● APG has a mature and highly diversified portfolio whose value stood at €625bn at the end of 2022. Some 34% of the portfolio comprises fixed income instruments, including treasuries, credits, and debt. Equities account for 40% diversified across developed and emerging markets. The remaining 26% of the portfolio is invested into alternatives, including 8% in listed and private real estate, 7% in private equity, 4% in commodities, 4% in infrastructure, 2% in hedge funds and 1% in venture capital.

● The investment objective is to seek superior risk-adjusted real returns and outperform the benchmarks through active management over the medium to long term. Rather than focussing on a particular type of structure, APG focuses on return and move across the whole spectrum, including direct investments, funds, co-investments, club investments, joint ventures and secondaries. Its portfolio is thus spread across risk groups, sectors and regions, with the focus on stability and security of the income profile.

● ESG is key driver in APG’s investment strategy and it maintains a strong focus on adherence to the highest, industry-leading ESG standards. Throughout its investment process, it considers various ESG criteria, including climate resilience, resource efficiency, social impact and governance. Furthermore, it includes ESG-related performance targets in executive compensation to ensure accountability and alignment with sustainability goals.

● APG prioritises sustainable investments that generate favourable outcomes over the long run. In pursuit of this goal, it conducts comprehensive assessments of the societal and environmental impact of potential acquisitions, while carefully evaluating governance practices alongside traditional financial and risk criteria. Moreover, its Responsible Investment & Stewardship Policy thoroughly outlines its approach to sustainable stewardship, which serves as a guiding framework for its actions. It also adheres closely to the principles outlined in the Dutch Stewardship Code.

● APG actively addresses climate change mitigation and resilience. It views climate change as both a risk and an opportunity, investing in assets that reduce emissions and promote a low-carbon economy. Its dedicated climate steering group develops strategic investment plans integrating climate risks and opportunities. It also assesses and mitigates physical climate risks in its real assets portfolios.

● APG has contributed to developing market standards for ESG in infrastructure, including a leading role in the establishment of GRESB – the Global Real Estate Sustainability Benchmark – which is now widely recognised globally as a sustainable benchmark for institutional investors’ real estate portfolios. In its own GRESB assessment in 2022, some 100 of its infrastructure holdings took part. This represents 89% of the portfolio and APG’s score improved from 81 in 2021 to 85 in 2022, outperforming peer-led benchmarks.

● APG prioritises reporting on sustainable and green infrastructure investments to increase its transparency and accountability, relying on recognised standards such as the Global Reporting Initiative (GRI) to measure and report its environmental and social impact. Green building certification is another area where APG emphasises the importance of certified data, favouring holistic certification schemes such as BREEAM, GreenStar, CASBEE, and LEED. These provide comprehensive sustainability information, including over 100 data points per asset.