APG engages to assure that its portfolio companies effectively implement an appropriate long-term corporate strategy and deliver returns to their shareholders, while respecting their other stakeholders. APG expects its portfolio companies to demonstrate responsible business practices and policies. Therefore, APG enters into dialogue with companies in order to enhance and preserve the value of our investments, and to improve sustainability and corporate governance performance. In meetings with companies we make our expectations on sustainability and shareholder rights clear. To emphasize our message we often cooperate with other investors in this area. Our approach to engagement includes:
- Intensive engagement with companies that are potentially in violation of the UN Global Compact with clear objectives, based on structured processes and monitored by our Responsible Investment Committee;
- Engagement based on priority themes that we define at the beginning of the year (e.g. climate change, labour relations, remuneration, board composition);
- (Joint) engagement by GRIG and/ or portfolio managers on ESG issues that contribute to ESG integration;
- Ad-hoc engagement based on issues that arise throughout the year;
- Strategy related engagement contributing to better risk/return profiles; and
- Engagement with external managers who manage long term portfolios on our behalf.