MOMENTO III: EL PROCESO DE REASENTAMIENTO: El paso a “la Formalidad”

The pension fund metal and technology (PMT) is a sector pension fund that provides pension fund services for a large number of companies in the metal and technology sectors.

4.17.1 (Socially) responsible investment policy

PMT has a publicly available responsible investment policy. This policy is based on a number of international principles and directives such as the uN PRI, the IlO Core Conventions, and the universal Declaration of Human Rights. In 2008, PMT began to implement eight criteria that companies included in the investment uni- verse must adhere to that cover topics such as company strategy, human rights, labour rights, and the envi- ronment.

This policy contains the following elements:

• Integration of ESG-criteria into all asset classes

• Exclusions

• Voting

• Engagement

• Transparancy

• Class actions other forms of compensation

• The mandate of PMT’s asset manager Mn Services using yearly planning.

Score: 5 points

PMT has a responsible investment policy that considers social, environmental and ethical aspects and is based on various international guidelines and principles. This policy covers all of its investments and clarifies the use of instruments.

4.17.2 ESG-criteria for exclusion of investments (negative selection)

PMT has a clearly defined exclusion policy that makes a distinction between violations that occur as a result of the company’s product or its process. A company controversial product leads directly to exclusion while a controversial process first leads to engagement by PMT and then possible exclusion.

Throughout 2009, the exclusion is being expanded to products that are in violation of international agree- ments that the Dutch government has signed.

Score: 4 points

PMT has a clearly defined exclusion policy concerning various social and environmental issues, but does not have a list of excluded companies.

Description Numbers (in millions €)

Premium income €1 644

Number of participants 424 940 active participants

617 322 non-contributing participants 157 691 pensioners

Number of employees

Value of investments €28 096

Distribution among investment categories:

Bonds €15,013 53.4%

Equity €5,234 18.6%

real estate €3,874 13.8%

4.17.3 ESG-criteria for the selection of investments (positive selection)

PMT integrates ESG-criteria into all of its asset classes, but the implementation of the criteria varies. PMT has joined the Enhanced Analytics Initiative (EAI) and uses two ESG research providers for exclusion engagement activities. Its ESG policy can be found on its website and annual report, and is based upon international prin- ciples like the uN Global Compact and the OESO Guidelines.

Score: 3 points

PMT has a publicly available ESG policy and provides details into the concrete activities that it takes in order to carry out this policy.

4.17.4 Engagement

PMT’s engagement policy is geared towards companies with activities that violate PMT’s responsible invest- ment policy. This engagement can lead to possible exclusion. PMT uses a number of engagement service pro- viders such as Mn Services and F&C Investments. PMT also carries out engagement with a number of compa- nies listed on the Dutch stock exchange and a few companies in which it has a strategic holding. Engagement activities are reported for every quarter on the PMT website.

Score: 5 points

PMT has a clear engagement policy based on a number of social and environmental issues. This engagement policy is linked to possible exclusion. Reporting of its engagement activities is available on the website.

4.17.5 Voting policy

PMT makes use of its voting power for all of its equity holdings and uses its responsible investment policy as basis. There is an emphasis placed on four IlO principles (working conditions, workers’ rights, child labour, forced labour) as well as other principles concerning workers’ health and safety. This policy also takes the subcontractors and other in the value chain into account. The responsible investment policy is also imple- mented for environmental and executive compensation issues. PMT has taken part in shareholder resolutions through its service provider F&C, and in 2008 brought up its own shareholder resolution for Wal-Mart through its asset manager. Since april 2008, Mn Services has the responsibility of carrying out PMT’s voting policy. PMT’s voting record is available and updated regularly on its website.

Score: 5 points

PMT has a clear voting policy, makes use of its voting power and supports shareholder resolutions. Its voting record is publicly available and updated regularly.

4.17.6 Sustainable project financing

PMT does invest in initiatives that are part of the ‘sustainable project’ initiative, but this is not a separate investment category. These exist, rather, in its existing asset classes. Within its private equity portfolio, it invests in clean tech and renewable energy.

Score: 2 points

PMT does invest in sustainable projects, but does not provide information on projects and investment size.

4.17.7 Transparancy in outsourcing

PMT makes use of Mn Services for all of its asset management. This company manages PMT’s portfolio accor- ding to its responsible investment portfolio. Mn Services is responsible for making sure that its own asset managers adhere to PMT’s responsible investment policy.

Score: 3 points

4.17.8 Dialogue with society

PMT communicates its responsible investment policy on its website, PMT periodicals, and during meetings with its participants and employers.

Score: 2 points

PMT informs its participants and others about its responsible investment policy.

4.17.9 Reporting on responsible investment policy

PMT has a publicly available responsible investment policy. It also publishes a record of all its equity holdings, its voting policy and record as well as its engagement activities.

Score: 4 points

PMT publishes a list of all its equity holdings and reports on its exclusion, voting, and engagement activities.