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International leader

Our first priority is to maintain our position as the market leader in responsible investing. Asset management has already tackled a lot. From basic in order to system rationalization and renewal.

However, our leading position is under pressure: customers and society are demanding more speed on sustainability themes, while other investors are also taking steps in this direction.

That is why we help our fund clients to make smart choices regarding responsible investment, we work together with other large investors and we focus on digitalization. Only in this way can we become the Digital & Sustainable Investment Solutions Provider. Click on the images on the right for examples.

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July 6. 2020: Platform launched for investments in Sustainable Development Goals

APG, AustralianSuper, British Columbia Investment Management Corporation (BCI) and PGGM have established the Sustainable Development Investments Asset Owner Platform (SDI AOP). Using groundbreaking technology, the platform enables investors to rate companies on their contribution to the Sustainable Development Goals (SDGs). Set by the United Nations in 2015, these goals aim to create a better, prosperous world by addressing global issues such as clean water, good healthcare and protecting the environment.

APG and PGGM announced the establishment of the SDI Asset Owner Platform in September 2019. Recently, AustralianSuper and British Colombia Investment Management Corporation (BCI) joined the platform. Together, these parties have over US$1 trillion in assets under management.

Read more: Platform for investments in Sustainable Development Goals launched - Duurzaam Financieel (duurzaam-beleggen.nl)

August 26, 2020: First place for APG in the ranking of responsible investors

The Responsible Asset Allocator Initiative (RAAI) has analyzed how 25 leading responsible investors are coping with the COVID-19 crisis. At the top of the list is APG, which scores 100 percent on all the criteria examined.

The Responsible Asset Allocator Initiative (RAAI) – an American initiative that aims to stimulate responsible investment and investment in the Sustainable Development Goals at the largest institutions in the world – has investigated the role of the 25 frontrunners in responsible investment. Just like PGGM, APG received scores on all criteria, including encouraging companies to take social measures (even if this is at the expense of short-term profit), collaboration with other investors, and investing in Covid-19 solutions.

Read more: COVID-19: APG leads global investor ranking | APG

January 13, 2021: APG increases its stake in electric railway traffic in Europe

On behalf of its pension fund clients, APG has agreed to the acquisition of a 20.9% interest in Alpha Trains from AMP Capital. APG already has an indirect interest of 41.1% in the company acquired in 2019.

The investment in Alpha Trains, a leasing company for passenger trains and locomotives in Europe, is in line with the sustainable investment strategy. The majority of the fleet is electric and therefore contributes to lower CO2 emissions from the European transport sector.

Read more: APG increases interest in electric railway traffic in Europe | APG

January 29, 2021: APG exits Korean energy giant due to coal expansion

APG has exited from South Korean utility company KEPCO. Despite our strong objections, the company pushed ahead with plans for new coal-fired power plants. In 2020, APG sold its stake in eight companies due to plans for new or larger coal-fired power stations.

APG decided to sell its stake in the Korean Electricity Power Company (KEPCO) after the company approved the construction of new coal-fired power plants in Indonesia and Vietnam. APG has consistently opposed this intention in line with our pension fund clients' sustainable ambitions and objectives. Companies must stop planning new coal-fired power plants and have a strategy to reduce greenhouse gas emissions significantly.

Sustainability specialist Yoo-Kyung (YK) Park of APG calls it "disappointing" that it has not been possible to prevent KEPCO from the expansion plans. "The decision on the new coal-fired power plants was a litmus test; does the company want to abide by the Paris climate commitments and contribute to tackling climate change?"

Read more: APG exits Korean energy giant due to coal expansion | APG

March 4, 2021: APG supports Partnership for Biodiversity Accounting Financials (PBAF)

APG supports the Partnership for Biodiversity Accounting Financials (PBAF) on behalf of its pension fund clients. Within this partnership, financial institutions are developing a joint methodology to measure and report the impact of their investments on biodiversity. Through their investments, they can focus on the restoration and protection of nature.

PBAF is an initiative of ASN Bank and several founding partners. Today it was announced that fifteen financial institutions are joining or supporting the platform. Their joint ambition is to measure the impact on biodiversity, to communicate about this transparently and to set goals to improve their 'ecological footprint'.

Read more: APG contributes to the recovery of biodiversity | APG

March 10, 2021: 'Net-Zero' framework helps APG realize its customers' climate ambitions

With 32 other large investors, APG has published the 'Net Zero Investment Framework'. This framework offers investors practical tools for tackling climate change and achieving a carbon-neutral economy by 2050.

The Net Zero Investment Framework (NZIF) allows investors to align their portfolios with the Paris climate targets. The portfolio contributes to the goal of reducing global net greenhouse gas emissions to zero by 2050. More than 110 major investors developed the framework on the initiative of the Institutional Investor Group on Climate Change (IIGCC). APG is co-chair of this initiative.

Read more: 'Net Zero' helps APG achieve its customers' climate ambitions | APG

March 29, 2021: APG takes a new step towards a CO2-neutral investment portfolio

APG joins the Net Zero Asset Managers Initiative (NZAM). The NZAM is a group of international asset managers committed to a climate-neutral investment portfolio by 2050 or earlier. The parties that are part of NZAM together represent more than one-third (36 percent) of the total assets under management in the world.

"APG is committed on behalf of pension fund clients to contribute to the goal of the Paris climate agreement to limit global warming to 1.5 degrees," said Peter Branner, Chief Investment Officer (CIO) of APG Asset Management. "The Net Zero Asset Managers initiative fits in seamlessly with this ambition. We are therefore happy to join this initiative. I am pleased that our investment teams in all regions we operate in see climate-related investment opportunities. It is also reassuring for our clients that we can invest in this without jeopardizing the return targets." Founded in December 2020, the initiative is growing rapidly and now has 73 signatories with collective assets under management of $32 trillion.

APG and its pension fund clients already have climate targets for 2025, such as investing in renewable energy (ABP: €15 billion) and reducing the equity portfolio's carbon footprint. From the 2020 financial year, corporate bonds, real estate, and private equity (unlisted companies) will also be included in calculating the carbon footprint. Together, these investment categories account for more than half of the assets managed by APG. The aim is for customers to set climate targets in line with 'Paris' by 2022 at the latest.

Read more: APG takes new step towards CO2-neutral investment portfolio | APG

September 14, 2021: APG invests in connecting 1 million American households to fiber

APG is investing $500 million on behalf of its pension fund clients in fiber roll-out in the United States. APG will also acquire a 16.7 percent stake in the American fiber-optic company SiFi Networks America Limited (SiFi). With SiFi, APG will then set up a new joint venture to realize the connections. The collaboration ensures that more than one million households in various American cities that do not yet have access to fast internet will be connected to fiber optic.

Over the past year and a half, with so many people forced to work from home, it has become all too clear how important it is to have a stable, reliable, and fast internet connection. The new joint venture focuses mainly on those areas in the United States where other major telecom providers give little priority to fiber-optic connections. The capital injection from APG and the collaboration with SiFi helped accelerate the closing of this digital divide between different urban areas in the United States.

Read more: APG invests in connecting 1 million American households to fiber | APG

September 22, 2021: APG invests €360 million in Spanish and British green government bonds

The European green government bond market is growing steadily. In two weeks, the relative latecomers Spain and the United Kingdom have been added to the European countries that have issued a 'green bond'. APG invests €99 million in the Spanish and £224 million (€261 million) in the British bond on behalf of the pension fund clients.

So far in 2021, in addition to these two countries, Germany, Sweden and Italy also issued their first green bonds. With the issuance of the European Next Generation (NGEU) bonds scheduled for October, it looks like existing issuance records will be broken.

Sustainable impact
Green bonds are issued by companies and (semi) governments to finance climate or environmental projects. Because the publisher indicates in advance what the proceeds will be used for, it is easier to determine the sustainable impact. This makes green bonds attractive to investors. Europe leads the way to regulation and reporting for sustainable investments. The European framework (EU Taxonomy) for Sustainable Investments, which is being introduced, raises the bar even higher. The popularity of green, social, and sustainable ("labeled") bonds is evidenced by the high interest in recent issuances. In both the Spanish and UK green government bonds, investors wanted to buy far more bonds than were available.

Read more: APG invests € 360 million in Spanish and British green government bonds | APG

September 30, 2021: APG supports initiative to better assess private equity sustainability

Several significant private investment funds and investors are launching an initiative to similarly report on the sustainability of private equity investments. With the initiative, the participating parties, including APG, want to increase the quality, availability, and comparability of ESG data. Ultimately, this should promote sustainability in the private equity industry.

The ESG Data Convergence Project is the first collaboration between private investment funds and investors in these funds to standardize reporting on sustainability (ESG: environment, social & governance). Several major players have joined the initiative, led by CalPERS, the United States' largest pension fund, and global private investment firm Carlyle. The founders, who together manage approximately €3.5 trillion, are calling on other funds and investors to join. The more organizations report similarly, the better the private equity industry can collect valuable data and promote sustainability.

Read more: Sustainability of private equity can now be better assessed | APG

October 4, 2021: APG invests in responsibly managed FSC forests

On behalf of pension fund client ABP, APG is taking a substantial interest in Wenita Forest Products, the largest producer of forest products in the New Zealand region of Otago. The forest area covers 30,000 hectares and is certified according to the FSC standard. This means that in an area more than three times the size of the province of Utrecht, the conservation of biodiversity and the economic and social well-being of local communities and employees are paramount. APG is further expanding its investments in responsibly managed forests with the acquisition.

Wenita is one of the largest owners of production forests in New Zealand and has been supplying local and international markets for thirty years. Because the company has so much experience with responsible forest management, it also provides advice and guidance on this method to other forest owners. Radiata pines mainly grow in Wenita, used primarily in furniture, building materials for houses, veneer, and plywood.

Like many pension fund participants, APG and ABP are also concerned about the climate. Climate reports from the International Energy Agency and the UN Climate Panel (IPCC) clearly show that global warming is still going way too fast. Globally, about 15% of greenhouse gas emissions are caused by deforestation.

Read more: APG invests in responsibly managed FSC forests | APG