Dutch pension funds invested in company behind DigiD, face scrutiny over sale to US firm

Dutch pension funds ABP and Pensioenfonds Zorg en Welzijn (PFZW), which collectively manage 2.75 million working members and over 800 billion euros, have invested in Solvinity, the company responsible for maintaining the Netherlands' DigiD digital identity system.

This investment came to light as the Dutch state secretary for Digital Economy and Sovereignty, Willemijn Aerdts, blocked the sale of Solvinity to the U.S. company Kyndryl two months ago. The sale was prohibited to "protect the public interest," given that DigiD is used by citizens to exchange highly confidential information with various government bodies, tax authorities, and healthcare providers.

The Dutch parliament had previously expressed near-unanimous opposition to Solvinity's sale to a U.S. competitor, citing concerns that U.S. authorities could secretly request DigiD data or block access. Despite this, Solvinity and its owner, Vitruvian Partners, have challenged the state secretary's decision, though their request to temporarily suspend the ban was denied by a preliminary relief judge.

ABP and PFZW, which publicly advocate for socially responsible investing, including commitments to human rights and good governance, face scrutiny for their investment in Solvinity and their apparent silence on the sale. Questions are being raised about why these pension funds have not opposed the sale, ignored the democratic will of the government and parliament, or urged the British investment fund against legal action. Their stance appears to contradict their stated goals of preventing negative investment impacts and contributing positively to the world.

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We want to prevent negative effects of our investments as much as possible and, where possible, make a positive contribution to the world around us.