The Sustainable Development Investments Asset Owner Platform (SDI AOP) helps investors to imbed the UN Sustainable Development Goals (SDGs) into their investment processes. We asked Claudia Kruse of APG, one of the founding members of the SDI AOP, why and how they use the data within their organization.
1. What is the reason APG subscribes and uses the SDI AOP data?
Our pension fund clients are committed to contributing to the SDGs. ABP – our largest client and the largest pension fund in the Netherlands– has set a 2025 target of 20% of its AUM being invested in Sustainable Development Investments (SDIs).
We use the SDI AOP standard, taxonomy and data in order to identify and get a steer on investments that contribute to the SDGs across the entire portfolio, which helps us to meet the objectives of our clients.
2. Why are sustainable development investments important for APG?
Ultimately, we want to be able to understand and explain the real-world utility of all our investments, first through the contribution but then also through companies’ actual sustainable outcomes. Our specific objectives are to steer capital towards solutions contributing to the SDGs in line with our clients’ sustainable investment goals and, in the future, to be able to measure and report on the portfolio’s contribution to sustainable outcomes.
3. What are the most relevant portions of the SDI AOP data for APG?
In addition to the SDI classification on the basis of current revenues, we are keenly interested in the SDI outlook, i.e. the future contribution of a company to the SDGs on the basis of its patents. Ultimately, we would want to be able also capture a company’s real-world outcomes in, for instance, metric tons of CO2 avoided, liters of water saved or number of patients treated.
4. Within APG, who uses the information?
The data has wide applicability – more than just reporting. For example, it is embedded in our data and portfolio management systems as investment strategies. It is also an important input in our allocation of intermediary goals to meet ABP’s overall 2025 objective of 20% of AUM invested in SDIs. There are many different use cases within our own organization:
- Responsible Investment (RI), Risk, Fiduciary Management and Investment Reporting for monitoring and client reporting purposes
- Portfolio managers and RI experts as a basis for engagement with companies
- Corporate Communication for internal and external reporting, including examples in the annual RI reports
5. How do you integrate the data in your systems?
It is embedded in our core data and portfolio management systems as all investment strategies make use of it.
6. To whom do you report about the SDIs and how?
APG regularly reports to its clients on progress with regard to investing into the SDGs. On an annual basis, APG and its clients report exposure figures and examples. We also regularly publish stories based on SDI case studies on our – and our clients’ – websites. We believe it motivates colleagues to make a difference through how we invest and engage.