APG is a Dutch asset manager, with €459.4 billion in assets under management for more than 4.6 million participants in several Dutch pension funds (including ABP, bpfBOUW and SPW).[1]
In December 2018, APG updated its responsible investment policy. Whereas the previous policy only excluded nuclear weapon producers from countries outside the Non-Proliferation Treaty, the new policy excludes all producers regardless of their country of origin. APG’s exclusion policy states that it will not invest in controversial weapons, including nuclear weapons, cluster munitions, anti-personnel mines, chemical and biological weapons. APG excludes companies involved in the “production, development, sale and/or distribution of the core weapon system” and for specifically designed or key components.[2]
The policy applies to all asset activities, managed both internally and externally.[3]
APG uses a public exclusion list to implement its policy. The list is based on research by Sustainalytics and ISS Ethix.[4] As of January 2019, the following companies were included on the list for involvement in nuclear weapons: AECOM; Aerojet Rocketdyne Holdings; Airbus; Babcock International; BAE Systems; Bharat Dynamics; Boeing; BWX Technologies; China Aerospace International Holdings; China National Nuclear Power; China Shipbuilding Industry Company; China Shipbuilding Industry Corporation (CSIC); China Spacesat; CNIM; CNNC International; Cohort; Dassault Aviation; Ducommun; Engility Holdings; Fluor; General Dynamics; GP Strategies; Harris; Honeywell Automation India; Honeywell International; Huntington Ingalls Industries; Jacobs Engineering; L&T Finance Holdings; L&T Technology Services; Larsen & Toubro; Larsen & Toubro Infotech; Leonardo; Lockheed Martin; Moog; Northrop Grumman; Raytheon; Safran; Serco; SGL Carbon; SUFA Technology Industry; Tata Communications; Tata Power; Textron; Thales and Walchandnagar Industries.[5]
We congratulate APG for expanding the scope of their policy to cover all nuclear weapon producers and look forward to seeing a comprehensive implementation of the policy. We recommend that APG divest from the nuclear weapon producing companies in which it holds shares and bonds.
Website: https://www.apg.nl/en
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[1] APG, “APG Group N.V. 2018 Annual Report”, p. 8, available https://www.apg.nl/en/publication/Jaarverslag%20APG%202018/1070, last viewed 25 September 2019; APG, written response to Profundo dated 24 September 2013; APG, written response to Profundo dated 13 August 2014.
[2] APG Asset Management, “Responsible investment & Stewardship policy”, December 2018, p. 14, available at https://www.apg.nl/pdfs/APG%20Responsible%20Investment%20-%20Stewardship%20Policy%20FINAL_ENG.pdf, last viewed 27 August 2019.
[3] APG Asset Management, “Responsible investment & Stewardship policy”, December 2018, p. 12, available at https://www.apg.nl/pdfs/APG%20Responsible%20Investment%20-%20Stewardship%20Policy%20FINAL_ENG.pdf, last viewed 8 February 2019; APG; written response to PAX dated 11 July 2019.
[4] APG, written response to PAX dated 7 July 2019.
[5] APG, “Companies and countries excluded by APG”, available at https://www.apg.nl/pdfs/19.06.17.1c_GB_Uitgesloten_bedrijven_2019%20-engels-.pdf, last viewed 25 September 2019.