Inside the Integrating Impact Handbook

The Integrating Impact Handbook is a practical guide that brings together recent academic insights and practical approaches to integrating real-world impact into institutional investment practices. The handbook was developed by the Working Group on Integrating Impact within the Sustainable Finance Platform of De Nederlandsche Bank (DNB), a collaboration between financial institutions, supervisors and public organisations within the Netherlands. PGGM Investments chaired this working group that led the development of the handbook. The primary goal of the handbook is to help investors embed impact considerations throughout the entire investment cycle. 

The handbook aims to support institutional investors in systematically integrating impact considerations in their investment processes.In the handbook, ‘impact’ is used in a broad sense, referring to the positive and negative real-world effects that investment activities can have on people, the natural environment and wider social and economic systems. In doing so, the document contributes to the growing discussion around “inside-out” impact — the effects investment decisions may have on society and the environment — alongside the more established “outside-in” perspective focused on how sustainability-related risks may affect investment value. 

By combining recent academic insights with examples from investment practices, the publication offers practical perspectives and reflections on how impact considerations can be incorporated throughout the investment cycle. The handbook reflects the evolving nature of impact integration within institutional investing. Rather than presenting a fixed methodology or mandatory framework, the handbook aims to support ongoing dialogue, knowledge sharing and collaboration across the sector.

Exploring impact integration in institutional investing

Institutional investors are increasingly exploring how sustainability-related considerations and real-world impact can be reflected in investment decision-making. Alongside traditional financial risk perspectives, this has contributed to a broader discussion around the relationship between investment activities, long-term value creation and wider economic, environmental, and social systems.

The Integrating Impact Handbook was developed within this evolving context. By bringing together academic insights and practical examples from across the Dutch financial sector, the publication offers diverse perspectives on how impact considerations can be integrated into investment practices.

A distinctive aspect of the handbook is its collaborative foundation. Financial institutions, practitioners, and sector experts contributed to the publication as authors, reviewers and participants, reflecting a broad range of experiences and viewpoints from within the sector.

As the handbook itself states:

“Written by practitioners for practitioners, this handbook is an invitation to explore how the financial sector can contribute to a more resilient and sustainable system. It doesn’t provide all the answers, because integrating impact is complex, evolving and full of open questions. Instead, it reflects lessons from experience, and encourages ongoing dialogue, experimentation, and collaboration.”

Facilitating sector-wide collaboration

While PGGM Investments chaired the Working Group on Integrating Impact, the handbook itself is the result of a broad collaboration across the Dutch financial sector. The handbook was developed within the Sustainable Finance Platform of De Nederlandsche Bank (DNB), which brings together financial institutions, supervisors, government bodies, and academic partners to support dialogue and collaboration on sustainable finance themes.

A broad range of organisations contributed to the publication, including pension providers, insurers, banks, asset managers and academic institutions. Scholars from Erasmus University and the Sustainable Finance Lab (SFL) contributed academic perspectives throughout the development of the handbook, helping connect practical investment experience with ongoing research and discussion around sustainability transitions and long-term systemic challenges.

Alongside academic insights, the Integrating Impact Handbook includes practical examples and experiences from across the sector. These examples illustrate how different institutions are exploring the integration of impact considerations within investment decision-making and asset management practices.

An example from practice: the PGGM 3D Equity Mandate

The handbook includes practical examples from participating institutions to illustrate how impact considerations can be approached in different areas of investment practice. One of these examples is PGGM’s 3D Equity Mandate, which is featured in the publication as a case from public equity investing.

The public equity mandate presented in the handbook is one example of how PGGM applies its broader 3D investment approach, in which return, risk and sustainability considerations are assessed in conjunction. The mandate combines two complementary approaches: fundamental investing and systematic investing. Fundamental managers conduct company-level research, including sustainability-related considerations, while systematic strategies use quantitative models to assess the broader investment universe across multiple dimensions.

The handbook also outlines several portfolio developments linked to this approach. According to the case, the number of holdings within the equity portfolio was reduced from around 3,500 to 800 holdings, while the tracking error increased from 1.0% to 1.2%. The publication further refers to changes in Paris alignment and SDG alignment metrics relative to the FTSE All World Index.

Importantly, the handbook describes the 3D investment universe as a mix of different companies. Beyond companies that are Paris and/or SDG aligned already, it allows for improvers and neutrals to strike the optimum balance between return, risk and sustainability. In particular, the example highlights PGGM’s focus on so-called improvers: companies that may not yet demonstrate strong sustainability characteristics, but have credible transition potential for both financial and impact performance.

The Integrating Impact Handbook

Through shared insights and practical examples, the handbook brings together perspectives from financial institutions, academics and public organisations on integrating impact into investment practice and decision-making.

Link to handbook

Want to know more about how PGGM puts 3D investing into practice? Read more about our general vision on 3D investing or view other practical examples in our additional 3D cases.