What we mean by responsible investment
Responsible investment has already been an important principle in the determination of the investment policy for many years. This concerns both good and responsible returns. For PGGM and its clients, responsible investment means consciously taking account of the influence of the environment, social factors and good corporate governance (ESG factors) in all investment activities. By agreement with our clients, seven specific focus areas were chosen:
Through our activities in the field of responsible investment, we provide for responsible, stable and good investment results that are consistent with our clients’ pension ambitions. These activities are founded on the beliefs that (1) responsible investment pays off by producing a positive risk-return profile; (2) sustainable development results in good and stable returns over the long term; and (3) capital is a driving force of sustainable development.
We use six instruments for the execution of responsible investment activities. We apply these instruments for the purpose of (1) promoting social solutions, (2) encouraging companies to make sustainability improvements, and (3) excluding companies that carry out activities that we do not want to support.