Expertblog
ABP on extra-financial information
Strategic Investment Plan 2007-2009
In the recently launched “Strategic Investment Plan 2007-2009”, ABP announced that extra-financial information will be integrated more explicitly in its mainstream investment processes. Starting in 2007, ABP will employ this information into two internally managed equity portfolios, representing a joint value of 22 billion euro. In later years, ABP will broaden this effort to other asset classes like fixed income and real estate. ABP believes that giving more attention to environmental, social and governance criteria in its investment processes will, in the long term, contribute to returns and reduce risks of its investment portfolio. However, fundamental research on the relationship between so-called ESG (Environment, Social and Governance) criteria and the financial performance of companies is relatively scarce.
ECCE
For this reason, ABP welcomes the fact that, via ECCE, we will have direct access to knowledge and instruments that shed new light on this relationship. We agree with ECCE’s intention to focus more on disaggregated criteria in the investment selection process, instead of just applying broad rating information delivered by commercial rating institutes. Moreover, ECCE enables us to discuss our notions on this important subject with other players on financial markets. We are particularly interested in the survey ECCE will conduct in 2007 among sell and buy side financial analysts and portfolio managers. This will give us a better understanding how these market players think about this topic, which, eventually, is pertinent to our decision making process.
Summarizing: ABP is happy to“engage” with ECCE by sponsoring the research platform and active participation in ECCE’s activities.
Roderick Munsters - Chief Investment Officer of ABP Investments