PME's policy is operationalized via four pillars: Exclusion, ESG-integration, Active Ownership (engagement, proxy voting and legal actions) and Thematic/Impact Investments. Our fiduciary manager MN (also a PRI-signatory) has a dedicated Responsible Investment& Governance team (6 members) that is responsible for all these activities.
Exclusion: PME excludes companies that are directly involved in the development, production and/or maintenance of products and/or services that are not compliant with certain treaties and criteria, such as the Convention on cluster ammunition, Chemical Weapons Conventions and Biological and Toxin weapons Convention. In addition international treaties signed by the Dutch Government, and countries which have been sanctioned by the UN and EU are excluded.
ESG integration: PME believes that responsible investment is first and foremost about taking ESG factors into account in all investment decisions and in selection and monitoring of external managers.
PME believes in the co-existence of financial and social return on investments. On one hand it is our aim by conducting engagement on holdings to limit the potential negative impact of business on the environment, people and society and corporate governance (ESG). On the other hand, we also aim to leverage the potential positive impact of business within these same three themes (ESG). The key-objectives for engagement are that companies acquire the ability:
- To fully participate in the low-carbon economy energy transition (E);
- To protect the human and labour rights of workers in the global supply chain (S);
- To reward company executives according to an adequate and balanced remuneration scheme in line with the interests of (minority) shareholders (G).
MN operates on PME's behalf on the basis of a clearly defined engagement policy. The engagement focus lies on
- Significant Dutch holdings;
- Significant holdings with a Global Compact violator status (downside risk);
- Significant holdings that present material ESG-risks within a few key sustainability themes as prioritised by PME (thematic engagement); and
- Significant holdings that present general high material ESG-risks (adhoc/incidents)
Thematic Investments looks at investment opportunities that are attractive both from the return point of view and from an ESG standpoint. As of 2016, PME invests in specific renewable energy PE-fund.