Global Pension Transparency Benchmarking

Evidence That Measurement Drives Improvement

The Global Pension Transparency Benchmark (GPTB) initiative shows how well-designed benchmarking protocols can lead to measurable improvements in pension fund transparency and performance.

In an article published in his newsletter "The Ambachtsheer Letter" in December 2024, Keith Ambachtsheer, founder of CEM Benchmarking, explores the impact of the Global Pension Transparency Benchmark (GPTB) initiative. Launched by CEM Benchmarking and TOP1000FUNDS yearly since 2021, the GPTB ranks the five largest pension organizations in 15 countries based on the quality of their public disclosures. This initiative evaluates four key factors: governance and organization, performance, costs, and responsible investing, using 156 questions and analyzing 11,700 data points.

Ambachtsheer emphasizes the importance of transparency and accountability, noting that greater transparency leads to improved decision-making, stakeholder relations, and organizational outcomes. The article delves into the four factors assessed by the GPTB, highlighting the specific criteria and questions used to evaluate each factor.

The GPTB's findings over the past three years reveal significant improvements in transparency scores across the 75 pension organizations studied. The overall GPTB scores increased from an average of 55 in 2022 to 63 in 2024, with notable improvements in governance and responsible investing disclosures. The article also examines the performance of individual countries, with Canada, Australia, and the Netherlands showing the most significant improvements.

Ambachtsheer concludes by reflecting on the origins of CEM Benchmarking and its role in driving transparency and performance improvements in the pension industry. He underscores the value of well-designed benchmarking protocols in motivating actions that lead to better outcomes.

For a deeper dive into the findings and insights from the GPTB initiative, read the full article by Keith Ambachtsheer here.