JSR

Financial institutions play a crucial role in driving sustainable transformation across various sectors, with both the banking and insurance industries articulating strategies for sustainable investing. This article focuses on the Dutch private pension sector, a key subset of the Dutch financial system. The research aims to identify structural changes that can enhance the sustainable transformation of the Dutch private pension sector. Using a theoretical framework based on systems analysis and sustainable investment performance, data were collected through focus groups involving sustainability experts and insurance industry professionals, as well as in-depth interviews. The analysis revealed the multifaceted challenges facing the Dutch private pension sector in its pursuit of sustainability. From organizational dynamics to regulatory frameworks, several factors influence the adoption of sustainable investing practices. This study identified 12 rules that dominate collective behavior within the Dutch private pension system. These rules include barriers hindering sustainable investing, such as fears of greenwashing, accusations, and insufficient performance data. If the sector aims to increase sustainable investments, structural changes are needed in relation to these rules. This study recommends establishing a common objective framework for sustainable investments without imposing additional costs on insurance companies. NGOs could facilitate monitoring efforts and consensus-building, while government intervention is necessary to create a framework that incentivizes insurance companies to prioritize sustainability in their investments.

financial institutions; sustainable market transformation; Dutch private pension system; sustainable investing; systemic barriers