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PRI reporting framework 2020

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You are in Direct - Listed Equity Incorporation » Outputs and outcomes

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.

We screen and reduce the investable universe based on the Council on Ethics' review of violation against international conventions. We also reduce the investable universe by for example companies active within nuclear weapons, tobacco, thermal coal, oil sand, and some company-specific exclusions .

Specify the percentage reduction (+/- 5%)

5 %

Describe any alteration to your investment universe or other effects.

We do not invest in companies where thermal coal or oil sand represents 20 percent or more of turnover. We also apply low-carbon strategies which reduce climate risk exposure across all sectors.

12.2. Additional information.[Optional]

LEI 13. Examples of ESG issues that affected your investment view / performance

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

ESG factor and explanation

Portfolios that reduce climate risk in its equity investments by reducing exposure to companies with relatively high carbon emissions and/or fossil fuel reserves.

ESG incorporation strategy applied Screening|Thematic|Integration

Impact on investment decision or performance

Carbon footprint reducing strategies has had a positiv impact on performance.

ESG factor and explanation

AP4 has invested in a Japanese strategic investments with a focus on corporate governance, TMAM GO Japan Engagement Fund (JEF) and GO Japan Engagement Consortium. JEF owns shares in about 12-15 Japanese companies with a specific identified potential for increased shareholder value. They work according to a structured process of active governance, which enables monitoring and transparency.

AP4 is also engaged in the GO Japan Engagement Consortium (JEC). Other members of the consortium are TMAM and the English pension funds Railpen (Railway Pension Fund) and USS (University Superannuation Scheme). The consortium conducts, via GO - Japan and TMAM, ownership dialogues with 15-20 major Japanese companies. The work is principally structured in the same way as for JEF, but in contacts with companies it is the names of the consortium members that are presented.

ESG incorporation strategy applied

ESG incorporation strategy applied Integration

Impact on investment decision or performance

The Japanese strategies with a focus on active corporate governance have performed well and made a positive contribution to both total return and active return.

ESG factor and explanation

The Fund is invested in RobecoSAMs Gender Fund, a fund that invest in companies that score high on ESG and on gender indexes.

ESG incorporation strategy applied Thematic

Impact on investment decision or performance

ESG factor and explanation

Transition to EVs

ESG incorporation strategy applied Thematic

Impact on investment decision or performance

13.2. Additional information.[Optional]