PGGM’s journey towards ‘net zero’

PGGM is committed to reducing the climate impact of its own operations. In doing so, we contribute to the goals of the Paris Agreement and its 1.5°C target, as well as to SDG 13: Climate Action. Our net zero ambition is part of PGGM’s broader sustainability agenda. 

PGGM’s net zero ambition for its operations 

PGGM aims to achieve net zero emissions from its operations by 2050. This means that, on balance, PGGM’s operations will no longer add CO₂ and other greenhouse gases to the atmosphere. Interim reduction targets have been set for 2030. We follow the international Greenhouse Gas Protocol (GHG Protocol) standard. 

The GHG Protocol distinguishes between three scopes. 

Scope 1 covers all direct emissions from PGGM’s operations. For our office, these emissions primarily relate to the use of natural gas for heating and other building climate systems. We aim to achieve net zero Scope 1 emissions by 2030. 

Scope 2 covers indirect emissions from purchased energy. For PGGM, this includes electricity. Our ambition was to achieve net zero Scope 2 emissions by 2030. However, due to grid congestion and our planned move to Utrecht in 2028, where we will rely on district heating that is currently still generated using fossil fuels, this target is unfortunately no longer achievable. 

Nevertheless, we remain fully committed to minimising our energy consumption. Our new office, for example, must meet the Paris Proof standard for energy use, with a maximum energy consumption of 70 kWh per m² per year, as defined by the Dutch Green Building Council. As soon as our energy suppliers are able to provide fully fossil-free energy, we will switch to it. 

Scope 3 covers all other indirect emissions across our value chain, including business travel, employee commuting, and the products and services we purchase. We aim to reduce these emissions by 55% by 2030 and achieve net zero Scope 3 emissions by 2050. This goes hand in hand with our existing plans to make our accommodation more sustainable and our current mobility targets. 

PGGM and PFZW taking steps together 

Our net zero policy is being developed in close collaboration with Pensioenfonds Zorg en Welzijn (PFZW), which has fully outsourced its services to PGGM. In April 2021, PFZW signed the Paris Aligned Investment Initiative (PAII), committing to reducing emissions associated with its investments in line with the Paris Agreement. Its commitment to the PAII also includes reducing Scope 1 and Scope 2 emissions from PFZW’s operations. 

As Willem Jan Brinkman, Vice-Chair of PGGM’s Executive Board, explains: “PGGM is an organisation with an important role to play in society. Together with our largest client, PFZW, we are taking significant steps to make both the investment portfolio and our operations more sustainable. We believe it is our responsibility to apply internally the same standards that we expect of the market. That is why we are taking steps towards net zero operations at PGGM.” 

Net zero, the Paris Agreement and 1.5°C 

The term net zero can be used and interpreted in different ways. In scientific terms, net zero CO₂ emissions are achieved when the amount of CO₂ added to the atmosphere is balanced by the amount removed from it. In other words, any CO₂ released into the atmosphere must ultimately be balanced by CO₂ removal. 

Under the Paris Agreement, 196 countries agreed to pursue efforts to limit the increase in global average temperature to 1.5°C. 

The 1.5°C pathway reflects the level of global warming that the international community seeks to limit warming to in order to reduce the risks and impacts of climate change. To limit global temperature rise, there is a finite cumulative carbon budget. Global CO₂ emissions need to decline substantially by 2030 on the pathway towards net zero emissions by 2050. 

The European Union has set its own binding target of reducing net greenhouse gas emissions by at least 55% by 2030 compared with 1990 levels, as part of its Fit for 55 package.