Transcript PMT en UN Principles of Responsible Investment

Mn Services:
Responsible Investment for Pension Funds
Kris Douma
Head of Responsible Investment Support & Active Ownership
Mn Services
Bangkok Investor Workshop 19-1-2009
Bangkok Capital Markets Day 20-1-2009
Introduction
• Kris Douma, trade union (1987-2001), MP (2002-2006) and now working
at Mn Services
• Mn Services is a pension administrator and asset manager
• Clients: more than 10 Dutch pension funds and 2 insurance companies
• Industry: like PMT, PME, MITT and Koopvaardij
• Company, like VOPAK, FORBO, Nutreco and SCA
• more than 700 employees and almost €60 billion AUM
Background Responsible Investment
• Long history: South Africa, weapons
• Trade unions, revival of attention since late 90’s, leading to growing
awareness at pension fund boards
• Recently: management of ESG-risk’s (environment, social, governance)
as part of fiduciairy duty
• Zembla broadcast on Dutch TV: public opinion (APM’s, clustermunition,
child labour, environment)
• Growing number of pension funds signing UN PRI
Implementation of UN PRI:
A first step: what is responsible?
• UN PRI operationalisation in ‘guiding principles’:
• Business strategy: ICGN Global Corp. Governance Principles a.o.
• Corporate governance: ICGN Global Corporate Governance Principles,
OECD Principles of Corporate Governance, code Tabaksblat a.o.
• Human rights: UN Global Compact
• Labour standards: UN Global Compact (core labour standards ILO)
• Environment: UN Global Compact
• Anti-Corruption: UN Global Compact
• Investment nexus: OECD-Guidelines MNC’s
• Disclosure: PRI
Implementation of UN PRI:
From principles to practice!
• 4 pillars: integration, exclusion, thematic and active ownership
• Some examples:
• Integration ESG in selection of Hedge Funds
• Exclusion of companies with non compliant products (APM/Cluster)
• Integration of ‘guiding principles’ investment management agreements
• Active Ownership: voting, dialogue and class actions
Voting Policy
• Recall of all voting rights from external managers, now voting 2000
companies
• Starting 1-1-2008 customized voting policy, based on ‘guiding principles’
• Rhineland perspective (more than 50% independent non executives, no
combined CEO-Chairman, against remuneration policy with system risks
• Extensive voting instructions for shareholder resolutions: core labour
standards, consultation employees, favourable to environment etc.
• Recall of securities, and also voting 50% in blocking markets
Active ownership at home market (Eumedion)
• Coöperation in Investor Platform Eumedion
• AGM Fortis August 2007: major Dutch pension funds voted against take
over of (parts of) ABN AMRO
• Mn Services: 2008 5 AGM’s of AEX: Akzo Nobel; ArcelorMittal;
Heineken; Unibail Rodamco and USG People
• Mn Services gives Power of Attorney to other Eumedion-members for
approximately 15 AEX-companies (Philips, Shell a.o.)
• Robeco, representing Mn Services clients succesfully voted against
remuneration policy Philips
Active ownership and high ESG-risk companies
• Annual report AkzoNobel: “An unidentified risk is a threat, an identified
risk is a management issue”
• Companies that are non compliant with Global Compact are either
excluded or part of programme of dialogue
• Internal programme, contract F&C, participation in UN PRI
Clearinghouse
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Managing ESG-risks: some examples:
Wal-Mart
PetroChina => Soedan
Lundin Petroleum
Strategic active ownership
• Active ownership as a means to influence risk return profile
• Repsol: stake in Gas Natural, EITI a.o.
• Punch Taverns: wrong timing of take over
• Engaging regulators (Eumedion, situation at Continental in Germany)
• Class actions programme
Responsible Investment for Pension Funds: hype or
here to stay?
• The current financial crisis
• will lead to growing awareness of importance of managing risks, ESGrisks included
• will lead to growing and continued public attention, both from employees
and pensioners
• as well as from the public at large
• RI is here to stay!