Integrated report 2020

Appendix 2 Explanation to our materiality analysis

PGGM Investments determines annually in a structured manner what topics will, at a minimum, be covered in the annual report. We use a materiality test to do this. Assessing the material topics lays the foundation for the contents of the integrated annual report and takes place at an early stage of the reporting process. The materiality survey relies on a dual assessment: on the one hand, various stakeholder groups assess the relevance of different topics and, on the other, we assess internally what impact these topics have on the company and society.

We determined the topics on the basis of desk research in 2020. This consisted of a media analysis, research at peers and equivalent organisations, ESG ratings and sector reports. We also requested input from our key stakeholders via a survey.

The outcomes of the stakeholder consultation and the materiality were discussed with the Board of Directors of PGGM Investments. The topics that stakeholders felt were important largely correspond to the key topics that PGGM Investments works on.

The material topics are a reflection of our outputs as described in the value creation model. A material topic is not related exclusively to one of the output capitals, which means that some topics appear more than once. In the table below, we have provided insight for each output capital into the link with the material topics. The eight most relevant topics served as a guide in the process of deciding on the contents of the annual report and are addressed at length in the chapters.

Output capital	Material topics
Stable financial performance	Stable financial results
	Impact investments
	Transparency
	ESG integration
Active equity ownership	Active ownership
	Exclusions
	Reducing the negative impact of the client’s portfolio
	ESG integration
Reliable market player	Professional organisation
	Risk management
	Data & digitalisation
	Client orientation
	Fiduciary responsibility
	Strategic cooperation
	Compliance and integrity
Inclusive workplace	Good employment practices
Impactful investments	Strong health care and welfare sector
Impactful investments	Impact investments

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The original PGGM Investments annual report 2020 and its financial and non-financial statements were drafted in Dutch. This website is an English translation of the original Dutch document. In case of any discrepancies between the English and the Dutch text, the latter will prevail.

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