One of the search criteria for external managers is to be a UN PRI signatory. Furthermore, the factor 'ESG' is an explicit selection criterium during each search process.
Every quarter a manager monitoring takes place, during which the factor 'ESG' is explicitly taken into account. The fund publishes an annual ESG report. In both reports it is evaluated by our fiduciary manager whether the external managers have succesfully implemented the ESG policy of the fund, which is summarized directly below.
The fund applies an exlusion list of companies (no controversial weapons, no tobacco, no coal mines, no human rights violations including violation of good labour conditions), participates in the (collective) engagement of our fiduciary manager and applies voting to its entire equity portfolio (implemented by equity managers both based on voting policy of the equity manager itself). The fund invests in green bonds. The funds invests in a commodities ex agricultural products commodity index, in order to avoid price speculation of food stuffs.
The fund has adopted a best-in-class approach in its equity, EMD and credit portfolios by means of ESG ratings which are translated to ESG benchmarks. These ESG benchmarks have been implemented in the EMD portfolio and will be implemented in the equity and credit portfolios in 2020 Q2. The fund has set out concrete ESG targets with respect to all property investments; all property funds should have at least 4 GRESB stars and a green star awards. Furthermore, the funds invests in renewable energy via its infrastructure investments. A discussion is underway to exclude all fossil investments in this specific investment category. A carbon reduction target is also discussed, but not yet decided upon. The carbon footprint is measured on an annual basis. As a consequence of the adoption of the ESG benchmarks the carbon footprint will decrease by 15% in the developed equity portfolio, the credit portfolio and EMD portfolio and by 40% in the emerging market equity portfolio. During all current search processes aforementioned aspects are already taken into account.