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APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
APG and Sustainability
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APG and Sustainability

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Presentation by Rob Lake of APG (Netherlands), given at the Take Action! 2010 Impact Investing Conference in Boston.

Presentation by Rob Lake of APG (Netherlands), given at the Take Action! 2010 Impact Investing Conference in Boston.

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  • APG provides asset management, administration and communication services for pension funds. We also provide assistance to pension funds in determining their strategy. In addition, we develop financial products as a supplement to existing pension schemes. APG carries out collective pension schemes for participants in the education, government and construction sectors, cleaning and window-cleaning companies, housing corporations and energy and utility companies.
  • APG’s asset management is about more than realising financial gains. APG also assesses investments based on other criteria such as the environment or social issues such as child labour, trade union freedom and good management. In addition, we also make use of our scale to influence companies to comply with international standards for corporate social responsibility and Corporate Governance. In addition, we are always looking for interesting investment opportunities in clean and/or in energy saving technologies. We thus put the social responsibility of our clients into practice and contribute to their interest in the integrity of the financial markets.
  • Voor vastgoed stelden wij ons de vraag begin 2009: wat is duurzaamheid binnen de vastgoed beleggingscategorie en hoe kunnen wij inzicht in de performance van onze investeringen krijgen en mogelijk verbeteren Labels zoals LEED en BREEAM richten zich op gebouw niveau. Onze investeringen zijn met name vastgoedportefeuilles. Met name voor privaat vastgoed is geen betrouwbare data voorhanden. Daarom zijn wij samen met andere investeerders (PGGM, USS) onze eigen duurzaamheid database gaan ontwikkelen samen met de universitiet van Maastricht. * 100% EPRA universe (europees genoteerd vastgoed). 100% USA; 88% Australia en >60% Asia ** bijna gehele INREV-universe (Europa) en alle PGGM, APG, GIC en USS fondsen in USA + Asia Pacific Response rate: 200 (v/d 700): vertegenwoordigt meer dan 200 miljard aan AuM Input van Hammerson, Corio, Unibail Rodamco en British Land USS = Universities Superannuation Scheme (the UK’s 2nd largest pension fund) ACSI = the Australian Council of Super Investors GIC = global investment management company IPE award, op 26 mei 2010 ontvangen, is meest prestigieuse prijs in Europa
  • J.P. Morgan scored 40 companies in our pan-European property universe based on publicly available disclosure, as a proxy for management’s consideration of sustainability issues. Sustainability factors used: 1 Sustainability mentioned on the Website 2 Separate CSR Reports 3 Discussion of Sustainability in Annual Reports 4 Data on Energy Useage 5 Data on Carbon Emissions 6 Use of Renewable Energy 7 Existing Carbon Offset 8 ISO 14001 Compliance 9 FTSE4Good or equivalent 10 Comment on Future Legislation 11 Targets
  • We verwachten dat bedrijven voldoen aan de 10 principes van het Global Compact van de VN De eerste twee principes van het Global Compact zijn rechtstreeks afgeleid van de Universele Verklaring van de Rechten van de Mens : Principe 1: Bedrijven dienen binnen de grenzen van hun invloedssfeer de internationaal uitgevaardigde mensenrechten te eerbiedigen; en Principe 2: zich er steeds van te vergewissen dat zij niet medeplichtig worden aan schending van de mensenrechten. De volgende vier principes zijn afgeleid van de Verklaring van de International Labour Organisation over de fundamentele arbeidsrechten : Principe 3: Bedrijven dienen de vrijheid van vakvereniging en de effectieve erkenning van het recht op collectieve onderhandelingen te handhaven; Principe 4: de uitbanning van iedere vorm van verplichte en gedwongen arbeid; Principe 5: de effectieve afschaffing van kinderarbeid; en Principe 6: de bestrijding van discriminatie in arbeid en beroep. De volgende drie principes zijn afgeleid van de Verklaring van Rio inzake Milieu en Ontwikkeling : Principe 7: Bedrijven dienen voorzorg te betrachten bij hun benadering van milieu-uitdagingen; Principe 8: initiatieven te ondernemen om een groter milieubesef te bevorderen; en Principe 9: de ontwikkeling en de verspreiding van milieuvriendelijke technologieën te stimuleren. Het laatste principe is afgeleid van de Anti-Corruptie Conventie van de Verenigde Naties : Principe 10: Bedrijven moeten elke vorm van corruptie tegengaan, inclusief afpersing en omkoping. Freeport-McMoRan voldoet NIET  Global Compact Violator  loost mijnafval in de rivier Dialoog: Mail en briefwisselingen Gesprekken met management Aandeelhoudersresolutie met andere grote beleggers (Zweden, New York) (gesteund door 32,5%) : Intensieve dialoog met bedrijven die daar niet aan voldoen Doel de milieu en financiële prestaties te verbeteren Uitsluiten als uiterste consequentie als dialoog niet werkt dan risico’s onacceptabel zijn Andere voorbeelden: Mensenrechten in Birma (Total, DAEWOO) Mijbouw in India ( Werknemersrechten in US ( Wall-mart) Mijnbouw in Afrika (Anglo-American)
  • Schone technologieen: € 250 million clean tech mandate with Alpinvest 8 funds, 54 underlying companies, e.g. * waste-to-fuels * geothermal power services * molten salt technology for CSP * cylindrical solar panel technology * residential wind turbines * wastewater treatment Duurzame energie Ampere Equity Fund – with PGGM and other Dutch partners ABN Amro Infrastructure Capital Equity Fund – solar (zonnepanelen) NIBC European Infrastructure Fund – biomass-fired power plant € 550 m in CDM projects and emissions trading Sustainable forestry * All forest investments FSC or SFI certified * Global Solidarity Forest Fund – Mozambique – USD 66 m Biofuels – Biogreen Oil – jatropha plantations and biodiesel feedstock – USD 10 m Innovation Fund – Energy Efficiency Energy Efficiency Project Investment Company - China Established and structured by APG $100 million fund, APG $50 million Bring together ESCOs, technology providers, capital providers and hosts (energy users) Invest in energy efficiency projects Expected cash IRR (USD) high teens/low 20s These are the pure plays.
  • Transcript

    • 1. APG and Sustainability Rob Lake, Head of Sustainability & Governance 17 September 2010
    • 2. Introduction to APG <ul><li>Asset Management for pension funds </li></ul><ul><li>Pension assets of around € 240 billion (as at 31 Dec ‘09) </li></ul><ul><li>More than 20,000 employers and 4,000,000 participants </li></ul><ul><li>> 30% of all collective pension schemes in the Netherlands </li></ul><ul><li>Strong commitment to integrate ESG across the portfolio </li></ul><ul><li>International network and offices in NY and HK </li></ul><ul><li>We take a long term investment view </li></ul>
    • 3. APG’s Responsible Investment Policy <ul><li>The main purpose: </li></ul><ul><li>Contribute to APG’s risk-adjusted financial return </li></ul><ul><li>Demonstrate social responsibility </li></ul><ul><li>Contribute to the integrity of financial markets </li></ul>
    • 4. APG’s Responsible Investment Policy: Implementation <ul><li>Integrating ESG into the investment process </li></ul><ul><li>Promoting compliance with the UN Global Compact and raising ESG standards through engagement with companies </li></ul><ul><li>Actively exercising voting rights </li></ul><ul><li>Investing in sustainability solutions </li></ul><ul><li>Engaging with legislators and policy makers </li></ul><ul><li>Excluding companies are directly involved in the production of weapons prohibited under Dutch or international law, and companies that do not comply with the UN Global Compact </li></ul>
    • 5. <ul><li>Global Survey on integration of environmental practices </li></ul><ul><ul><li>Listed Real Estate companies: more than 200 companies </li></ul></ul><ul><ul><li>Non-listed funds: close to 500 funds </li></ul></ul><ul><li>In conjunction with: </li></ul><ul><ul><li>The sector: input from large European REITs </li></ul></ul><ul><ul><li>Other investors: PGGM, USS </li></ul></ul><ul><ul><li>Leading real estate associations: EPRA, INREV and ACSI </li></ul></ul><ul><ul><li>Maastricht University </li></ul></ul><ul><li>IPE Real Estate platinum award 2010 for ‘Outstanding Industry Contribution’ </li></ul>Global Environmental Real Estate Survey
    • 6. Sustainable RE companies perform better +15% since Dec-06 Source: J.P. Morgan Europe Equity Research September 2010
    • 7. Unlisted assets – sustainability standards and reporting in contracts Commodities Forestry - FSC Mining – IFC Standards Biofuels – Roundtable on Sustainable Biofuels Soy – Roundtable on Responsible Soy Infrastructure European infrastructure fund – new policy developed Hedge funds ContourGlobal – energy in emerging markets: IFC environmental and social standards Real Estate Global environmental survey All new funds will have to complete the APG survey from Q2 2011 Committee on Investment Proposals
    • 8. <ul><li>Korean tire producer, 6th largest worldwide </li></ul><ul><li>Concerns about working conditions and safety performance </li></ul><ul><ul><li>Health risks: 15 fatalities related to serious diseases in 3 years time </li></ul></ul><ul><ul><li>Financial risks: Health related claims </li></ul></ul><ul><li>Upon APG’s request Hankook Tire improved its performance: </li></ul><ul><ul><li>Improved standards </li></ul></ul><ul><ul><li>Regular medical checks </li></ul></ul><ul><ul><li>Clinic opened with company doctor </li></ul></ul><ul><ul><li>Sustainability report in 2010 </li></ul></ul>Engagement - Hankook Tire
    • 9. <ul><li>Riverine tailings disposal at Grasberg mine </li></ul><ul><li>25 April 2008 – engagement started </li></ul><ul><li>11 June 2009 and 9 June 2010: shareholder resolution (32.5% and 33% in favour): appoint a board member with environmental expertise </li></ul><ul><li>Meetings with CEO </li></ul><ul><li>Engagement continues </li></ul>Engagement – Freeport-McMoRan
    • 10. Investing in sustainability solutions Renewable Energy e.g. €185m in infrastructure funds Clean technologies e.g. €250m private equity Microfinance approx. €150m In total around €2 billion Carbon reduction approx. €500 million in carbon trading and reduction
    • 11. Summary <ul><li>Contributing to improving risk-return profile </li></ul><ul><li>Demonstrating social responsibility </li></ul><ul><li>Contributing to integrity of financial markets </li></ul>

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