The RI policy has an impact on our overall market allocation within asset classes and has a significant impact with regards to the type of assets.
The Economics and Financial Markets Team, which sets the framework for asset allocations, uses ESG country risk indicators as a quantitative input for its country risk assessments. An ESG country risk monitor is used as a tool to determine the risk level of investments in certain markets and hence the investment requirements.
In 2015 we updated and refined our energy exposure analysis. This analysis was used in 2014 for a stress test of our energy investments against scenarios in which the climate goals are met (IEA 450s). In this analysis we determined the energy exposure across all asset classes and made a breakdown to fuel-type and position in the value chain. The updated analysis of 2015 formed the basis for ABP's position paper on energy and climate published in 2016. We also shared our experience with the Dutch Central Bank that performed a check of the energy exposure within the Dutch Financial sector in 2015, which was published in 2016.
Public version: https://www.abp.nl/images/ABP_on_climate_change.pdf
Technical appendix: https://www.abp.nl/images/ABP_on_climate_change-technical_annex.pdf