We apply the materiality principle in assessing what information must be included in our integrated report. This report therefore focuses in particular on those topics, opportunities and challenges that have an impact on PGGM Investments and its ability to consistently deliver value to our key stakeholders. Our material topics influence our strategy and constitute the basis for the contents of this report.

The report discusses the primary activities of PGGM Investments and encompasses the nonfinancial and financial performance, opportunities, risks and results. The nonfinancial indicators that we deem of particular material importance have been assessed by an external auditor. This concerns the material topics on the basis of which our largest client, PFZW, also manages, specifically:
Impact investing: €20 billion invested in solutions.

• Exclusions: not investing in countries and businesses that are not consistent with our standards and values and those of our clients.
• Voting: casting a well-informed vote at all shareholder meetings.
• Engagement: actively using our influence as shareholder to realise improvements in relation to ESG.
• Reducing negative impact: halving the CO2 emissions of shares.
• Legal proceedings: recovering investment losses through legal proceedings.

In putting together the PGGM Investments 2020 annual report, we followed the main points of the international reporting principles of the Global Reporting Initiative (GRI). The GRI principles relate to both substantive choices (materiality, stakeholder involvement, sustainability context, completeness) and the quality of the reporting (balance, comparability, accuracy, timeliness, clarity, reliability). In this report we did not follow the GRI literally, but wherever possible took the reporting principles designated by the GRI into account when drafting this annual report. The GRI standards do not fully apply to this annual report because it is a report on the asset management activities and does not concern the level of PGGM N.V. Alongside the GRI, we also use our own supplementary reporting criteria. The non-financial information in this report must be read and understood together with the reporting criteria. PGGM Investments is responsible for selecting and applying these reporting criteria, taking into account the applicable reporting legislation and regulations.

The report also discusses the strategic progress made in 2020 and provides insight into PGGM Investments’ strategy and progress on the financial and nonfinancial objectives for the short, medium and long term.

This report is intended in the first place to satisfy the information needs of our clients and cooperation partners. It also provides information that is relevant for the way in which we create value for other stakeholders, including our employees, the labour market, supervisory authorities and society as a whole.

PGGM Investments holds transparency in high regard and endeavours to constantly improve its reporting. We see the annual report as more than an annual review of our financial performance; it also provides a strategic outlook with a particular emphasis on relevant non-financial information. It is our ambition to continuously improve the way we report on the connection between the financial and non-financial information in our annual report. It should demonstrate how we create value as an organisation, for our employees, clients and society as a whole. Consequently, we intend to move towards the Core & More concept in the future. By incorporating this method we will present the most relevant and material information to a wide audience using one Core-report. The Core-report will be accompanied with More-reports that delve deeper into specific subjects and are aimed at specific target groups. Online reporting offers us an instrument: stakeholders are informed about the essence of our organisation in an attractive manner, and are able to navigate instinctively towards the information that is most relevant to them. As a result, the annual report will be dynamic and easily accessible to many different target groups.