Responsible investment policy
We aim for excellent asset management that takes people and society into account, too. Socially Responsible Investing, where Environmental, Social and Governance criteria are specifically taken into account in investment decisions, is a fixed component of our multi-management strategy. We use the following tools to be certain that our investment solutions satisfy our ESG guidelines: screening, engagement, exclusion, and voting policy. These tools are described in our responsible investment policy.
Our ambition is for all companies in which we invest to adhere to the Global Compact Principles (GCP) of the United Nations (UN). These are principles in the areas of human rights, the environment, working conditions, and anti-corruption. The businesses in which we invest are periodically screened in relation to these principles. We use a specially qualified external party for this, Sustainalytics, which screens our portfolios annually and checks whether all companies conduct themselves in accordance with the Global Compact Principles. For more information, visit: The ten principles of the UN Global Compact.
The screening may indicate that a company fails to adhere to the Global Compact Principles. In that case, Sustainalytics engages in dialogue with the company on behalf of TKP Investments. Sustainalytics calls the company’s attention to its shortcomings and tries to persuade the company to adopt a more sustainable approach. After a period of three years, we assess whether the engagement activities have had the desired effect. If progress is insufficient, we exclude the particular company from our investment activities. The companies with which TKPI currently engages are shown in the focuslist Engagement.
In some cases, we exclude certain companies and countries from investment in advance. This applies for both actively and passively managed investment funds. We update the list of exclusions once a year.
We do not invest in companies involved in the production, development, trade or servicing of controversial weapons. According to our definition, controversial weapons include anti-personnel mines; nuclear, biological, chemical and cluster munitions; depleted uranium munitions; and white phosphorus munitions. Sustainalytics sets out all the companies directly involved in the production of controversial weapons. In addition, we do not invest in coal-mining companies that earn 30% or more of their turnover from the extraction of thermal coal. This type of coal causes serious environmental pollution.
Also tobacco-producing companies are excluded from the investment universe. This concerns companies that earn 5% or more of their turnover from production of tobacco and tobacco-related products. Tobacco use is one of the main risk factors for a number of (chronic) diseases. The negative impacts caused by smoking tobacco appear incompatible with a sustainable investment.
We exclude a number of countries based on universally recognized convictions for systematic human rights violations. Sanctions imposed by the UN Security Counsil and the European Union (such as an arms embargo) act as an indicator. The investments excluded are government bonds and other loans issued by central governments and other local and regional authorities in these countries.
- List of excluded countries (in Dutch)
The voting policy applies for all worldwide listed companies. Participants can use their voting rights during general and extraordinary meetings of shareholders. In practice, TKP Investments votes as the asset manager and authorized representative of the participants. TKPI is assisted by a proxy voting agency ISS. The voting policy is based on the policy of our proxy voting advisor: ‘ISS International Sustainability Proxy Voting Guidelines’. In principle the advice from the proxy voting agent is followed, unless there are exceptional reasons to deviate, for instance an Eumedion Alert. Because we vote as an authorized representative, our clients make use of their voting rights. This is a recommendation from the Dutch Corporate Governance Code.
In order to avoid any of conflicts of interest, votes are not cast on listed companies which are the sponsors of TKPI’s customers or listed companies that have a proprietary interest in TKPI. At present no use is made of the voting right at the shareholders’ meeting of the following companies (list is in any case reviewed annually):
See our voting report (in Dutch) for a detailed report on the votes cast.
For more information, please see our responsible investment policy document (in Dutch).