If you select any `Other` option(s), specify
Compliance with our policies, e.g. on exclusion
Discuss potential exclusions as suggested by the external manager.
We require our external manager of our developed market alternative equity portfolio to undertake carbon portfolio monitoring.
05.3.
Provide additional information relevant to your organisation`s monitoring processes of external managers.
[OPTIONAL]
Private Equity: During the investment period of the fund, PGGM PE actively engages with the GPs to encourage improvement regarding ESG integration. The PE team monitors improvements in the ESG integration at our GPs and incidents present in the portfolio. Fund monitoring meetings, where GP engagement as well as other topics regarding the fund investments are discussed, are held twice a year. Co-investment monitoring meetings are held more frequently at four times per year. Following each meeting, a handful of funds and co-investments in the portfolio are added to an ESG engagement list based on the outcome of our previously described ESG Integration Assessment and the country/sector risks identified in the portfolio. Specific focus is placed on driving improvements, primarily through discussion with the respective GPsProperty: A fund’s ESG performance is primarily monitored by using the GRESB survey. Every year funds have to fill in an extensive survey that covers all ESG aspects such as: management – measures the fund’s strategy and leadership management, policies and processes, risk management and stakeholder engagement approach. Performance – this measures a fund’s performance, comprising of information collected at both the asset and portfolio level. This component includes information on performance indicators such as GHG emissions, energy consumption, waste and water consumption. Lastly, a fund’s efforts to address ESG issues during the design, construction and renovation of buildings. Besides that, ESG related issues raised throughout the year are handled by the responsible investment managers, as they are in close contact with the fund’s representatives and know what is happening on the ground.
Regarding Infrastructure: ESG performance of managers is periodically monitored. Part of PGGM’s periodic rating of investment performance and fund manager’s performance is the review of the ESG performance. Interactions with fund managers on ESG policy, targets and reporting are taking place. In case of any major incidents that we come aware of via fund managers or via third parties, additional interactions are undertaken on an ad-hoc basis.