a solid risk/return profile. You can't tell people that their pensions will be lower because we have to finance the energy transition. But this is a huge commitment, and I would almost say it is catalytic. This is because we intend to determine and report on the CO2 impact of all the relevant investments we make. We will then agree on reductions in line with the Paris targets. In other words, 49% lower C02 emissions by 2030. And we will hold ourselves publicly accountable for this in the framework of a national accountability system. Once a year, as a consequence of the climate agreement, the minister consults Parliament with a view to explaining: are we doing enough in the area of the climate? Will we achieve our targets? This commitment is integral to that.’

You are proud of the commitment involved, but not entirely satisfied. Why is that?
‘When I was invited to be the chairman of the Financing Task Force, the scenario was that we wanted to bring a climate agreement to the Lower House before the parliamentary recess in 2018. The Netherlands intends to make rapid progress on the energy transition. That turned out to be a more difficult process than we thought. Initially, five primary committees were involved. Initially, financing was intended to play a supporting role, in the same way as the labor market. Our vision was that at the level of the primary committees - transport, agriculture, construction, electricity, industry - a great deal was already happening, and they would be coming to the financing committee with very specific investment questions. Such as: ‘we are planning to build a light rail from the Randstad to Schiphol, we need hydrogen power stations or we need large-scale electrification.’

But in practice, the situation proved to be problematic. ‘Because nothing happened.’ Sometimes as a result of conflicting interests, but also because there was no clear direction in the climate plans. There were still many options to be considered. The Netherlands is going to use electrification or hydrogen. Will there be any legislation on CO2 pricing? So a great many conditions for a successful business case had not yet been met.’ In retrospect, this was also very logical. The subject matter is comprehensive and complex and also requires broad public support, and I was probably a little naive at the outset as well.’

No direction, many different interests.
‘Someone told me what their experience was: ‘When I started I thought it was a football match. But halfway through I think to myself: I'm now standing in front of the goal and something is flying towards me. First it was a football, then it became a baseball somehow, and now that I'm expected to head it, I'm not sure it's not a bowling ball. And before I do that, I'd like to know for sure one way or another.’

Is that how you experienced it as well?
‘To put it diplomatically, our first phase was one of finding our way. What also became clear to us, besides the fact that there was a lack of direction, was that the committees were not familiar with the structure of the financial sector. When the issue came up at one of the committees: we need money, our counter-question was: what kind of money? Well, money. But what kind of money? Well, euros. The question from the financial sector is then:  Risk-bearing, non-risk-bearing, short, long, hybrid?  And so we developed a financing guide so that they could better understand supply and demand in the field of financing.  We also worked closely with the majority of the primary committees, sometimes in joint workshops, sometimes through participation in the relevant committee or in some other way.’

In February of this year, after a great deal of media fuss about the affordability of the transition, the government issued a broad outline of their assessment of the agreement. This prompted the task group to consider its role in the follow-up. What's next?  ‘We then agreed to focus on two things. The first was the commitment that we are signing today. The second was to help support Invest NL. In the meantime it had been decided to found Invest NL, an investment company belonging to the Dutch State and managed by Wouter Bos.  Invest NL acts as a point of contact and facilitator for parties looking for financing in the context of the energy transition.  It is the investment company that has received 2.5 billion from the state to advance the transition. The idea is this: we are not going to finance the energy transition with this EUR 2.5 billion, but if we invest it in the right place, the private market may be able to invest many times more than that on market terms, and this will make investment capacity available.’

And now we the commitment is there. Aren't you afraid that this will be a paper tiger? It seems like a horrible job to me to standardize the measurements.
‘The next chapter is: how do we make sure this happens? This must not become a paper tiger. This really must be something where the financial sector will genuinely be accountable to politics and society for their efforts. So there must also be an independent guarantee, and it will be difficult to say at first: party A reports using one standard, party B reports using another standard, but what matters is: is the underlying trend the right one? And if it's not the case, that party should be able to say: dear financial sector, you need to redouble your efforts.

And that independent actor will be there?
‘Yes, it is going to happen.’

The problem is that you can't impose sanctions. At best because parties that are lagging behind will have to account for their actions publicly. Or because the sector is exerting pressure.
‘My first instinct is not to resort to naming and shaming. But let's say hypothetically that if a party is known to be clogging up the works, the sector itself will eventually make corrections. The sector has now gained sufficient experience with painful situations where they have been called to account and have themselves been too slow to take action. Whether you look at profiteering policies at insurance companies, interest rate derivatives at banks or how pension funds communicate pension cuts, these social discussions have taught us that this is not how it works.’

So how does this affect APG itself?
‘This means that APG, as a company, is also committed to reducing CO2 emissions in line with the Paris targets. This implies decreased travel and reduced gas consumption. Everything that comes into play in society will also affect us as a company. Sustainability is not something that our clients necessarily expect from their investments, but it is what we expect at APG. This means that our annual report will state how much C02 we emit and how we are going to ensure that this will be 49% lower in 2030. What does that mean in terms of accommodations? In terms of how we travel? How are we going to heat our buildings? From 2020 onwards, the theme of sustainability will be high on the agenda of APG itself.’

And beyond the company itself - what does this mean for the stakeholders, consumers who read in the newspaper that the energy transition is unaffordable?
‘Of course, the transition will be costly. The idea that some of the news media presented was that in five years, everyone will have to cook electrically, or have solar panels on their roofs. So that's our starting point now, and the question is who is going to pay for it? But what matters is that you adapt to match the natural flow of the consumer. The financial sector will of course be there to support consumers in their decisions. So if you, as a consumer, want a new kitchen, then the lender will say: if you are going to make a choice anyway, then it's better to go for induction. That's different from saying: I've just had a new kitchen installed and now it turns out that I might as well replace my stove in two years’ time. When you are making choices about financing your kitchen, your house, your car, your company, you will find a bank, an asset manager or a pension fund that will say: we will help you finance your needs, but at the same time we will work with you to think about how you can make sustainable choices.’

Equal work will be rewarded equally at APG. More than 125 female employees of the pension delivery organization have received a letter today stating that from 1 June their salary will be brought to the same level of male colleagues with similar positions, experience and years of service.

APG conducted a study across the APG offices in the Netherlands. The study shows that women at APG in The Netherlands, receive an average 2.2% less salary at APG. More than 125 female employees will receive a salary increase on June 1. That is 13% of the total number of female employees. For the remaining 87% of women working at APG, there is no difference in pay with comparable male employees. APG employs around 3,000 employees, including 960 women.

The higher remuneration of this group of employees with an unequal salary is achieved within the existing budget of APG.

Marloes Sengers, HR director at APG: “At APG we stand for equal pay for equal work, which is why we rectify this today. The difference in remuneration will also be solved by us in a sustainable way: financially and with additional attention to managers and employees. In this way we prevent repetition in the future and we tackle the causes of the unequal pay in a sustainable and fundamental way.”

On Tuesday afternoon, February 12, APG received more than 100 elderly people from the Heerlen region at the head office..

Gerard van Olphen, CEO of APG, welcomed the elderly to the ‘ZilverUitje’, helped with serving and had a chat with the elderly people. Also acting mayor of Heerlen, Emile Roemer, was present to meet the elderly. Roemer: ‘The ‘ZilverUitje’ is of course an initiative that you can be proud of as a company. Especially when you look at the target group, what it is about and how you can put people in the spotlight. They are people who really deserve it. Yes, this ‘Zilveruitje’ is really beautiful. "

Collaboration

APG worked together with caterer Sodexo for the ZilverUitje. The National Elderly Fund was present with a stand, with which it draws attention to its initiatives: the ‘Zilverlijn’, the BoodschappenPlusBus and social activities.

Social contact is important for a beautiful old age

APG provides the pension for millions of people on behalf of their pension fund. Every day APG is working on a healthy financial future for teachers, civil servants, agents, construction workers, military personnel, medical specialists and other professional groups. But for a nice retirement, APG does not think a good pension is enough. Having human contact is at least as important. And because a large group of elderly people in the Netherlands have to do without or with very little social contact, APG makes an extra effort for them.

Initiatives APG to support the elderly

The ZilverUitje is one of the projects in a series of initiatives with which APG will devote extra effort to Dutch society in the coming years. At the end of 2018, APG announced that it would adopt the Zilverlijn: a free call service for lonely elderly people who indicated that they would like it to be called by an enthusiastic volunteer once a week. APG not only provides financial support, a large number of employees of APG call weekly on a voluntary basis with these elderly people.

As many as 1.4 million elderly people in the Netherlands face loneliness. As many as 200,000 of these people are extremely lonely. That means that social contact is anything but a matter of course for this vulnerable group of people. They only see another person once a month. To support them, APG is entering into a partnership with the The (Dutch) National Foundation for the Elderly. APG is adopting Zilverlijn: A free telephone service for elderly senior citizens who indicate that they would like to receive one phone call a week from an enthusiastic volunteer. As well as the financial support, APG employees will also be making phone calls to lonely elderly people voluntarily. The affiliation with The National Foundation for the Elderly is the first project in a series of initiatives with which APG will make an extra effort for Dutch society in the years to come.

Holiday periods are especially difficult for elderly people. Care providers and volunteers spend these periods with their families, which means that some elderly people barely receive any visits. That's why we plan to start making calls in precisely this period. By taking action for Zilverljn APG is hoping to contribute to relieving the loneliness of this vulnerable group of elderly people.

Gerard van Olphen, chairman of the Board of APG Group: "Together with pension funds, APG builds on a sustainable financial future for millions of Dutch people. But a good pension alone is not enough for a for a contented old age. Human contact is at just as important. Viewed from that perspective, the partnership with the The National Foundation for the Elderly is a perfect fit for the social role that we as APG want to play."

Corina Gielbert, managing director of the The National Foundation for the Elderly: "The partnerships with socially committed parties like APG are extremely valuable to us. The fact that APG employees are willing to communicate voluntarily with elderly people who would like to be called through Zilverlijn is valuable and could be a life learning experience. We know from experience that pleasant and also frequently emotional phones are made on this basis."

About The National Foundation for the Elderly

The National Foundation for the Elderly supports elderly people in the Netherlands with practical services and activities. Examples include beach outings, the BoodschappenPlusBus ('shopping-plus-bus'), OldStars walking football, Zilverlijn and Christmas dinners. All of the services and activities are intended to encourage social contact and self-reliance among elderly people in order to combat loneliness.

Read more about The National Foundation for the Elderly

How does APG as an investor contribute to the United Nation’s Sustainable Development Goals? That was the theme addressed by Ronald Wuijster, CEO APG Asset Management, in his speech yesterday at the annual Junior Chamber International (JCI) congress.

Some 4000 young people from more than 100 countries came to Amsterdam to discuss the goals the UN has agreed on to make the world more sustainable.

Let’s put the planet first

The congress at the Muziekgebouw aan ‘t IJ was opened by UN-icon and Nobel Peace Prize winner Kofi Annan who called on young people to raise their voices. According to Mr. Annan that is especially important in times of increasing populism. He referred to the Brexit-referendum in which many young people did not participate, resulting in the older generation having the decisive voice in leaving the EU. Besides this, Annan emphasized how important it is for the world to stand by the Paris Agreement on fighting climate change adopted in 2015. “I would say: let’s put the planet first.”

Kofi Annan’s influence on APG policy

In his speech Ronald Wuijster referred to the influence Mr. Annan has had on APG’s responsible investment policy being implemented from 2008 on. As Secretary-General, Mr. Annan was the founding father of the UN Global Compact, which defines how companies must behave when it comes to human rights, labor rights, the environment, and fighting corruption. These principles still form the foundation of APG’s approach today. Wuijster elaborated how this policy has evolved in recent years. When making investment decisions not only are returns, risks and costs taken into account, but increasingly sustainability and responsible business practices, with a prominent role for the UN’s Sustainable Development Goals. In 2020 APG wants to have at least 58 billion euros invested in Sustainable Development Investments that are not only financially attractive but also contribute to the UN-goals, such as renewable energy and sustainable real estate investment.

More about JCI

Junior Chamber International (JCI) is a non-profit international non-governmental organization of young people between 18 and 40 years old. It encourages young people to become active citizens and to participate in efforts towards social and economic development, and international co-operation, good will and understanding.

Demonstrating leadership means taking the lead in difficult situations. Combining something statistical, such as investing, with a broad concept such as human rights is a such a situation.

But at the same time this is something that pension investors, who select and manage millions in investments in a responsible way on behalf of participants, cannot circumvent. The realization that a way had to be found to measure in a structured and standardized way how companies deal with human rights, was broadly shared. This is why in 2013, a number of international investors, including APG, joined forces with social organizations and jointly established the Corporate Human Rights Benchmark. The objective of the Corporate Human Rights Benchmark (CHRB) is to rank companies after completing an assessment based on a hundred indicators that provide some information about their human rights policy and practice, such as working hours, remuneration, physical working conditions, and preventing child labor. Aside from this, the benchmark specifically looks at the way in which companies respond to allegations of irresponsible behavior. The analysis is conducted on the basis of public information and input provided by the companies themselves. The first CHRB ranking was published in March 2017.

Here you can read the full article.

It is increasingly important for consumers to take responsibility for decisions about finances and work. Consumers will have to be better prepared in the future to address the effects of disability, unemployment, divorce, retirement or other family events themselves. In this Netspar paper investigates how consumers can be better enabled to manage risks themselves.

Confidence and ease of new financial applications via mobile devices.

Netspar paper Effective self-management support by, among other APG Alwin Oerlemans Collective provisions for social security and income (including pensions) are the last decade systematically retrenched and discussions are about the individualization of what there is left of it. At the consumer this is not yet reflected in a visible need for personal advice, but the low consumer confidence figures in institutions and financial parties speak volumes. As a consumer, you're on your own, that's the feeling. At the same time we are learning more about consumer behavior. We see that consumers are willing to share information and resources via new networks (supported apps), a large majority is online and is served by convenience new financial applications via mobile devices.

Understanding and action perspective

Roboadvicing is in the experimental stage, financial institutions, technology companies and regulatory authorities (DNB, 2016) look at how the rise of FinTech can help relieve the lives of consumers. On the labor market, we see rapid changes. An increasing proportion of the workforce has a temporary contract, working through a temporary business or yourself to work as freelancer. Keywords in the new economy have flexibility and choice. How the consumer is better able risks in terms of income, finances and work to manage themselves. Possibilities are integrated lifecycle planning and other options in the light of recent technological developments. The aim is to give consumers insight into his situation and an action perspective offer, both in terms of finances and assets as work and income at all stages of life.

Labor and financial services

This requires platforms required where consumers can find each other, information and solutions. Who makes these platforms come? What can the government do to make this a success?
Only in this way can be a response to the continuing shift of risk from government and business to any consumer and acting. Workers increasingly need to support their employability and financing of the life. Here the labor market affects the financial services market. The scope of collective employment is limited, these are increasingly the character of individual packages. At this junction which matches service workers by the hand, guides and helps to make better choices in their lives. These choices are about investing in employability, transitions to other work and save and invest for later when there is no income from work (more). How to provide these services in respect of finance, insurance and labor input form is the main question in this paper design.

Claims for consumers, providers and government

The researchers come, on the basis of the analysis of building blocks, business models, and bottlenecks, concluded at three levels (micro-consumers, meso - provider and macro-government). Consumers there is a need for convenient, but also personal and analytically sophisticated, supporting financial and career planning. For providers appears to be a co-creation model to offer the most opportunities, involving both cooperation with consumers, as with other providers. The researchers see different possible roles for providers, ranging from a role as an independent platform (commercial or represent consumers), to the development of an existing feature such as pension provider to a fully fledged self-management environment. The role of government is to indicate relatively less bright. Laws will have to find a balance between allowing, for example, flexible data exchange
between the parties, if the consumer so desires and safeguarding the privacy of consumers who do not want information to be shared.