Engagement policy

Checked on 23 December 2021

Engagement policy

Philips Pensioenfonds has a specific engagement policy for companies that, for example, violate international guidelines for corporate social responsibility (according to Global Compact, OESO or UNGPs). That policy aims to remedy or reduce these violations. The pension fund applies that policy to remedy or minimise the breaches, by informing the company that it considers these breaches to be undesirable and demanding that the company make improvements to remedy them. If the engagement does not lead to the desired change, Philips Pensioenfonds can exclude that company from its investments.

How the engagement policy take shape in practice

The asset manager has hundreds of discussions every year with numerous companies in which Philips Pensioenfonds invests, representing not only Philips Pensioenfonds but also many other clients. This helps to maximise the impact of the discussions. Visit BlackRock’s website to find out more about this ‘engagement’ by the asset manager. There are, among other things, these principles that are used in engagement. In some cases, discussions are held with companies that are in breach of the international guidelines for corporate social responsibility (according to Global Compact, OESO or UNGPs). Those companies fall within the scope of Philips Pensioenfonds’s specific engagement policy.

Philips Pensioenfonds does not have endless patience: for each guideline that is severely breached, a deadline is established by which the company must make visible improvements. Annual reviews are conducted to decide whether it serves any purpose to continue the engagement. Philips Pensioenfonds uses an external data provider to identify companies that severely breach the international guidelines, and for reviewing whether the company has improved sufficiently.

Philips Pensioenfonds periodically assesses the engagement policy and its implementation. The purpose of this is, among other things, to keep the agreement with the asset manager up to date. In this assessment, the Fund also includes to assess whether the agreement complies with new laws and regulations, including SRD II. As a result, Philips Pensioenfonds assesses whether the engagement policy and the information on the website require adjustment. For more information, see also the detailed description of the Responsible Investment policy (in Dutch, Declaration of Investment Principles).

Report on the engagement policy

Philips Pensioenfonds publishes information on its website every quarter about how it has given shape to its engagement policy.

Further information on voting and engagement can be found on the BlackRock website, such as the broader approach to engagement on prioritized topics (see Principles and Guidelines) and an extensive explanation of engagement and voting at individual companies (see Vote Bulletins).

2021 - Q3
In the context of the engagement policy for violations of international guidelines, discussions were held in the third quarter with 2 companies in which Philips Pensioenfonds invests. These companies are both listed in the United States. Human rights were discussed. Currently, 6 companies are excluded under this policy.
In addition to these discussions, other topics and with other companies were also discussed. For information about engagement per company, click here to view the equity investments (in Dutch). Click here to find whether the company has been spoken to and what the topic was.

2021 - Q2
In the context of the engagement policy for violations of international guidelines, discussions were held in the second quarter with 6 companies in which Philips Pensioenfonds invests. These companies are successively listed on the stock exchange in Italy, Australia, Brazil and the United States. Product safety and quality, the environment, human rights, labor rights and fraud and corruption were discussed. Currently, 6 companies are excluded under this policy.
In addition to these discussions, other topics and with other companies were also discussed. For information about engagement per company, click here to view the equity investments (in Dutch). Click here to find whether the company has been spoken to and what the topic was.

2021 - Q1
In the context of the engagement policy for violations of international guidelines, discussions were held in the first quarter with three companies in which Philips Pensioenfonds invests. These companies are listed successively on the stock exchange in Italy, Germany and Brazil. Product safety and quality, the environment and human rights were discussed. Currently, 7 companies are excluded under this policy.
In addition to these discussions, other topics and with other companies were also discussed. For information about engagement per company, click here to view the equity investments (in Dutch). Click here to find whether the company has been spoken to and what the topic was.

2020 - Q4
In the context of specific Global Compact engagement, discussions were held in the fourth quarter with seven companies in which Philips Pension Fund invests. These companies are listed consecutively in Australia, Canada, China, Germany, the United Kingdom, the United States and Switzerland. Workers' rights, fraud and corruption, human rights, and the environment were discussed. At the moment 7 companies are excluded based on this policy.

2020 - Q3
In the context of specific Global Compact engagement, discussions were held in the third quarter with four companies in which Philips Pension Fund invests. These companies are listed consecutively in Australia, Germany and the United States. Workers' rights, human rights and the environment were discussed. At the moment 7 companies are excluded based on this policy.

2020 - Q2
In the second quarter, discussions were held with three companies in which Philips Pensioenfonds invests in the context of specific Global Compact engagement. These companies are listed on the stock exchanges in the United States, the Netherlands and Brazil. Fraud and bribery, human rights and the environment were discussed. Currently, 7 companies are excluded under this policy.

2020 - Q1
In the context of specific Global Compact engagement, talks were held in the first quarter with two companies in which Philips Pensioenfonds invests. These companies are listed on the stock exchanges in the United States and Brazil. Working conditions, human rights and the environment were discussed. Currently, 11 companies are excluded under this policy.

2019 - Q4
In the context of specific Global Compact engagement, talks were held in the fourth quarter with three companies in which Philips Pensioenfonds invests. These companies are listed on the stock exchange in Germany, the United Kingdom and the United States. They discussed working conditions, human rights, corruption scandals and the environment. 11 companies are currently excluded based on this policy.

2019 - Q3
During the third quarter, specific Global Compact engagement took place with four of the companies in which Philips Pensioenfonds invests. The issues discussed with the companies, which publicly trade in Germany, The Netherlands, United Kingdom and United States, were human rights, corruption scandals and the environment. At present 11 companies are excluded under this policy.

2019 - Q2
During the second quarter, specific Global Compact engagement took place with four of the companies in which Philips Pensioenfonds invests. The issues discussed with the companies, which publicly trade in Germany, Australia, Canada and Brazil, were human rights and the environment. At present 11 companies are excluded under this policy.

2019 - Q1
During the first quarter, specific Global Compact engagement took place with one of the companies in which Philips Pensioenfonds invests. The issues discussed with that company, which publicly trades in both Australia and the UK, were human rights and the environment. At present 12 companies are excluded under this policy.

2018 - Q4
During the fourth quarter, specific Global Compact engagement took place with four of the companies in which Philips Pensioenfonds invests. The issues discussed with the companies, which publicly trade in Australia, Canada, Germany, and the UK, were human rights, the environment and anti-corruption. At present 12 companies are excluded under this policy.

2018 - Q3
During the third quarter, specific Global Compact engagement took place with one of the companies in which Philips Pensioenfonds invests. The issue discussed with that company, which publicly trades in the UK, was human rights. At present 12 companies are excluded under this policy.