APG Asset Management, the wholly-owned fund manager of the Dutch civil service pension fund ABP, has detailed the 19 companies it excludes from its portfolio – as well as outlining its plans to develop a formal environmental, social and governance (ESG) strategy for each asset class.
The exclusions (see list below) are due to the companies’ links to cluster bombs and landmines, and are disclosed in APG’s new Responsible Investing Report for 2009.
The report also reveals that APG, which has €250bn in assets under management, plans to develop a formal policy surrounding environmental, social and governance factors for each asset class in 2010.
This will be driven by the need for institutional investors to screen investments for ESG issues from purely a financial perspective, APG says.
“New projects will be undertaken to integrate ESG factors into the portfolio and enhance the quality of the portfolio in terms of ESG issues,” the report states. “APG will continue to look for investment opportunities that meet its criteria for financial returns while tackling issues such as climate change and poverty and will continue to press for an international approach to such issues.”
During the year APG made investments in wind farms, hydroelectric power stations, solar power and energy saving technologies.
Among them was a $10m commitment to Brazilian biofuels developer Biogreen Oil, a €12.5m investment in the International Fund for Health in Africa and funding of the Spremberg wind farm in Germany via the Ampere Equity Fund. It has invested in China’s Longyuan and Australia’s Infigen, their countries’ largest wind farm developers.APG revealed that in late 2009 it and several other investors visited a large Shell tar sands project in Alberta, Canada. It will continue to pay close attention to the issue – adding that shareholder resolutions at the BP and Shell annual meetings earlier in 2010 were “based on sound reasoning”.
APG said it would consider its investment in Daewoo International over its gas operations in Burma, although it finds no grounds for divesting from France’s Total over its Burma operations. It would also look at Vedanta Resources’ mining operations in Orissa, which has caused other institutions to exit the stock.
APG’s Responsible Investing site
Alliant Techsystems (US)
General Dynamics (US)
Goodrich Corporation (US)
Hanwha (S. Korea)
Kaman Corp. (US)
Larsen & Toubro (India)
Lockheed Martin (US)
Magellan Aerospace (Canada)
Poongsan (S. Korea)