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APG Asset Management

PRI reporting framework 2018

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Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Describe any reduction in your starting investment universe or other effects.

Per January 2018 we exclude 19 companies that are directly, or through ownership, involved in production of anti-personnel landmines, cluster munitions or nuclear weapons in violation of the NPT, we exclude 3 companies that we consider to be in violation of the UN Global Compact principles.

Specify the percentage reduction (+/- 5%)

%

Select which of these effects followed your ESG integration:

12.2. Additional information.[Optional]


LEI 13. Measurement of financial and ESG outcomes of ESG incorporation

13.1. Indicate whether your organisation measures how your approach to responsible investment in Listed Equity has affected your portfolio’s financial and/or ESG performance.

Describe the impact on:
Describe the impact
Which strategies were analysed?
Funds' ESG performance

13.2. Describe how you are able to determine these outcomes.

We monitor companies against ESG factors and in our fundamental equities strategy we find that giving adequate attention to ESG issues helps us understand companies better and thus helps us achieve a better return/risk trade-off. However we are not able to attribute the ESG impact to financial performance.

As part of our target to reduce the carbon footprint of the Listed Equity portfolio, portfolio managers are allocated a carbon budget and we systematically measure the carbon footprint of the Listed Equity portfolio to monitor performance with respect to the carbon reduction target.

We assess progress against clearly defined engagement objectives and thereby can determine to what extend the companies we engage with act more responsibly.


LEI 14. Examples of ESG issues that affected your investment view / performance

14.1. Provide examples of ESG issues that affected your investment view and/or performance during the reporting year.

ESG issue and explanation

Development of inclusion policy

Impact on investment decision or performance

The inclusion policy applies both to Listed Equity and Fixed Income Corporates. In 2017 we have started with the assessment of the companies in the first sectors. At the end of the year we have completed this assessment for large cap companies in six sectors within Developed Markets and three sectors in Emerging Markets. In total 593 companies have been assessed, and 478 have been assessed as ‘Leader’ and 115 as ‘Laggard’. 22 of those laggards have been assigned as a promising company (positive engagement outlook for becoming a leader), and we will start to engage with those companies  with the aim of improving them.

ESG issue and explanation

Carbon footprint

Impact on investment decision or performance

We measure the carbon footprint of our Listed Equity portfolio, and our clients have established a target to reduce the footprint by 25% in 2020 (base year is 2015). As a result, we take carbon emissions of companies into account in the investment process, and the carbon footprint has decreased sharply (see our Responsible Investment report for the exact figures). As a related result, the exposure to coal related investments has also decreased. 

14.2. Additional information.[Optional]


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