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APG Asset Management

PRI reporting framework 2018

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Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort

11.1. Indicate the amount of your listed equities portfolio with which your organisation engaged during the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion (to the nearest 5%)
Specify the basis on which this percentage is calculated

Individual / Internal staff engagements

287 Number of companies engaged
10 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

Collaborative engagements

45
1 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. Indicate the proportion of engagements that involved multiple, substantive and detailed discussions or interactions with a company during the reporting year relating to ESG issue.

Type of engagement

% Comprehensive engagements

 

 

Individual / Internal staff engagements

 

 

Collaborative engagements

11.3. Indicate the percentage of your collaborative engagements for which you were a leading organisation during the reporting year.

Type of engagement

% Leading role

  Collaborative engagements

11.5. Additional information. [Optional]

The numbers provided indicate the number of companies engaged with. In many instances, we engaged on multiple issues and themes within the same year. Companies where we had collaborative engagement activities are only included in the collaborative number, although we often also engaged separately with these companies on other topics.


LEA 12. Engagement methods

12.1. Indicate which of the following your engagement involved.

12.2. Additional information. [Optional]


LEA 13. Companies changing practices / behaviour following engagement (Private)


LEA 14. Examples of ESG engagements

14.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

ESG factors
ESG issue
          Executive Remuneration
        
Conducted by
Objectives
  • Inclusion of a return on investments performance measure in the executive remuneration plan
  • Revenues performance measure corrected for mergers and acquisitions
  • Larger shareholding requirements for executives
Scope and Process

As one of the largest shareholders of the company, we were consulted about proposed changes and expressed our concerns about the use and removal of certain performance indicators which in our view were not aligned with the strategic objectives of the company. We were pleased to learn from a response letter we received from the company that the remuneration committee followed our recommendations by making some specific amendments to the original proposal.

Outcomes

In line with our requests;

  • the performance measure on the return on the company’s capital spent on investments was retained,
  • the company’s revenues will be corrected for mergers and acquisitions, and
  • the shareholding requirements for management were increased
ESG factors
ESG issue
          1. Lack of independence of lead independent director
2. Lack of board refreshment
3. No resignation policy
4. No majority voting standard
5. Staggered board
        
Conducted by
Objectives
  1. Strengthening of the lead independent role and the appointment of a different board member to that role,
  2. adoption of a majority voting standard,
  3. adoption of a resignation policy,
  4. more board refreshment, and
  5. annual director elections for all directors
Scope and Process

We had a few years of intense engagement with a US real estate company, including face-to-face meetings, calls and letters in which we shared our concerns about the company’s governance. 

Outcomes

The company;

  1. strengthened the lead independent role and appointed a different board member to that role,
  2. adopted a majority voting standard,
  3. adopted a resignation policy,
  4. appointed a new independent director, and
  5. de-staggered the board
ESG factors
ESG issue
          Insufficient reporting on 2°C scenario, energy transition and climate change.
        
Conducted by
Objectives

Co-file shareholder resolutions at US energy companies’ AGMs requesting the companies to be transparent about how they take into account climate change and changes in technology in the strategy and capital allocation.

Scope and Process

Together with a group of other investors, we co-filed shareholders resolution at a US energy company.

Outcomes

The shareholder resolution received 62% support from shareholders at the AGM and was one of the first climate related shareholder resolutions to ever receive majority support.

14.2. Additional information. [Optional]


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