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APG Asset Management

PRI reporting framework 2020

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Pre-Investment (Selection)

INF 05. Incorporating ESG issues when selecting investments

05.1. Indicate if your organisation typically incorporates ESG issues when selecting infrastructure investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in infrastructure investment selection.

At the outset of any new investment, APG ensures that ESG policies and behaviours are assessed and reviewed. The managers of all new investments under consideration are asked to fill out the APG Due Diligence Questionnaire, which includes detailed ESG questions. These results  (in combination with a range of other inputs that include additional information requests, interviews, materiality matrices, ESG reputational risk data platforms, climate risk transition and physical, etc), are then assessed in detail by the GRIG (Global Responsible Investment & Governance) team specialist and form the basis for their mandatory and independent signoffs that are presented to the global Committee for Investment Proposals (CIP) prior to investment. Participation in the GRESB Infrastructure survey is mandatory for all new investments in this asset class.

INF 06. ESG advice and research when selecting investments

06.1. Indicate whether your organisation typically uses ESG advice and research sourced internally and/or externally when incorporating ESG issues into the infrastructure investment selection process.

          Members of GRIG team
          GRESB Infrastructure and sometimes the potential investment requires a country analysis (for non-OECD countries). For country risk we use Sustainalytics Country ESG scores.

06.2. Additional information. [Optional]

The potential investment could require 3rd party assessment on environmental (e.g. land contamination) and social issues (e.g. health and safety standards; community engagement; indigenous people; human rights).

INF 07. Examples of ESG issues in investment selection process

07.1. Indicate which E, S and/or G issues are typically considered by your organisation in the investment selection process and list up to three typical examples per issue.

ESG issues

List up to three typical examples of environmental issues

          Environmental permits, feedback of the regulator, soil quality / pollution, incidents.
          Existence and functioning Environmental Management Systems (e.g. ISO 14001)
          EHS Guidelines from IFC which are available for various infra sub-sectors

List up to three typical examples of social issues

          Employee policies including safe working conditions and labor relations, including in supply chain management and sustainable procurement/responsible contractor policies
          EHS Guidelines from IFC which are available for various infra sub-sectors
          Community engagement program in place

List up to three typical examples of governance issues

          Weak disclosure obligations, audit rights and information rights
          Anti-bribery and corruption policies
          Blocking rights (in the Advisory Board) with respect to certain activities

07.2. Additional information. [Optional]

INF 08. Types of ESG information considered in investment selection

08.1. Indicate what type of ESG information your organisation typically considers during your infrastructure investment selection process.

          IFC Environmental, Health & Safety guidelines

08.2. Additional information.

APG is a founding member of GRESB Infrastructure, a tool for systematic assessment, objective scoring and peer benchmarking of the ESG performance of infrastructure investments. Moving forward the aim is that GRESB will become more of a “one-stop” ESG data center for private markets fund managers and assets (with 3rd party verification).

INF 09. ESG issues impact in selection process

09.1. Indicate if ESG issues impacted your infrastructure investment selection processes during the reporting year.

09.2. Indicate how ESG issues impacted your infrastructure investment deal structuring processes during the reporting year.

09.3. Additional information.