RI is fully embedded in APG's Governance structure. In 2019 the CIO of APG Asset Management chaired the Investment Committee (IC), which also includes the MD of the Global Responsible Investment & Governance (GRIG) team, the CEO, and two other board members responsible for Fiduciary Management and Risk & Finance respectively, as well as the MD Legal, Tax and Regulatory Affairs and the MD Asset Allocation & Overlay. The IC oversees and approves various matters related to the investment framework, which includes the implementation of Responsible Investment. Certain matters can be escalated to the full APG AM Board.
Furthermore, the MD of GRIG team reports directly to the CIO. In line with the Strategic Investment Plan (STIP), all different investment teams have a plan in place on how to integrate ESG since the end of 2010. This reflects the remit of our Responsible Investment Policy which extends to all asset classes.
ESG has been formally integrated into the investment proposal approval process. The Committee on Investment Proposals (CIP, part of the IC) has full delegated authority from the Board of Directors of APG Asset Management to make required decisions to assure that all funds are solidly invested, with due observance of liquidity, return, risk diversification requirements, costs, potential reputational risks, and meet the prudent person principles, whilst ensuring that the quality and transparency of the investment process is in place.
All new alternative investments and some listed investments require a mandatory ESG sign-off. Thereby the GRIG team, which consists of eighteen people, can engage prior to making certain investments and affect change from the outset by, for example, asking companies or external managers to commit to responsible investment practices and join sector initiatives. RI policy and reporting requirements are enshrined in the contracts with our external managers and managers of direct investments.
Part of APG Asset Management is the Fiduciary Management (FM) department with the objective to provide pension fund clients with independent advice and keep oversight on the appropriate implementation of client mandates and assignments. The FM department appointed a Fiduciary Manager Responsible Investments (FMRI) who is the primary contact for clients concerning their Responsible Investment policies. This adds additional 2.5 FTE in the number of dedicated RI staff at APG.