APG Asset Management
APG Asset Management operates as a Dutch pension investment management firm with 7 offices globally across Europe, North America, and Asia. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 May 2022.
61% of total AUM
initially committed to be managed in line with net zero
USD $445 billion
currently committed to be managed in line with net zero
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio decarbonisation reference target
50% reduction in portfolio emissions in absolute terms.
Reduction of the absolute carbon footprint (tCO2e based on attribution using EVIC) of the equities and fixed income credits portfolios (including any real estate investments within these asset classes) by 50% between 2019 and 2030.
Portfolio coverage target
For direct real estate investments (not including any real estate investments managed within equities or fixed income credits), measurement and target setting is focused on the CRREM framework (% of portfolio aligned with CRREM pathways and average stranding year).
For infrastructure investments, measurement and target setting will be based on the percentage of assets that has established net zero targets.
GHG scopes included:
For equities and fixed income credits, the target considers Scope 1 and 2 emissions from portfolio companies. Scope 3 emissions are not included in the decarbonisation target. We will start to phase-in measurement of Scope 3 emissions in line with the schedule as denoted by PCAF as part of our CO2 emission inventory disclosure and explore possibilities to start including Scope 3 emissions in target setting.
For real estate, Scope 1, 2 and 3 (tenant energy use) has been used.
Net Zero Investment Framework
We have used the IEA Net Zero report and associated sector pathways to benchmark the target. For real estate, CRREM pathways have been used, which are based on a 1.5°C trajectory.
Proportion of AUM committed:
This percentage includes the AUM of the following asset classes: equities, fixed income credits, real estate and infrastructure. We aim to increase the percentage over time by expanding measurement and target setting to multiple asset classes, including sovereign bonds and private equity.
Policy on coal and other fossil fuel investments:
APG Asset Management excludes companies that derive more than 30% of their revenues from thermal coal mining, or 20% of revenues from tar sands extraction and/or transportation. In addition, we screen investments for any plans to expand coal-fired power generation capacity. The majority of APG Asset Management’s assets are managed on behalf of pension fund ABP, who has decided to exclude investments in companies that produce fossil fuels.
Target Setting: We will be working to further articulate portfolio coverage and engagement thresholds in further iterations of the approach. In addition to decarbonisation targets, clients of APG Asset Management have established targets based on exposure to sustainable development investments (SDIs). This might include targets on specific SDGs, such as SDG 7 (clean & affordable energy). As such, the SDI exposure contributes towards net zero investing by allowing for measuring and increasing exposure to climate solutions. This is however not currently articulated as a target.