Compuestos orgánicos volátiles

Pensioenfonds Zorg en Welzijn (PFZW) provides pension fund services for (former)employees in the care and welfare sector in the Netherlands.

4.26.1 (Socially) responsible investment policy

PFZW has a publicly available responsible investment policy that has been detemined by the fund, with the support of PGGM, its asset manager. This has been the case for a number of years. This policy deals with a variety of ESG themes, but focuses particularly on the topics of controversial weapons, human rights, health and medicine, corporate governance, and climate change and is based on international principles like the uN PRI and the OECD guidelines for multinational enterprises. PGGM’s policy is meant to create added value by keeping the following points in mind:

- achieve a high, stable and responsible return for its clients

- maintain strict control over the investment portfolio and the controlling of risks

- achieve extra return through innovative investment strategies

This policy covers all investment categories.

Score: 5 points

PFZW has a clear responsible investment policy covering a range of deliberately chosen environmental and social themes. The policy is based on international principles, clarifies the use of instruments and covers all investment categories.

4.26.2 Exclusions

PFZW has an exclusion policy with three categories. Companies are excluded if they:

- Are involved in the production and/or sale of (essential parts of) controversial weapons

- Are involved in the violation of fundamental human rights (as described by the uN and the IlO)

Do not change their behaviour after an ESG engagement process has not led to improvement (for instance on environmental issues)

The exclusion policy also includes government bonds since 2008. PFZW publishes a list of excluded companies and countries on its website. This list of 30 companies contains 29 companies involved in controversial wea- pons and one company that was excluded after an unsuccessful ESG engagement process around human rights

Description Numbers (in millions €)

Premium income 4 086

Number of participants 1 100 000 active participants

737 000 non-contributing participants 277 000 pensioners

Number of employees -

Value of investments €71 000 (31-12-2008)

Distribution among investment categories:

Equity 32%

Bonds 32%

Derivatives -

Real estate 14%

Alternatives (commodities, private equity, structured credit, infrastructure, portfolio of strategies 19%

violations. A total of 5 countries are excluded. These exclusions are based on IlO statements and uN sancti- ons. A country can also be excluded if these countries violate the values of PFZW and do not show any inten- tion to change.

Score: 5 points

PFZW has a clear exclusion policy based on a range of environmental and social criteria. It also publishes a list of excluded companies and countries.

4.26.3 ESG-criteria for portfolio selection

PGGM Vermogensbeheer, the asset manager for PFZW, also has an ESG policy. ESG-criteria are used to analy- se the behaviour of companies in which PFZW invests. PFZW has signed the uN PRI and PGGM Vermogensbeheer is a signatory investor of the Carbon Disclosure Project (CDP). This ESG analysis also applies to the investment process in other asset classes such as real estate and private equity.

PFZW has given PGGM a mandate to construct a Responsible Equity Portfolio, where responsible companies are selected based on positive selection.

Score: 5 points

ESG-criteria are applied to the selection of investments within specially developed funds using positive selection. PFZW also has a publicly available document containing clearly defined ESG criteria applied to investments and carries out concrete activities.

4.26.4 Engagement

PFZW has chosen four themes for its engagement policy: corporate governance, human rights, climate chan- ge, and health. Its engagement activities are carried out by PGGM, which outsources these activities partial- ly to F&C. A report that summarizes all engagement and voting activities is available on the website. This report also contains the names of companies that were engaged with.

Score: 5 points

PFZW has a deliberately chosen engagement policy and regularly engages with companies. It also reports on its activities and links this to its exclusion policy.

4.26.5 Voting policy

PFZW has a voting policy that contains a range of ESG issues. It also reports on its voting activities in its PGGM Kwartaalverslagen Actief Aandeelhouderschap report. In this report companies and issues are clearly repor- ted on. It is also possible to view the proxy voting activities for PFZW on the PGGM website.

PFZW voted at 92% of the Annual General Meetings in which it was entitled to vote. This was done by atten- ding the meetings, sending representatives or using voting platforms. PFZW pays special attention to share- holder resolutions concerning ESG issues and decides on an individual basis whether to support it or not.

Score: 4 points

PFZW pays attention to shareholder resolutions, has an ESG voting policy and reports on its activities.

4.26.6 Sustainable project financing

PFZW invests a significant amount in sustainable project financing. In 2008 the invested amount increased form €1,7 to €2,4 billion. PFZW is planning to increase this amount in 2009.

Score: 4 points

PFZW invests in excess of €1 billion in sustainable project financing, but does not provide information on projects.

4.26.7 Transparency in outsourcing

PFZW has completely outsourced its asset management to PGGM. PGGM is subject to PFZW’s responsible investment policy. In broad terms, it involves the following activities:

• Responsible investment decisions • Committed investment

• Exclusions of companies and government bonds • Stimulating innovation

PFZW also outsources part of the asset management out to external parties. These parties, along with the invested capital, are published on PFZW’s website and are also judged based on ESG criteria. These criteria will play an increasingly important role in the selection of new parties. The methodology for this process is described on PGGM’s website as well as its annual report on responsible investment activities in 2008 (Jaarverslag Verantwoord Beleggen 2008).

Score: 3 points

PFZW is clear about its outsourcing and provides an overview of external parties. It does not, however, formalize external party commitment to its responsible investment policy.

4.26.8 Dialogue with society

PFZW has an active dialogue with its members within its participants’ council (deelnemersraad). This dialo- gue can be continued with the fund as well as the asset manager at its client days. PFZW also seeks a dialo- gue with societal organisations. This led, for example, to the selection of the themes to be focused on in its responsible investment policy.

Score: 5 points

4.26.9 Reporting on responsible investment policy

PFZW reports on its responsible investment policy and activities in the annual responsible investment report of its asset manager (PGGM Verslag Verantwoord Beleggen). Its activities are further reported on in its quar- terly report. PFZW’s website also contains information on the investments in funds, equity, publicly traded bonds and private equity.

Score: 5 points

PFZW published a detailed overview of its holdings within multiple categories and also reports on the applied instruments and results.