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ACTIAM

PRI reporting framework 2020

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Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

The ACTIAM ESG Committee meets at least once every quarter. In this meeting, the Committee reviews proposals for updated and new policies, the progress of engagement cases and reviews the investment universe screening. Investor statements and official letters are also among the standard agenda items of these meetings.
Besides the quaterly regular ESG Committee meetings, in case of necessity, a fast track procedure is developed for exceptional cases and/or policies to be approved for which direct action is required. For example, the approval/rejection of ESG Research advice in structured projects with tight deadlines. 


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Execution of marketing and communication plan, to which the ESG department is a large contributor.
        

Progress achieved

To improve communication about ESG within the organisation, ACTIAM performs, among others:

·       Continued ESG communication on the intranet (incl. mother company)

·       Speak at (public) conferences/seminars on responsible investment, impact investing, green bonds and other ESG topics

·       Publish articles in newspapers and magazines on ESG topics

·       Presented about ESG in quarterly employee meetings

·       Present ESG in introduction meetings for new employees (incl. mother company)

·       Communicated about joint initiatives, such as PCAF

·       Communicated about investor statements

·       Write thought leadership papers

·       Held combined ESG and Portfolio Management meetings about ESG

·       Presented and shared the revised Sustainability Policy and Dashboard to employees

Key performance indicator

          Implementing the Active Ownership Policy is one of the key KPIs for the ESG team.
        

Progress achieved

Implementing the Active Ownership Policy is one of the key KPIs for the ESG team: the goal is to revise the policy, implement a dashboard to track and communicate progress, and start a new engagement initiative. 

The engagement progress is measured in milestones and objectives, and reported in the quarterly ESG reports as well as the annual report. The progress and current status of the engagements is discussed in the quarterly ACTIAM ESG Committee meetings. We have developed a database for tracking engagements and progress and have developed an internal database, which connects engagement progress with financial information, such as stock performance. This information is also made available to clients through a dashboard.  Since 2016, we work with an external provider to conduct a share of the engagements, in order to increase the amount of engagements conducted as well as their impact.

Key performance indicator

          Portfolios' ESG integration, a KPI applied already for years, applicable for both ESG team and Portfolio Management. See details below.
        

Progress achieved

A minimum ESG Score applies to all portfolios.
ESG scores were implemented in ACTIAM's systems and, where applicable, mandates with clients were adjusted. Some portfolios need to achieve an ESG score which is at least higher than the ESG score of the benchmark. Furthermore, for some strategies, a minimum ESG Score per company is required in order to be investable. 

          Improve sustainable performance information for clients.
        

Key performance indicator

          Implement and launch client-ready ESG dashboard with information on sustainable performance on investments.
        

Progress achieved

In 2019 ACTIAM has launched the first interactive online ESG dashboard for its clients. The dashboard contains customized information on the sustainable and financial performance of clients’ investments. In this way, clients gain integrated insights in, amongst others, the ESG risks, carbon footprint, water footprint, green bonds and SDG contributions associated with their investments. In this way, the dashboard allows for further integration of sustainable and financial performance in investment strategies and decisions. 

other description (2)

          ACTIAM as a responsible investment leader for its clients.
        

Key performance indicator

          The ranks of VIVAT, parent company of the clients Zwitserleven and Reaal in the main Dutch benchmarks for responsible investment. See below
        

Progress achieved

Since 2017, the clients remain in the top three among the main Dutch benchmarks for RI: Fair Insurance Guide (EVW benchmark, 2020, https://eerlijkegeldwijzer.nl/verzekeringswijzer/); and Benchmark Responsible Investments by Insurance Companies in the Netherlands (VBDO, 2019, https://www.vbdo.nl/en/2019/10/benchmark-responsible-investment-by-insurance-companies-in-the-netherlands-2019/):
-        Higher scores on 8 themes/sectors in EVW benchmark compared to assessment in 2018

-        Maintained overall score in VBDO benchmark compared to last assessment in 2017 (4.1 out of 5)

other description (3)

          Impact measurement and policy setting
        

Key performance indicator

          Improved impact measurement and target setting of investments; development of new responsible investment policies where applicable.
        

Progress achieved

  •  The sustianable investment policy of ACTIAM was renewed in 2019, incorporating the concept of planetary boundaries in the decision making for the whole universe
  • Carbon footprint of investments measured
  • Targets for carbon reduction formulated
  • Water footprint of investments measured
  • Targets for water, land and carbon renewed
  • Development of new RI policies

Financial performance of investments

Key performance indicator

          Performance of several internally managed active funds and active equity fund is a standard KPI for the ESG and portfolio management team.
        

Progress achieved

2019 portfolio performance was 28,47%, and the benchmark performance 26,05% (NAV-based performance).

ESG characteristics of investments

Key performance indicator

          For specific active funds (equity and FI), the ESG score of the portfolio needs to be as high as possible, at least higher than benchmark.
        

Progress achieved

The ESG Score of the portfolio is measured against the benchmark.

 

Key performance indicator

          Improve the ESG country scores applied.
        

Progress achieved

Next to the ethical aspects that have always been part of the ESG Country score, as of 2019 we have also  included pressure on and management of important natural resources such as energy, water and forests in the new country ESG score.
 

Key performance indicator

          -30% of carbon footprint in 2030 (compared to 2010).
        

Progress achieved

We measure the carbon footprint and carbon intensity of all investment funds since 2010. Based on that, we can conclude that in 2019 we achieved a 36% reduction in carbon intensity compared to 2010.

Other description (1)

          ESG Target on water
        

Key performance indicator

          Water-neutral in 2030
        

Progress achieved

A water-neutral portfolio means that we aim for reduced water use in areas where water is scarce and for better access to water and better water quality. Circular water solutions and improved infrastructure offer investment opportunities. ACTIAM invests in, for example, green bonds issued by banks. They finance municipalities that want to improve the water recycling and wastewater management facilities. There are many challenges before these goals can be realised, but by contributing to better data quality and collaborations with other parties, we will be achieving this goal.

Other description (2)

          ESG target on land
        

Key performance indicator

          No deforestation and no biodiversity loss by 2030
        

Progress achieved

Deforestation and inappropriate forms of land use not only contribute to climate change through CO2 emmissions, but also lead to a reduction of available ecosystem services, biodiversity, food supplies and others. For this reason, ACTIAM engages with companies to enhance oversight and mitigation of deforestation risks in their whole supply chains, from producers to retailers.

Other description (3)

          Planetary boundaries
        

Key performance indicator

          Align investment to the theory that humanity needs to operate within nine essential ecological and societal boundaries.
        

Progress achieved

In 2019, ACTIAM has upgraded its investment policy, translating the planetary boundaries into parameters for building the investment portfolios, and also into parameters on company level. For seven material business drivers (fossil fuel use, water use, land use, chemicals use, social capital management, human capital management and organisational behaviour) it is assessed to what extent companies change their behaviour to operate within the safe and just space. Based on this assessment, companies are categorised, indicating whether a company is deemed non-adaptive, at-risk or moving towards sustainable behaviour. Their categorisation determines if the company can be part of ACTIAM's investment universe and, furthermore, which types of funds companies fit in.

Other activities

Key performance indicator

          Partnerships on sever focus themes (climate, water, land)
        

Progress achieved

​Climate:

- Partnership Carbon Accounting Financials
- Climate working group on Dutch Central Bank's platform
- Collaborative initiatives with other investors and through PRI

Water:

- CERES investor water hub
- Steering Committee PRI Water risk
- Collaborative initiatives with other investors and through PRI

Land:

- Partnership FSC
- Biodiversity working group on Dutch Central Bank’s platform
- Community of Practice Financial Institutions and Natural Capital (CoP Finc)
- European Community of Practice Finance @ Biodiversity
- Collaborative initiatives with other investors and through PRI

Other:

- DNB Platform voor Duurzaam Financiering (Coalition from Dutch Central Bank on Sustainably Finance)

Key performance indicator

          Maintain and improve communication through quarterly ESG reports and communication to clients.
        

Progress achieved

  • ·       Maintain communication to clients about RI cases (directly and support in communication for clients' clients).

    ·       Shared engagement experiences through various cases in articles and magazines

    ·       Added new insights into portfolio, such as amount of companies with climate policies vs. the benchmark

    ·       Added insight into companies with highest and lowest ESG scores

    ·       Actively used website and social media for ESG examples

     

06.2. Additional information.


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