Responsible Investment is an integral part of our investment process
The way APG manages its clients’ pension assets is about more than realizing financial gains. On behalf of our clients we implement the Responsible Investment Policy. Therefor we take account of environmental, social and governance (ESG) factors as an integral part of the investment process in order to:
- contribute to risk-adjusted financial returns
- to demonstrate social responsibility and
- contribute to the integrity of financial markets.
Our Responsible Investment Policy applies across all asset classes, not only capital markets but also alternative investments. For example, we are a leader in Responsible Investment in real estate.
We hold companies to account by using our voting rights at shareholder meetings and by engaging with them to affect positive change. Moreover we actively seek to make investments that provide solutions to sustainable development issues, such as renewable energy, healthcare or microfinance.
We expect companies to act in line with the UN Global Compact Principles. On a regular basis we screen our equity and bond portfolio and start engaging with companies who we think are in breach of these. Where engagement does not lead to the desired change we can decide to divest.
APG does not invest in companies which are involved in the manufacture of landmines, cluster bombs, chemical or biological weapons, or nuclear weapons made in violation of the Nuclear Non-Proliferation Treaty. In addition we do not invest in government bonds by countries subject to an arms embargo by the UN Security Council. The exclusion policy was revised in 2012, and the full exclusion list can be found here.
We actively engage with national and international policymakers to contribute to the development of investment-grade frameworks on e.g. corporate governance issues and climate change. APG is in active dialogue with civil society organisations.