The Corporate Governance Framework 2011 sets out the guiding principles for responsible ownership and how these translate into APG’s detailed voting policy and its implementation, how it engages with investee companies and APG’s approach to shareholder litigation.
Read the Framework
Claudia Kruse, head of Sustainability and Governance at APG explains: “Our updated voting policy reflects the fact that APG exercises voting rights on behalf of its clients worldwide at approximately 4000 companies every year. APG’s voting policy clearly recognises the need for companies to take account of stakeholder interests and sustainability issues, also at board level.”
Under the new voting policy APG also expects that the board considers whether it is appropriate to include in its remuneration policy factors, other than financial ones, that can have an impact on long-term company value, such as sustainability matters, and explains the conclusion that it has reached. All criteria that are part of the remuneration policy must be measurable, relevant to the company and transparent. APG does not support targets linked to rankings in sustainability indexes.
APG is active in the field of corporate governance because it recognises its rights and responsibilities as a shareholder, on behalf of its clients, and the connection between good governance and risk-adjusted returns. Our aim is to enable the pension funds, on whose behalf we invest, to provide an inflation-proof pension at an affordable premium. Our vision is expressed in six investment principles one of which states: “We achieve our returns in a responsible manner through a focus on environment, social policy and good governance. Moreover, by including non-financial factors into the investment process, the risk and return profile of our portfolio can be improved.”
APG discloses its votes at shareholder meetings on an ongoing basis on its website.
APG’s responsible investment policy has three objectives:
- Contribute to risk-adjusted returns
- Demonstrate social responsibility
- Contribute to the integrity of financial markets
This policy is supported by now eight pillars, and includes the recently added pillar: “APG does not invest in sovereign bonds issued by countries that are subject to an arms embargo by the UN Security Council. These embargoes are enforcement measures to condemn violations of international law or human rights.”
For further information
Thijs Steger, press officer
APG Corporate Communication
Tel. (0031)(0)45 579 8100
E-mail thijs.steger@apg.nl
