Integrating ESG information in investment decisions
In our investment process, not only financial indicators such as revenues, capital positions, or cashflow stability are important indicators. Responsible investing means we explicitly integrate non-financial criteria, ESG criteria, in our analysis, research and investment decisions. ESG is short for Environmental, Social and Governance, criteria in the area of environmental policies and behaviour, social policies and behaviour and corporate governance. In the research phase, while building a business case for investments and during the time that an investment is in portfolio, using ESG criteria gives us an extra screening of the companies and entities we invest in. With an eye for risks and opportunities.
The ESG information is supplied by an external research agency comes from various publicly available (academic) research reports and is provided by public sources such as the companies themselves, journalists and NGOs.
Engagement means entering in dialogue with the companies or entities we are invested in, about principles and expectations regarding corporate social responsibility. The aim of these dialogues is to influence the (sustainability) behaviour of these companies. While engaging, we do not exclude these companies from our investment universe.
Delta Lloyd believes in a constructive dialogue. Regularly, we enter into dialogue with the companies that we visit and analyse. In doing so, we use our strength as an active shareholder, specifically within the investments in our participation funds. We want to work together with these companies, to improve their performance both in the short term and in the long term.
Delta Lloyd is a member of Eumedion. This is a platform representing institutional investors' interests in the field of corporate governance and related sustainability performance of Dutch listed companies. As a member of Eumedion, Delta Lloyd operates in line with its 'best practices for engaged share-ownership'. Where appropriate, we work together with other investors in dialogues with companies.
Voting at General Shareholders's Meetings
Delta Lloyd will excercise its voting rights in the interest of the insured and other beneficiaries, in as many general shareholders's meetings as possible of listed companies, in which Delta Lloyd holds an interest of 5% or more (in terms of control), or in which Delta Lloyd holds an interest of € 10 million or more (in terms of capital).
We use our voting rights to influence a given company's policies and we strive to promote value through responsible, consistent and transparent voting behaviour. We will cast an informed vote.
Delta Lloyd publishes its votes on selected topics on our website after each general meeting we attend. In addition, we mention relevant developments in the context of the voting policy in our annual report. By executing this strategic form of responsible investing, Delta Lloyd also contributes to the promotion and acceptance of the United Nations Principles for Responsible Investment (UN PRI).
Click here for the voting policy documents.
Excluding companies from investment
Delta Lloyd assesses companies's involvement in controversial business practices and excludes companies that demonstrate the worst ESG practices. Other exclusions can be based on laws and regulations, or on the identification of subjects or themes that are judged as controversial by society. Ethical or moral motives are examples of this last reason for exclusion.
Delta Lloyd excludes companies that repeatedly or seriously violate the UN Global Compact Principles as well as companies that are involved in the production of, or trade in clusterweapons, chemical weapons, biological weapons, anti personnel mines, nuclear weapons, ammunition with depleted uranium or ammunition with white phosphorus.
On a separate webpage we publish the lists of excluded companies each quarter, both for the companies violating the UN Global Compact principles and for companies involved in controversial weapons.
It is called impact investing if investments in projects, companies or countries are based upon social or ethical motives and these investments specifically aim to realize positive social or environmental returns next to financial returns. Impact investing is often concerned with people or populations who have a hard time providing for their basic needs. It is for instance investing in education, health care, affordable or social housing, (micro)credit facilities. But it can also mean investing in nature, infrastructure or culture.
Delta Lloyd participates in the "VerzekeraarsVersterken" programme of the Dutch Association of Insurers. Amongst others we have invested in Qredits Microfinancing Netherlands, an independent and private non-profit credits lender, aiming to help starting and existing entrepreneurs with successfully (re)starting their business.
For years now, we have been partner of Stadsherstel Amsterdam, a corporation with social objectives. It saves monuments and other iconic buildings by carefully restoring them, finding a suitable destination for them and putting them up for rent. In this way we contribute to a good state of maintenance of real estate heritage for the generations to come, to the accessibility of monuments and to the preservation of the craft of restoration.
Promoting sustainability policies and behaviour of companies
In the spirit of the UNPRI, Delta Lloyd supports initiatives in the field of responsible investing and stimulates the development of widely accepted sustainable frameworks.
We have (co)signed the following initiatives and principles:
- UN Principles for Responsible Investment
- UN Global Compact Principles
- UN Principles for Sustainable Insurance
- Carbon Disclosure Project
- Access to Medicine Index
- Global Investor Statement on Climate Change
Additionally, we are a member of (inter)national platforms and organisations that stimulate sustainability, such as Eumedion, the Dutch Association of Investors for Sustainable Development (Vereniging voor Beleggers in Duurzame Ontwikkeling (VBDO)), the Dutch Association of Insurers (Verbond van Verzekeraars) and the Dutch Association of Securities Owners (Vereniging van Effectenbezitters (VEB)).
In our dialogue with the companies we are invested in, we ask for standardisation of their sustainability reporting. This can be achieved by following for instance the Global Reporting Initiative guidelines, in a separate sustainability report. It is also acceptable to us if this is done within the context of the regular (financial) reporting.