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AP4

PRI reporting framework 2020

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Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          Head of Strategy & Sustainability
        

Other description (1)

          Corporate Governance professionals
        

Other description (2)

          Senior Sustainability Manager
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

The Portfolio Managers has the responsibility to find and to implement ESG ideas and themes in their portfolios. Portfolio management teams are supported by a Sustainability staff function. The equities team as dedicated corporate governance professionals within the team. Corporate governance professionals are responsible for voting at AGMs of the holdings of the equity portfolio. Corporate governance also leads the work regarding ESG-engagement with companies such as the participation in Nomination Committees and engagement at specific markets where the funds engagement in the Japanese market. Corporate governance leads the work regarding resolutions to AGMs. Persons from Corporate Governance and the sustainability staff are also the fund's delegates on the Council on Ethics.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

8 Number

07.4. Additional information. [Optional]

AP4 integrates sustainability into all investment processes. Responsible investment functions are thus not dedicated to a few ESG staff. In all, AP4 has 19 employeees with ESG experience and who devote partial or significant time to sustainability factors within tha management of the portfolio. Some persons work with sustainability full time and others work part time with ESG or as part of the investment processes. In total, this sums up to 8 FTEs.


SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Other Chief-level staff or heads of departments

Portfolio managers

Dedicated responsible investment staff

External managers or service providers

Other role, specify (1)

          Corporate Governance professionals
        

Other role, specify (2)

          Senior Sustainability Manager
        

07.6 CC. For board-level roles that have climate-related issue oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

AP4’s operations are governed by the AP Funds Act. In this act and its drafting work it is stipulated that asset management shall be conducted in an exemplary manner through responsible investments and responsible ownership, and that particular emphasis shall be given to how sustainable development can be promoted without compromising on the overarching risk and return targets. AP4’s board of directors has adopted a Sustainability Policy that describes the work on integrating sustainability in asset management, where Climate & Environment is one of AP4’s two focus areas. Sustainability is a key investment belief in AP4’s investment philosophy. 

07.7 CC. For management-level roles that assess and manage climate-related issues, provide further information on the structure and processes involved.

The Board has assigned the CEO with the task of continuously assessing and addressing climate-related issues in the asset management. The CEO, the heads of the respective asset management units and the head of Strategy & Sustainability are responsible for ensuring that sustainability is integrated in all of AP4’s investment processes.

07.8 CC. Indicate how your organisation engages external investment managers and/or service providers on the TCFD recommendations and their implementation.


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

08.2. Describe any activities undertaken during the reporting year to develop and maintain Board members’ skills and knowledge in relation to responsible investment.

Internal and external presenters have addressed climate related topics at the board meetings, for example presentations on climate change, voting, climate change and economic control models, climate scenario analysis thematic sustainability trends.

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other C-level staff or head of department

          Head of Strategy & Sustainability
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Dedicated responsible investment staff

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other role (1) [from SG 07]

          Corporate Governance professionals
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other role (2) [from SG 07]

          Senior Sustainability Manager
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

We manage sustainibility decisions as active decisions which affect active return and therefore also variable compensation to portfoio managers, corporate governance ans sustainability professional. Due to state regulation, CEO and hedas of entities may not receive variable compensation. However, sustainability factors are included in the annual performance assessments as well as when setting wages.

08.4. Describe the level of experience board members/trustees/chief-level staff have with incorporating ESG factors into investment decision-making processes.

          Background and experience varies from person to person, but many of board and investment staff have addressed and worked with ESG factors continuously for decades.
        

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