Responsible Investment Report 2016: performing best across a range of measures relating to risks of climate change.

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.

Social responsibility

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.

Eight principles for responsible investment

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 for they can demonstrate their social responsibility and integrity and assure a long term good investment. The responsible Investment Policy applies across all asset classes.

1. Responsible investment is an integral part of the investment process at APG.
We take shareholder rights and environmental and social factors into consideration in our investment decisions. Research in the fields of sustainability and shareholder rights can lead to a decision to decline a certain investment offer, to sell the investment, or to increase or reduce the size of the investment.

2. APG enters into dialogue with companies in order to achieve sustainability and good corporate governance.
In meetings with companies we make our standards on sustainability and shareholder rights clear. To emphasize our message, we often cooperate with other investors in this area.

3. APG expects companies to act with respect for the principles of the UN Global Compact, and we will sell the shares we hold if the dialogue does not lead to improvement. Moreover, APG does not invest in products which are banned under Dutch law or international regulations.
This means that we do not invest in companies that are directly involved in the manufacture of landmines, cluster ammunition and their firing systems, or chemical or biological weapons. We also rule out products or services widely regarded as objectionable in the Netherlands. The minimum standards for companies in the fields of human rights, labor standards, the environment and corruption are specified in the UN Global Compact.

4. APG does not invest in sovereign bonds issued by countries that are subject to an arms embargo by the UN Security Council.
An UN Security Council arms embargo indicates that there is serious concern about a country's human rights situation.

5. APG actively exercises our rights as shareholder.
We vote at the shareholders’ meetings of the companies in which we invest. We publish our voting behavior and provide explanations of how we voted.

6. APG strongly advocates robust Dutch and international laws and regulations aimed at promoting sustainability and good corporate governance.
We regularly discuss sustainability and shareholder rights with legislators and regulatory bodies. We also contribute to the development of standards aimed at improving the integrity of the financial markets over the long term.

7. APG actively looks for attractive investments that promote sustainability.
APG invests in alternative energy, clean technologies and micro loans, and is always looking for new opportunities to invest in such contributions to sustainability.

8. APG actively propagates our responsible investment policy in order to promote sustainability and corporate governance.
We cooperate with other asset managers and pension funds across the world in order to increase the effect of our responsible investment policy for our clients. We are active in various Dutch and international forms of cooperation. And we communicate extensively about our activities.

Engaged shareowner

In the vote disclosure tool we disclose in detail how we, on behalf of our clients, implement our responsible investment policy. APG is transparent about this and accountable about how it fulfills its role as engaged shareowner and how it exercises its shareholder rights on behalf of its clients.

Please fill in a company name or a ticker symbol in the box. A ticker is an arrangement of characters (usually letters) representing a particular security listed on an exchange. Every listed security has a unique ticker symbol. For example PHI for Philips.