ACTIAM stimulates companies to prepare for the ongoing transitions, operate within the planetary boundaries, respecting the social foundations. All companies are evaluated on its steps to move towards the so-called safe and just space. Accordingly, the active funds incorporate all three strategies. First, a screening is conducted based on ACTIAM's Sustainable Investment policy. Companies in breach of the FIP or non-adaptive at any material business drivers are excluded from the investment universe (https://www.actiam.com/siteassets/4_verantwoord/documenten/en/ri_overview_exclusions_companies.pdf)
Secondly, we add a thematic overlay based on material business drivers, such as water, land and social capital development that impact several sustainability issues. For this, we consider to what extent companies have the capabilities of adapting to the ongoing sustainability transitions. Companies that are considered positive contributors, such as responsible renewable energy producers, are positively selected by upgrading their ESG score. Engagements can be set up in case these companies deliver a sustainable core product but are lagging in their ESG score due to, for example, a relatively low level of disclosure. The ESG team and the Equity portfolio management team are jointly responsible for managing the integrated strategy. For more, please see following questions in this report.