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MN

PRI reporting framework 2019

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Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

The investment beliefs of MN can be found via http://www.mn.nl/en/asset-management/investment-beliefs/. 

In the investment beliefs of MN states that:

Investments can produce satisfactory long-term returns only if society develops in a well-balanced way. It is only appropriate, therefore, to look at the social implications of investment advice and decisions and try to prevent any negative social effects and, where possible, to strive to make a positive contribution to society.

 

This is our rationale for our Responsible Investment policy and is effected in MN's ten principles for responsible investment (see SG01.5). These are the basis for our RI-work, meaning the exclusion, ESG-integration, Active Ownership en Impact investment work.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

The responsible investment approach of MN is based on ten leading principles that are derived from the six UN Principles of Responsible Investment:

  1. MN seeks to provide solid and responsible investment returns, whilst being mindful of the social impact of its policies, prevent that its policies give rise to or exacerbate social problems, and, in its capacity as a pension administrator, contribute to resolving social issues. In doing so, MN will have regard to changing social views and standards.
  2. Businesses should develop and implement a strategy which will generate shareholder value in the long term. This implies that the company must generate economic returns, serve its customers and generally, ensure continuity and employment.
  3. Businesses should set up a corporate governance framework that protects the rights of minority shareholders, gives management sufficient powers to implement the company's strategy and policies, and ensures adequate checks and balances, independent supervision, stakeholder engagement and compliance with national legislation and codes.
  4. MN will not directly or indirectly invest in companies and/or other investment vehicles that manufacture products in violation of international treaties signed by the Netherlands.
  5. Businesses should, within their sphere of influence, support and respect the protection of internationally proclaimed human rights and make sure that they are not complicit in human rights abuses.
  6. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining, and endeavour to ban all forms of forced and compulsory labour, child labour, and discrimination in respect of employment and profession.
  7. Businesses should support a precautionary approach to environmental challenges, undertake initiatives to promote greater environmental responsibility and encourage the development and diffusion of environmentally friendly technologies.
  8. Businesses should work against corruption in all its forms, including extortion and bribery.
  9. Businesses should encourage, monitor, and apply these principles to their business partners and subcontractors and accept responsibility for applying these principles across the supply chain.
  10. Businesses should be transparent and report on their activities and progress towards implementing their policies Our policy is further operationalized via four pillars: Exclusion, ESG-integration, Active Ownership (engagement, proxy voting and legal actions) and Thematic/Impact Investments. We have a dedicated Responsible Investment& Governance team (6 members) that is responsible for all these activities.

Exclusion: MN 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: MN believes that responsible investment is first and foremost about taking ESG factors into account in all investment decisions. This means for us integration in our beliefs and strategy, in asset class specific investment strategies in mandates, the selection and monitoring of our external managers and the active investment decisions of our internal asset management.

 

Active ownership:
MN 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 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 our clients (thematic engagement); and
  • Significant holdings that present general high material ESG-risks (adhoc/incidents)

Thematic Investments: Thematic investment looks at investment opportunities that are attractive both from the return point of view and from an ESG standpoint. Examples of initiatives in which MN invests are renewable energy in the property portfolio. The PME Responsible Investment policy can be found through https://www.metalektropensioen.nl/downloads?cms%5Bcm329%5D%5Bdownload%5D=946.

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk

01.6 CC. Indicate the climate-related risks and opportunities that have been identified and factored into the investment strategies and products, within the organisation's investment time horizon.

MN has a climate working group, with members from all investment departments. This working group is involved with every investment strategy that is written or renewed and as such we try to integrate climate risks and opportunities in our investments. Climate is also one of the megatrends, that impacts our long-term investment strategies.

In 2018, MN has conducted a very thorough research into climate risks in our equity portfolio for our clients. This working group also involved members from all investment department and led to an imlementation and research advice to our clients.

MN engages actively on climate risk in all our portfolios, identyfying the highest risks and engaging for a climate-proof corporate strategy.

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

01.8 CC. Indicate the associated timescales linked to these risks and opportunities.

We have an external research party research different climate scenarios in our portfolio. In a sense, we are not so much predicting what will happen, but look into different scenarios that might happen and the way in which we can prepare for them.

01.9 CC. Indicate whether the organisation publicly supports the TCFD?

01.10 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe

MN has a climate working group, with members from all investment departments. This working group is involved with every investment strategy that is written or renewed and as such we try to integrate climate risks and opportunities in our investments. Climate is also one of the megatrends, that impacts our long-term investment strategies.

In 2018, MN has conducted a very thorough research into climate risks in our equity portfolio for our clients. This working group also involved members from all investment department and led to an imlementation and research advice to our clients.

MN engages actively on climate risk in all our portfolios, identyfying the highest risks and engaging for a climate-proof corporate strategy.

1.12 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Potential conflicts of interest are reported to our Compliance department. Compliance will give guidance on how to proceed.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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