RI is fully embedded in APG's Governance structure. In 2016 the CIO of APG Asset Management chaired the Responsible Investment Committee (RIC), which also includes the MD of the Global Responsible Investment & Governance (GRIG) team, the CEO, and two other board members responsible for Clients and Risk respectively, as well as the MD Legal, Tax and Regulatory Affairs. The RIC oversees the implementation of the RI policy and meets on a regular basis. It approves for examples all relevant RI guidelines and implementation policies. Certain matters will be escalated to the full APG AM Board.
Furthermore, the MD of GRIG team reports directly to the CIO. In line with the Strategic Investment Plan (STIP), all so-called building blocks (investments in all different asset classes) have a plan in place on how to integrate ESG since the end of 2010. This reflects the remit of our Responsible Investment Policy which extends to all asset classes.
ESG has been formally integrated into the investment proposal approval process. The Committee on Investment Proposals (CIP) has full delegated authority from the Board of Directors of APG Asset Management to make required decisions to assure that all funds are solidly invested, with due observance of liquidity, return, risk diversification requirements, costs, potential reputational risks, and meet the prudent person principles, whilst ensuring that the quality and transparency of the investment process is in place.
All new alternative investments and some listed investments require a mandatory ESG sign-off. Thereby the GRIG team, which consists of thirteen people, can engage prior to making certain investments and affect change from the outset by, for example, asking companies or external managers to commit to responsible investment practices and join sector initiatives. RI policy and reporting requirements are enshrined in the contracts with our external managers and managers of direct investments.