Stichting Pensioenfonds ABP. An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

Transcription

1 RI TRANSPARENCY REPOR T Stichting Pensioenfonds ABP An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

2 About this report The PRI Reporting Framework is a key step in the journey towards building a common language and industry standard for reporting responsible investment (RI) activities. This RI Transparency Report is one of the key outputs of this Framework. Its primary objective is to enable signatory transparency on RI activities and facilitate dialogue between investors and their clients, beneficiaries and other stakeholders. A copy of this report will be publicly disclosed for all reporting signatories on the PRI website, ensuring accountability of the PRI Initiative and its signatories. This report is an export of the individual Signatory organisation s response to the PRI during the 2016 reporting cycle. It includes their responses to mandatory indicators, as well as responses to voluntary indicators the signatory has agreed to make public. The information is presented exactly as it was reported. Where an indicator offers a response option that is multiple-choice, all options that were available to the signatory to select are presented in this report. Presenting the information exactly as reported is a result of signatory feedback which suggested the PRI not summarise the information. As a result, the reports can be extensive. However, to help easily locate information, there is a Principles index which highlights where the information can be found and summarises the indicators that signatories complete and disclose. Understanding the Principles Index The Principles Index summarises the response status for the individual indicators and modules and shows how these relate to the six Principles for Responsible Investment. It can be used by stakeholders as an at-a-glance summary of reported information and to identify particular themes or areas of interest. Indicators can refer to one or more Principles. Some indicators are not specific to any Principle. These are highlighted in the General column. When multiple Principles are covered across numerous indicators, in order to avoid repetition, only the main Principle covered is highlighted. All indicators within a module are presented below. The status of indicators is shown with the following symbols: Symbol Status The signatory has completed all mandatory parts of this indicator The signatory has completed some parts of this indicator This indicator was not relevant for this signatory - The signatory did not complete any part of this indicator The signatory has flagged this indicator for internal review Within the table, indicators marked in blue are mandatory to complete. Indicators marked in grey are voluntary to complete. 1

3 Principles Index Organisational Overview Principle General Indicator Short description Status Disclosure OO 01 Signatory category and services Public OO 02 Headquarters and operational countries Public OO 03 Subsidiaries that are separate PRI signatories Public OO 04 Reporting year and AUM Public OO 05 Breakdown of AUM by asset class OO 06 How would you like to disclose your asset class mix Asset mix disclosed in OO 06 Public OO 07 Fixed income AUM breakdown Private OO 08 Segregated mandates or pooled funds Private OO 09 Breakdown of AUM by market Private OO 10 Additional information about organisation Public OO 11 RI activities for listed equities Public OO 12 RI activities in other asset classes Public OO 13 Modules and sections required to complete Public 2

4 Strategy and Governance Principle General Indicator Short description Status Disclosure SG 01 RI policy and coverage Public SG 02 Publicly available RI policy or guidance documents Public SG 03 Conflicts of interest Public SG 04 RI goals and objectives Public SG 05 Main goals/objectives this year Private SG 06 RI roles and responsibilities Public SG 07 RI in performance management, reward and/or personal development Public SG 08 Collaborative organisations / initiatives Public SG 09 Promoting RI independently Public Dialogue with public policy makers or SG 10 Private standard setters SG 11 ESG issues in strategic asset allocation Private SG 12 SG 13 SG 14 SG 15 SG 16 Long term investment risks and opportunity Allocation of assets to environmental and social themed areas ESG issues for internally managed assets not reported in framework ESG issues for externally managed assets not reported in framework RI/ESG in execution and/or advisory services Private Public n/a Public n/a SG 17 Innovative features of approach to RI Public SG 18 Internal and external review and assurance of responses Public 3

5 Indirect Manager Selection, Appointment and Monitoring Principle General Indicator Short description Status Disclosure SAM 01 Role of investment consultants/fiduciary managers Public SAM 02 RI factors in selection, appointment and monitoring across asset classes Public SAM 03 Breakdown by passive, quantitative, fundamental and other active strategies Private SAM 04 ESG incorporation strategies Public SAM 05 Selection processes (LE and FI) Public SAM 06 Appointment considerations (LE and FI) Public SAM 07 Monitoring processes (LE and FI) Public SAM 08 Percentage of (proxy) votes cast Public SAM 09 Selection processes (PE, PR and INF) Public SAM 10 Appointment considerations (PE, PR and INF) Public SAM 11 Monitoring processes (PE, PR and INF) Public SAM 12 SAM 13 Percentage of externally managed assets managed by PRI signatories Examples of ESG issues in selection, appointment and monitoring processes Public Private SAM 14 Disclosure of RI considerations Public Indirect - Inclusive Finance Principle General Indicator Short description Status Disclosure IFI 01 IFI 02 Percentage of externally managed assets in inclusive finance managed by PIIF signatories Due diligence policies and/or procedures for the selection of external investment managers Public Public IFI 03 Including issues referred to in the PIIF Public IFI 04 IFI 05 IFI 06 IFI 07 Monitoring managers implementation of the PIIF Managers provide information in line with established industry standards Disclosure of approach to RI in inclusive finance Contributing to promotion of RI in inclusive finance Public Public Public Public 4

6 Stichting Pensioenfonds ABP Reported Information Public version Organisational Overview PRI disclaimer This document presents information reported directly by signatories. This information has not been audited by the PRI Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for any error or omission. 5

7 Basic Information OO 01 Mandatory Gateway/Peering General OO 01.1 Select the category which best represents your primary activity. Non-corporate pension or superannuation or retirement or provident fund or plan Corporate pension or superannuation or retirement or provident fund or plan Insurance company Foundation Endowment Development finance institution Reserve - sovereign or government controlled fund Family office Other, specify OO 02 Mandatory Peering General OO 02.1 Select the location of your organisation s headquarters. Netherlands OO 02.2 Indicate the number of countries in which you have offices (including your headquarters) >10 OO 02.3 Indicate the approximate number of staff in your organisation in full-time equivalents (FTE). FTE

8 OO 02.4 Additional information. [Optional] The Stichting Pensioenfonds ABP is an independent body with its own Board of Trustees. Social partners, representing the employers and employees, nominate nine out of twelve members of the ABP Board of Trustees. The other three members are nominated by the thirteen pensioners that are part of ABP's Accountability Council. The Board members act independently from the organizations they represent and are responsible for ABP's performance, acting in the best interest of all participants. The chair is independent and nominated by the Board of Trustees. ABP's Accountability Council (Verantwoordingsorgaan) is a body with full authorization, incorporating 48 employees, pensioners and representatives of employers. The Council gives advice to the Board of Trustees on policy, either at the specific request of the Board, or of their own accord. A Supervisory Board with 5 independent members monitors the actions of the Board of Trustees. 'De Nederlandsche Bank' (DNB) is an important external institution that supervises ABP's Board. OO 03 Mandatory Descriptive General OO 03.1 Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right. Yes No OO 03.3 Additional information. [Optional] Our dedicated investment manager and advisor, APG Asset Management, is a member of the APG Groep, which in turn is majority-owned by ABP. Our investment manager is a PRI signatory and has separately completed the PRI Report. OO 04 Mandatory Gateway/Peering General OO 04.1 Indicate the year end date for your reporting year. 31/12/2015 OO 04.2 Indicate your total AUM at the end of your reporting year, excluding subsidiaries you have chosen not to report on, and advisory/execution only assets. trillions billions millions thousands hundreds Total AUM Currency EUR Assets in USD OO 06 Mandatory Descriptive General 7

9 OO 06.1 To contextualise your responses to the public, indicate how you would like to disclose your asset class mix. Publish our asset class mix as percentage breakdown Publish our asset class mix as broad ranges Internally managed (%) Externally managed (%) Listed equity % Fixed income % Private equity 0 <10% Property % Infrastructure 0 <10% Commodities 0 <10% Hedge funds 0 <10% Forestry 0 <10% Farmland 0 <10% Inclusive finance 0 <10% Cash 0 0 Other (1), specify 0 <10% Other (2), specify 0 0 'Other (1)' specified Opportunities in intellectual, overlay and global tactical asset allocation strategies. OO 06.2 Publish our asset class mix as per attached image [Optional]. OO 10 Voluntary Descriptive General 8

10 OO 10.1 Provide any additional information about your organisation, its mission, strategies, activities or investments which are important to contextualise your responsible investment activities. ABP aims to be a sustainable and dependable pension fund for its participants that is able to meet its financial liabilities now and in the future. The objectives of ABP are: to contribute actively to maintaining a sustainable pension system that enjoys broad support; to provide an affordable pension that is attractive to young and old and to participants, pensioners, former participants and employers. ABP will spread the risks inherent in the scheme as fairly as possible over all stakeholders. ABP provides flexibility and individual choice within the collective framework and communicates actively with participants and employers. To continue working to become a more participant-oriented pension fund, ABP aims to achieve transparency and promote engagement by providing information that really helps participants and employers to make the right pension choices. Communication is not focused exclusively on older people and also seeks to impress upon younger people the importance of a good pension. ABP supports employers in discharging their duty of care to their employees by assisting them with or relieving them of certain tasks. To provide more than pensions alone, ABP offers products and services that support active ageing and actively publicises the flexibility of the pension scheme, thus promoting the continued participation of older participants in the labour market. This is consistent with the long-term strategy to keep the pension scheme affordable. To make the organisation more professional, ABP focuses on specific target groups (public sector and education) and provides good pension fund governance based on accepted principles. ABP ensures that the pension scheme is consistent with the fund's objective of the best possible price/quality ratio. Gateway asset class implementation indicators OO 11 Mandatory Gateway General OO 11.1 Select your direct or indirect ESG incorporation activities your organisation implemented, for listed equities in the reporting year. We address ESG incorporation in our external manager selection, appointment and/or monitoring processes We do not incorporate ESG in our directly managed listed equity and/or we do not address ESG incorporation in our external manager selection, appointment and/or monitoring processes. OO 11.2 Select your direct or indirect engagement activities your organisation implemented for listed equity in the reporting year. We engage with companies on ESG issues via our staff, collaborations or service providers We require our external managers to engage with companies on ESG issues on our behalf We do not engage directly and do not require external managers to engage with companies on ESG factors. OO 11.3 Select your direct or indirect voting activities your organisation implemented for listed equity in the reporting year We cast our (proxy) votes directly or via dedicated voting providers We require our external managers to vote on our behalf We do not cast our (proxy) votes directly and do not require external managers to vote on our behalf OO 12 Mandatory Gateway General 9

11 OO 12.2 Select externally managed assets classes where you addressed ESG incorporation and/or active ownership in your external manager selection, appointment and/or monitoring processes (during the reporting year) Fixed income SSA Fixed income corporate (financial) Fixed income corporate (non-financial) Fixed income securitised Private equity Property Infrastructure Commodities Hedge funds Forestry Farmland Inclusive finance Other (1) None of the above 'Other (1)' [as defined in OO 05] Opportunities in intellectual, overlay and global tactical asset allocation strategies. OO 12.3 Additional information. [Optional] In 2008 ABP appointed APG as a dedicated discretionary investment manager to manage all of ABP's assets (APG is majority-owned by ABP). The contractual arrangement is long-term, although this arrangement is subject to renewal in regular multi-year intervals. Therefore, selection and appointment do not happen frequently, although in the initial selection and appointment process we did consider the manager's approach to responsible investing and the implementation of our Responsible Investment Policy remains a contractual requirement. ABP also regularly monitors the implementation of its Responsible Investment Policy in all of the above asset classes. OO 13 Mandatory Gateway General You will need to make a selection in OO 13.1onlyif you have any voluntary modules that you can choose to report on. OO 13.1 You are only required to report on asset classes that represent 10% or more of your AUM. You may report voluntarily on any applicable modules or sections by selecting them from the list below. Core modules Organisational Overview Strategy and Governance RI implementation directly or via service providers 10

12 RI implementation via external managers Indirect - Selection, Appointment and Monitoring of External Managers Listed Equities Fixed income - SSA Fixed income - Corporate (financial) Fixed income - Corporate (non-financial) Fixed income - Securitised Private Equity Property Infrastructure Inclusive Finance Closing module Closing module 11

13 Stichting Pensioenfonds ABP Reported Information Public version Strategy and Governance PRI disclaimer This document presents information reported directly by signatories. This information has not been audited by the PRI Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for any error or omission. 12

14 Responsible investment policy SG 01 Mandatory Core Assessed General SG 01.1 Indicate if you have an investment policy that covers your responsible investment approach. Yes SG 01.2 Indicate the components/types and coverage of your policy. Select all that apply Policy components/types Policy setting out your overall approach Formalised guidelines on environmental factors Formalised guidelines on social factors Formalised guidelines on corporate governance factors Asset class-specific guidelines Sector specific RI guidelines Screening / exclusions policy Engagement policy (Proxy) voting policy Other, specify (1) Other, specify(2) Coverage by AUM Applicable policies cover all AUM Applicable policies cover a majority of AUM Applicable policies cover a minority of AUM SG 01.3 Indicate what norms have you used to develop your RI policy. UN Global Compact Principles UN Guiding Principles on Business and Human Rights Universal Declaration of Human Rights International Bill of Human Rights International Labour Organization Conventions United Nations Convention Against Corruption OECD Guidelines for Multinational Enterprises Other, specify (1) other (1) description ICGN Corporate Governance Principles Other, specify (2) 13

15 other (2) description OECD Corporate Governance Principles Other, specify (3) other (3) description Convention on Cluster-bombs and Landmines None of the above SG 01.4 Provide a brief description of the key elements of your investment policy that covers your responsible investment approach [Optional]. In November 2015 we revised our Responsible Investment policy. Below we describe our new policy. In summary, ABP aims to generate the returns necessary to meet our (future) pension liabilities in a responsible and sustainable manner. We do this by investing world-wide, with a sufficient spread across various investment categories and sectors, fully integrating sustainability and governance aspects and criteria for corporate social responsibility in our investment decisions. What we invest in should be transparent, and so are the positions we take regarding current investment issues among our participants and in the social debate. In order to put our vision into practice, we apply a four-pronged approach: 1. Careful selection of investments and engagement (through all asset classes) 2. Investing in leaders, stimulating promising companies 3. Theme-based sustainability improvement with concrete targets (environmental, social and governance themes) 4. Transparency and accountability (high quality reporting) ABP prohibits its investors to invest in: companies involved in products or services prohibited by Dutch or international law. (E.g. companies involved in the production of antipersonnel (land)mines, cluster bombs, or chemical or biological weapons. sovereign bonds issued by countries that are subject to an arms embargo by the UN Security Council. No SG 01.5 Additional information [Optional]. Our four-pronged responsible investment approach in more detail: 1. Careful selection of investments and engagement Responsible investors select their investments with care. We expect our investors to have thought carefully about whether an investment, in addition to being financially attractive, is also responsible and sustainable. We do not rule out certain investments, investment instruments or techniques in advance. In addition to a careful selection of investments, we also consider it necessary to remain closely involved in our investments and to exert our influence where we believe we can realize improvements. In this way, we ensure that we continue to manage the risks of our investments, we can influence the performance of the companies in which we invest and we ensure that sustainability and corporate social responsibility remain on their agendas. 2. Investing in leaders, stimulating promising companies Between 2015 and 2020, we will be addressing a large part of our investment portfolio, step by step. We cannot do everything, nor can we do everything at once. On the basis of information from well-known external parties and our own experts, we will invest a growing part of our pension assets in financially attractive companies that, in comparison to similar companies, are leaders in the field of sustainability and corporate social responsibility. Financially attractive companies that are trailing in the field of sustainability and corporate social responsibility but have the possibility of catching up (promising companies) also qualify for inclusion in the portfolio, on condition that 14

16 our investors engage with them. Such companies must show demonstrable improvements within the foreseeable future. 3. Theme-based sustainability improvement with concrete targets In the implementation of our Responsible Investment Policy, we also focus on a number of themes. We devote attention to these themes by placing them on the agenda at companies and government agencies in which we invest and select investments that can make a verifiable contribution towards this, as well as relevant regulators. We focus on themes that are connected to and that are current among our participants or that affect sectors in which our participants are (or have been) employed. In the 2016 to 2020 period, we will in any event be focusing on strengthening economic structure (an important theme for the government itself), safety and security (important for defense and aid services) and education (good education and good educational facilities are important for the education sector). On the basis of social developments and interaction with our participants, themes can be added, or adjusted over the years. 4. Transparency and accountability There is growing social pressure on companies, governments and major investors such as pension funds to treat people, resources and the environment sustainably and responsibly. Transparency is essential here. We consider it extremely important to be able to show our participants how we deal with this in the investment of pension assets. We therefore publish a detailed responsible investment report each year, regularly post news items on our website and conduct a permanent dialogue with our participants and social organization on our investments in relation to social issues. We periodically assess and survey the position of our participants in this regard. SG 02 Mandatory Core Assessed PRI 6 SG 02.1 Indicate which of your investment policy documents (if any) are publicly available. Provide URL and an attachment of the document. Policy setting out your overall approach URL Formalised guidelines on environmental factors Formalised guidelines on social factors Formalised guidelines on corporate governance factors URL Asset class-specific guidelines Sector specific RI guidelines Screening / exclusions policy URL Engagement policy 15

17 URL (Proxy) voting policy URL We do not publicly disclose our investment policy documents SG 02.2 Additional information [Optional]. NOTES: 1) Please note that our Voting Policy is part of our Corporate Governance Framework 2) Responsible Investment Policy - English version: 3) List of Holdings& External Managers: SG 03 Mandatory Core Assessed General SG 03.1 Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process. Yes SG 03.2 Describe your policy on managing potential conflicts of interest in the investment process. ABP has numerous procedures, structures and policies to protect against conflicts of interest. For ABP an extensive Code of Conduct is in place, enforcing professional behaviour and integrity of employees and decision makers. For outsourced activities (e.g. asset management activities) ABP demands third parties to have a Code of Conduct in place which is at least as stringent as ABP's Code. No Objectives and strategies SG 04 Mandatory Gateway/Core Assessed General 16

18 SG 04.1 Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities. Quarterly or more frequently Biannually Annually Less frequently than annually Ad-hoc basis It is not reviewed SG 04.2 Additional information. [Optional] ABP strives to be a leader on responsible investing. Some responsible investment objectives are evaluated annually (due to data availability) and some are evaluated quarterly. If due to - for instance - a changing market environment, an objective is no longer viewed as ambitious, the Board may decide to raise the bar on that objective. Objectives may also be changed if they appear not to be relevant anymore. Governance and human resources SG 06 Mandatory Core Assessed General SG 06.1 Indicate the roles present in your organisation and for each, indicate whether they have oversight and/or implementation responsibilities for responsible investment. Roles present in your organisation Board members or trustees Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Chief Executive Officer (CEO), Chief Investment Officer (CIO), Investment Committee Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Other Chief-level staff or head of department, specify Portfolio managers Investment analysts Dedicated responsible investment staff External managers or service providers Investor relations Other role, specify See answer SG

19 Other description (1) Oversight/accountability for responsible investment Implementation of responsible investment No oversight/accountability or implementation responsibility for responsible investment Other role, specify SG 06.2 For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities. ABP's Board of Trustees has oversight through quarterly reports on responsible investing. The Board of Trustees evaluates the Responsible Investment (RI) Policy - and part of its implementation - annually. ABP's Investment Committee (including 6 of the 12 Trustees) has items related to responsible investing on its agenda every month. It oversees the implementation of ABP's Responsible Investment Policy and gives guidance to the Asset Management organisation. ABP's Executive Office supports the Board of Trustees and the Investment Committee and interacts with the Asset Management organisation on an ongoing (almost daily) basis on Responsible Investment topics. Every other week there is a formal meeting withthe Managing Director of APG's Sustainability& Governance team. The Service Level Agreement between ABP and its dedicated asset manager integrates responsible investment requirements. ABP receives monthly and quarterly reports from APG. The RI Policy is supported by further detailed policies. This reflects the remit of our RI Policy which extends to all asset classes. RI is fully embedded in APG's Governance structure. The CIO of APG Asset Management chairs the Responsible Investment Committee (RIC), which also includes the MD of S&G, the CEO, and two other board members responsible for Clients and Risk respectively, as well as the MD Legal, Tax and Regulatory Affairs. The RIC oversees the implementation of the RI policy and meets on a regular basis. It approves for example all relevant RI guidelines and implementation policies. Certain matters will be escalated to the full APG AM Board APG has a dedicated Sustainability& Governance team of nine people in place who work to implement our Responsible Investment Policy across Building Blocks in cooperation with the portfolio managers. ABP relies on APG for the execution of investment-related activities and implementation of its Responsible Investment Policy. At the investment manager level, for liquid assets, individual investment decisions are made by portfolio managers responsible for specified portfolios - e.g. shares or credits in listed companies in a particular sector. S&G specialists work directly with these portfolio managers to analyse relevant ESG issues and determine their investment implications. For illiquid assets, APG uses third party external managers for specialist types of investment in equities and fixed income (bonds), as well as in real estate, infrastructure, commodities, hedge funds and private equity. APG's S&G team is involved in all decisions to appoint new external managers and signoff on new investment mandates. External managers must be able to demonstrate that they have appropriate policies in place to take account of all relevant ESG issues and report regularly to our investment manager on their performance. SG 06.3 Indicate the number of dedicated responsible investment staff your organisation has. Number 0.5 SG 06.4 Additional information. [Optional] ABP's Board of Trustees is accountable for the development and implementation of the responsible investment policy. Oversight and assistance is provided by the investment team of ABP's Executive Office (consisting of a Head of Investments, a Risk Manager, a Senior advisor investments and a Senior policy advisor). The investment team assists and advises the Board of Trustees via the Investment Committee (consisting partly of members of the Board of Trustees and partly of external investment specialists). Responsible investment forms an essential part of ABP's investment policy and is therefore frequently being discussed within the executive office itself and with the Board of Trustees and is also strongly integrated into the general corporate culture. All other roles with specific responsibilities on responsible investing are anchored within our dedicated investment manager, a member of the APG Groep, which in turn is majority-owned by ABP. 18

20 SG 07 Voluntary Additional Assessed General SG 07.1 Indicate if your organisation s performance management, reward and/or personal development processes have a responsible investment element. Board members/board of trustees Responsible investment included in personal development and/or training plan SG 07.2 Describe any activities undertaken during the reporting year to develop and maintain Board members skills and knowledge in relation to responsible investment. In the summer of 2014 ABP's Board of Trustees started with a broad evaluation of the Responsible Investment Policy. This evaluation extended to 2015 with 6 workgroup sessions (a workgroup consisting of 4 out of 12 board members) and a 2 hours board session in both July and August. The board conducted an extensive literature review and peer review on responsible investing, and discussed ABP's fourth investment belief which focuses on responsible investing. The result was a revised responsible investment policy in November 2015, with a new investment belief (ABP can invest responsibly and make the investment portfolio sustainable without this being at the expense of the portfolio's risk-return profile) and responsible investment goals for During the second half of 2015 there were multiple meetings with pensioners, where board members also explained ABP's responsible investment policy. None of the above Chief Executive Officer (CEO), Chief Investment Officer (CIO), Investment Committee Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above Other role See answer SG 06.4 Responsible investment KPIs and/or goals included in objectives Responsible investment included in appraisal process Variable pay linked to responsible investment performance Responsible investment included in personal development and/or training plan None of the above SG 07.3 Provide any additional information on your organisation s performance management, reward and/or personal development processes in relation to responsible investment. ABP does not have a variable incentive structure and operates as a not-for-profit organisation. Acting as a responsible investor is an important part of the investment policy and incorporated in the overall evaluation of staff. 19

21 Promoting responsible investment SG 08 Mandatory Core Assessed PRI 4,5 New selection options have been added to this indicator. Please review your prefilled responses carefully. SG 08.1 Select the collaborative organisation and/or initiatives of which your organisation is a member or in which it participated during the reporting year, and the role you played. Select all that apply Principles for Responsible Investment Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP is a signatory of the UN PRI and one of ABP's Board Members is on the PRI Board. ABP's investment manager, APG, is also one of the founding members of the United Nations Principles for Responsible Investment. APG initiated collaboration, led and prepared papers and joint statements, acted as an active spokesperson, provided financial support beyond membership fee, supported to some degree in leadership and/or in preparation of documentation, contributed to the organisation or content of events organised by the group, and provided general support for the initiative in various non-public forums. Additionally, APG is a member of the PRI Steering Committee on Policy and Research, and the PRI working groups on labour relations and palm oil, as well as the Private Equity Advisory Committee and the Hedge Fund Advisory Committee. AFIC La Commission ESG Asian Corporate Governance Association Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, initiated collaboration, led and prepared papers and joint statements, and provided general support for the initiative in various non-public forums. Australian Council of Superannuation Investors 20

22 Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, is a member of the Australian Council of Superannuation Investors. BVCA Responsible Investment Advisory Board CDP Climate Change CDP Forests CDP Water CFA Institute Centre for Financial Market Integrity Code for Responsible Investment in SA (CRISA) Council of Institutional Investors (CII) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, has joined the association/initiative and is a member of the Advisory board. ESG Research Australia Eumedion Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP and ABP's investment manager, APG, are members of Eumedion. APG is on the general and the daily board of Eumedion and have representatives in several committees. During 2015, APG contributed to papers and joint statements, acted as an active spokesperson, supported to some degree in leadership and/or in preparation of documentation, contributed to the organisation or content of events organised by the group, and provided general support for the initiative in various non-public forums. 21

23 EVCA Responsible Investment Roundtable Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, is a member of Invest Europe and is represented via the vice-chair of the Invest Europe Professional Standards Committee. APG also chairs the Invest Europe Responsible Investment Roundtable, has led and contributed to initiatives, acted as an active spokesperson, contributed to the organisation or content of events organised by these committees, and provided general support for the initiatives in various non-public forums. In 2015 Invest Europe published its revised Professional Standards Handbook and Investor Reporting Guidelines and APG significantly contributed to the drafting of these documents. Extractive Industries Transparency Initiative (EITI) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP is a member of the Extractive Industries Transparency Initiative. ABP's investment manager, APG, actively participates in the Extractive Industries Transparency Initiative (EITI) on behalf of its clients. APG provided general support for the initiative in various non-public forums. Global Investors Governance Network (GIGN) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced 22

24 Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, contributed to papers and joint statements, acted as an active spokesperson, supported to some degree in leadership and/or in preparation of documentation, contributed to the organisation or content of events organised by the group, and provided general support for the initiative in various non-public forums. Global Impact Investing Network (GIIN) Global Real Estate Sustainability Benchmark (GRESB) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, is a founding member of GRESB and has an active role in the Executive Board and the Supervisory Board. APG is also a founding member of GRESB Infrastructure and fulfils the Chair position in the Infrastructure Advisory Board of GRESB. Institutional Investors Group on Climate Change (IIGCC) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP signed the IIGCC Global Investor Statement on Climate Change. ABP's investment manager, APG, is an active member of the board of the European Institutional Investors Group on Climate Change (IIGCC). Interfaith Center on Corporate Responsibility (ICCR) International Corporate Governance Network (ICGN) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced 23

25 Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, is a member of the International Corporate Governance Network (ICGN) and chairs the Integrated Business Reporting Committee. APG has been actively involved in organizing conferences, speaking at conferences, and and is part of the ICGN faculty of its training programme. Investor Group on Climate Change, Australia/New Zealand (IGCC) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] Through ABP's investment manager's involvement on the board of the IIGCC, we actively participate in other climate-oriented investor networks. APG spoke on behalf of the coalition of investors (IIGCC, IGCC, INCR& UNEP FI) on climate change at the UN Summit. International Integrated Reporting Council (IIRC) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] Since 2010, ABP's investment manager, APG, has been an active member of the International Integrated Reporting Committee (IIRC), a powerful interdisciplinary initiative by leading figures from the business community, the financial sector, legislators and regulators, accountants, academics and civil society organizations. IIRC has published a widely supported reporting framework for companies that combines financial, social, environmental and governance information in a workable form. APG is active at the highest level of the International Integrated Reporting Council (IIRC) and was also a member of the Working Group. In December 2013 the IIRC published its first IR framework, to the development of which APG had contributed. APG aims to ensure that the IR Framework meets investors' needs. Investor Network on Climate Risk (INCR)/CERES Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced 24

26 Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] Through ABP's investment manager's, involvement on the board of the IIGCC, we actively participate in other climate-oriented investor networks. APG spoke on behalf of the coalition of investors (IIGCC, IGCC, INCR& UNEP FI) on climate change at the UN Summit. Local Authority Pension Fund Forum Principles for Financial Action for the 21st Century Regional or National Social Investment Forums (e.g. UKSIF, Eurosif, ASRIA, RIAA), specify Eurosif Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] Although not a member, ABP's investment manager, APG, has contributed to the organisation or content of events organised by the group and provided general support for the initiative in various non-public forums. Shareholder Association for Research and Education (Share) United Nations Environmental Program Finance Initiative (UNEP FI) Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] Through our investment manager's involvement on the board of the IIGCC, we actively participate in the UNEP FI for example through the Joint Investor statement on climate change and by collaboration for events at the Paris Climate Summit. We are also participating in the Portfolio Decarbonisation Coalition. APG has actively contributed to the UN Inquiry into Sustainable Financial Markets in the Netherlands, and also participated in consultation events in the UK. Further input through our role on the PRI Policy& Research Steering Committee. United Nations Global Compact 25

27 Your organisation s role in the initiative during the reporting period (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP and ABP's investment manager, APG, use the principles put forth by the UNGC in their investment processes and engagement decisions. In so doing, we advocate externally for the adoption of the principles by the companies in which we invest. Other collaborative organisation/initiative, specify Hedge Funds Standards Board (HFSB) Your organisation s role in the initiative during the reporting year (see definitions) Basic Moderate Advanced Provide a brief commentary on the level of your organisation s involvement in the initiative. [Optional] ABP's investment manager, APG, is fully committed to the HFSB and actively advances its Standards. Through our hedge fund manager we are represented on the Board of Trustees and APG is also an Investor Chapter member of the HFSB. Other collaborative organisation/initiative, specify Other collaborative organisation/initiative, specify Other collaborative organisation/initiative, specify SG 09 Mandatory Core Assessed PRI 4 SG 09.1 Indicate if your organisation promotes responsible investment, independently of collaborative initiatives. Yes 26

28 SG 09.2 Indicate which of the following actions your organisation has taken to promote responsible investment, independently of collaborative initiatives. No Provided or supported education or training programmes for clients, investment managers, broker/dealers, investment consultants, legal advisers or other investment organisations Provided financial support for academic or industry research on responsible investment Encouraged better transparency and disclosure of responsible investment practices across the investment industry Spoke publicly at events and conferences to promote responsible investment Wrote and published in-house research papers on responsible investment Encouraged the adoption of the PRI Wrote articles on responsible investment in the media. Other, specify SG 09.3 Additional information. [Optional] By publishing an annual Responsible Investment report on our website, ABP encourages transparency and disclosure of responsible investment practices and through our investment manager, we encourage others in the investment chain to sign up to the PRI. Both in May and in October 2015 ABP organized a press conference. The first one was related to the publication of our Responsible Investment report over the year 2014 and the second one was related to the publication of our new Responsible and Sustainable Investment policy. Both press conferences were chaired by the chairwoman of our Board of Trustees. Implementation not in other modules SG 13 Mandatory to Report Voluntary to Disclose Descriptive PRI 1 SG 13.1 Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas. Yes SG 13.2 Indicate the percentage of your total AUM invested in environmental and social themed areas. % of total AUM 10 SG 13.3 Please specify which thematic area(s) you invest in and provide a brief description. Area Clean technology (including renewable energy) 27

29 Asset class invested Listed equity Fixed income - SSA Fixed income - Corporate (financial) Fixed income - Corporate (non-financial) Fixed income - Securitised Private equity Property Infrastructure Commodities Hedge funds Forestry Farmland Inclusive finance Brief description of investment On behalf of ABP, our dedicated investment manager actively seeks out attractive investments that promote sustainability. These include investments in sustainable energy, drinking water and waste water purification, waste disposal, schools, and hospitals. Directly and indirectly via our third party external fund managers, we provide capital to investments that add value in respect of both financial returns and sustainable development. Green buildings Asset class invested Listed equity Fixed income - SSA Fixed income - Corporate (financial) Fixed income - Corporate (non-financial) Fixed income - Securitised Private equity Property Infrastructure Commodities Hedge funds Forestry Farmland Inclusive finance 28

30 Brief description of investment Our investment manager considers 'Green Stars' in the quadrant model of the GRESB survey as Green building portfolios/investments. Green Stars are real estate investments meeting the 50% hurdle on both dimensions (Management& Policy and Implementation & Measurement within GRESB). Sustainable forestry Asset class invested Listed equity Fixed income - SSA Fixed income - Corporate (financial) Fixed income - Corporate (non-financial) Fixed income - Securitised Private equity Property Infrastructure Commodities Hedge funds Forestry Farmland Inclusive finance Brief description of investment Our forestry investments have to meet minimum requirements addressed by standards of the FSC or a comparable forestry certification scheme. Sustainable agriculture 29

31 Asset class invested Listed equity Fixed income - SSA Fixed income - Corporate (financial) Fixed income - Corporate (non-financial) Fixed income - Securitised Private equity Property Infrastructure Commodities Hedge funds Forestry Farmland Inclusive finance Brief description of investment Our investment manager has contributed to the development of sector guidelines for the investment community as a whole in Together with a group of institutional investors they launched the Principles for Responsible Investment in Farmland with the goal of improving the sustainability, transparency and accountability of investments in farmland. These guidelines have since been adopted by the industry. The Farmland Principles provide institutional investors with guidance on: Promoting environmental sustainability; Respecting labour and human rights; Respecting existing land and resource rights; Upholding high business and ethical standards; and Reporting on activities and progress towards implementing and promoting the Principles. Microfinance 30