Take care of our investments

Checked on 29 April 2021

Take care of our investments

As an investor, we believe that we should also manage our investments responsibly, in other words: we should 'take good care' of our investments. This is also called 'stewardship'. Philips Pensioenfonds is convinced that this is good for society and for the value of the investments. This means that we not only monitor our investments on the return to be achieved, but also on social aspects. It also means that we enter into dialogue (engagement) with companies in which we invest and exercise our influence through our voting policy.

We will further explain these three forms of care, or stewardship, below.
 

1. Monitoring our investments

Philips Pensioenfonds sets itself the target of regularly reviewing all its investments against a selection of criteria including the environment, human rights, labour and good corporate governance. The pension fund uses external surveys by suppliers to measure how ESG-compliant the various portfolios are. This is done based on the ten principles defined in the UN Global Compact. At present, all equities, government bonds, corporate bonds and indirect real estate portfolios are reviewed.

In addition, climate change has been identified as a systemic risk with a major social impact. Due to the complexity of this problem, it is not easy to develop policies to take into account its effects. The Fund therefore first periodically measures the CO2 footprint of the portfolio and carries out scenario tests to map out the effects for the portfolio.

In the future, we not only want to measure the ESG level, but also report on this on the website. Standards are set by the EU for reporting on sustainability aspects to ensure that you receive comparable information. Philips Pensioenfonds supports this. The standards are currently being developed, which is why Philips Pensioenfonds chooses, after publication of the standards (which are expected in 2021), to assess how these standards will play a role in publications on the website. Based on the information known so far, we have prepared a statement: click here to view the statement (in Dutch).

2. Engagement

The responsible investment policy ensures that our portfolio has a more sustainable character than a portfolio that does not take social aspects into account. This does not mean that we only have 'green' investments in our portfolio. We also monitor our investments for aspects such as the environment and human rights, so that we can enter into dialogue with companies that are lagging behind on these aspects. We call this 'dialogue' or 'engagement'.

For example, companies that violate international guidelines for social responsibility (according to Global Compact, OESO or UNGP's) are eligible for engagement. If this engagement does not lead to the desired change, it can be decided to place this company on the exclusion list (see 'responsible choices'). In the way Philips Pensioenfonds executes voting rights, the results of engagements are taken into account (see 3 'Voting policy').

In addition to entering into a dialogue and exercising voting rights, Philips Pensioenfonds regularly participates in so-called class actions. In this way, the Fund takes legal action against companies that, in the Fund's opinion, have not treated their investors properly.

More information

Every quarter Philips Pensioenfonds reports on the execution of our engagement policy.

Read about engagement

3. Voting policy

Philips Pensioenfonds invests in shares. Each share entitles Philips Pensioenfonds to vote at the shareholders' meeting of the company concerned. At this meeting, for example, permission is requested from the shareholders for the appointment and subsequent remuneration of directors. By making use of its voting right, Philips Pensioenfonds can indirectly influence the quality of the management of the companies in which it invests.

By making use of its voting right, Philips Pensioenfonds can indirectly influence the quality of the management of the companies in which it invests. This can ultimately also positively influence the value of the shares and limit risks. Philips Pensioenfonds has drawn up a voting policy in order to make the best possible use of voting rights. This policy assumes that companies can only be properly managed if the management of the company is transparent and efficient supervision is carried out. The policy is in accordance with the relevant provisions of the Dutch Corporate Governance Code.

More information

Every quarter Philips Pensioenfonds reports on the execution of our voting policy.

Read about voting policy