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9.1 About this report

In this annual report, the Executive Board of APG Group NV renders account for the company’s financial and non-financial results in the financial year 2021, which runs from January 1 through December 31. The annual report has been prepared in accordance with the Dutch annual reporting rules. The Executive Board renders account for the core activities performed by APG, both in the Netherlands and via its international subsidiaries. APG is based in Heerlen and Amsterdam and has subsidiaries in New York and Hong Kong, as well as satellite establishments in Brussels, Shanghai, and Beijing.

Sustainable long-term value creation 

APG comprehensively reports on its vision of long-term value creation and the associated strategy and plans. The value creation model shows how our core activities create value for our stakeholders: clients, staff, and shareholders, as well as for society as a whole. 
The basis for our value creation is summed up in our mission statement: “Building your sustainable future together.” Our core values show that APG is about pensions, about people, about life, and about living together. We want to make a difference so that we, our parents, and our children are ensured a good income today, tomorrow, and beyond.

The building blocks for creating value are the activities we carry out for our clients – the pension funds for which we work. Our clients have entrusted us with the administration of and with communicating about their pension schemes and managing their assets. In line with this we provide advice and help participants become financially fitter. It is to a significant extent due to our specialized staff and our high degree of innovation and information technology that we are able to do so. This and our sophisticated automation processes enable us to make a significant contribution to value creation. Our networks and collaborative ventures are essential for us as a knowledge company. Being a major social organization, we also need a healthy and solid financial basis. We regard our efforts in the area of sustainability as extremely important and relevant.

This annual report is based on the guidelines of the Value Reporting Foundation and the Global Reporting Initiative (GRI). The framework provided by the International Integrated Reporting Council has been implemented in full. The key indicators for measuring our added value and using this value as a yardstick are set out in the chapter “The World of APG.” The GRI content index, additional sustainability information, and information about our staff are addressed in the appendices.

APG publishes a Responsible Investment Report, in which we explain our client’s investment policies and the drive towards greater sustainability of our investment portfolio in more detail. The report also describes our progress in terms of the Sustainable Finance Disclosure Regulation (SFDR) and the Covenant on International Socially Responsible Investment for Pension Funds (Convenant Internationaal Maatschappelijk Verantwoord Beleggen Pensioenfondsen).


This annual report contains outlooks and other views on future performance and results, which are based on current expectations and assumptions regarding developments and other factors which affect APG. The actual future performance and results may differ materially. This disclaimer fully applies to all future-oriented statements included in this report. The original financial statements were drafted in Dutch. This document is an English translation of the original. In case of any discrepancies between the English and the Dutch text, the latter will prevail.

9.1.1 Engagement with our stakeholders

This annual report is primarily intended for our key stakeholders. These are the parties that directly impact our strategy and core activities. Just as in 2020 these include our clients (pension funds and the employers and participants registered with them), our employees, and our shareholders. Apart from this core group we consider as stakeholders legislators and regulators, our strategic partners, and the companies in which we invest. Within this wider group we play an important role as a social organization. We constantly reflect which other organizations or institutions may be considered as stakeholders.

We regularly consult with all our stakeholders. This dialogue continued even during the pandemic, so that we were constantly aware of what moved them. Below, we provide a brief overview of how we engage with our stakeholders. Clients

Eight pension funds, and their directors, served by APG

APG closely engages with the pension funds, both formally and informally. We hold intensive consultations with them about the above-mentioned material themes. Although particular attention is given to the key strategic theme “Pension of the Future,” we also discuss other topics which are relevant to the pension funds for the implementation of their policies, such as regulation and international developments. For instance, we pool our knowledge through our client teams and share this with the pension funds.

Employers registered with these eight pension funds

We engage on a daily basis with employers registered with these pension funds. This takes place in the form of personal visits, video calls, by phone, and via email. We offer them support where they offer the pension scheme as a term of employment or, additionally, as part of their staff policy.

Participants accruing pension via these eight pension funds

We engage with the participants accruing pension via the funds on a daily basis through our Client Contact Center or by phone, email or chat. After each engagement, the client is asked to rate the contact. We also conduct regular surveys and test our products via client arenas and client validations. The outcome of these is used to make improvements. Staff


In addition to scheduled contacts such as board meetings, we also engage on an ad hoc basis with our directors, for instance during the periodic senior leadership event. These talks primarily focus on strategic topics and strategy progress. 


Our managers play an important role in the process of translating the strategy into the goals to be achieved. They ensure that the teams work well together, motivate them, and help the team members attain the team goals. Managers are assisted in this by a tailor-made leadership program. 


We hold work and team meetings with our employees and regular meetings with the managers. Via (global) online Townhalls employees are updated on important developments within APG. We periodically discuss with the management and staff our efforts to increase the sustainability of our own operations, also with regard to office accommodation and business trips. These discussions help us to reinforce the foundations of APG’s long-term value creation. Staff are also kept informed via the intranet, in the form of news bulletins, blogs, and vlogs.

Works Council

There are regular consultations with the Works Council. In addition, there are consultative meetings between the Works Council and the Management Board. Twice a year a general consultation is held, which is also attended by the Supervisory Board, and which addresses the course of affairs within APG. Among the topics that are discussed are requests for recommendations and consent. Other topics include staff development and wellbeing, and strategy. Negotiations on terms of employment are conducted with the labor unions. Shareholders

Our shareholders are Stichting Pensioenfonds ABP (92.16% of the shares) and Stichting SFB (7.84% of the shares). In addition to the annual General Meeting of Shareholders, there are half-yearly meetings at which the remuneration, governance, strategy, dividends, and the annual report are discussed. Current developments are discussed with the shareholders every three months. Strategic partners

With several parties APG has established long-term co-operations. With each of these partners we hold bilateral business consultations. The content of these meetings depends on the nature of this co-operation. Parties in which APG invests

Via our portfolio managers we engage with the parties in which we invest. Our leading long-term investment strategy is a major topic in meetings with their management. This is discussed in more detail in our Responsible Investment Report.

9.1.2 Materiality analysis

As part of the stakeholder analysis APG’s 2020 annual report included a materiality matrix. This matrix helps us to ensure that APG’s strategy, policies and accountability are in line with the expectations, requirements and needs of our stakeholders. In 2020, a survey was conducted among our internal and external stakeholders. This survey was based on an extensive analysis of 20 material topics. The survey revealed the seven topics that our internal and external stakeholders consider the most important. 

We updated the materiality analysis in 2021, based on developments and discussions that had occurred in the course of the year and the topics addressed during the dialogue with the stakeholders. We carried out a media assessment to identify the topics in respect of which APG had made the news. We also conducted a number of interviews with internal stakeholders.

The two material topics, “Contributing to a future-proof pension system” and “Transition to the new pension contract,” were combined into one topic: “The new pension system.” This makes it easier for us to position the developments regarding the new pension system and prevents overlap. This combination also made it possible to add “Digital security and privacy” to the topics. 

  • Controlled pension administration
  • Responsible investing
  • Highest net result
  • The new pension system
  • Pension trust
  • Offering grip on income for today, tomorrow, and beyond
  • Digital security and privacy

These material topics are related to our five strategic building blocks, which are discussed in the chapter “Our ambitions and strategy” of this annual report. 

The results of the qualitative update were discussed in and validated by the Integrated Reporting project team. The selection of the top seven materials topics was validated by the Executive Board and received a positive recommendation from the Audit and Risk Committee.

9.1.3 Best-efforts obligation under the Climate Agreement

Apart from the material themes listed above, the Greenhouse Gas Protocol (GHG Protocol) and the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) constitute an important part of our integrated accounting system as well. Via our external disclosures we are transparent about the manner in which we promote the financial industry’s best-efforts obligation to implement the Climate Agreement. We again emphasize our climate objectives. By 2030, we want our operations to be climate-neutral and the assets we manage to be in line with the Paris agreements. By 2050, the net emissions of the investment portfolio we manage will be zero. This is discussed in more detail in the chapter “Our present and future world,” as well as in the appendix “Other sustainability information,” and in the Responsible Investment Report.

9.1.4 Reporting process

Within the Executive Board, it is the Chief Finance & Risk Officer (CFRO) who owns the annual report. The CFRO has entrusted the preparation of the report to the Group Finance Director. The latter has put together a steering group representing the principal departments within APG. Meeting once a month, the steering group determines the principles, structure, synopsis, and content of the annual report. The report is compiled on the basis of interviews held with the Executive Board and various key persons, as well as written input and reports. A project team supervises the preparation of the report.

The data is gathered based on the regular reporting process within APG. By integrating the risk management in the primary processes as well as in the reporting process, the reliability of both the financial and non-financial data is guaranteed. In this way, we ensure that the data included in the report is accurate. During the business plan cycle, indicators are determined for the performance of the key strategic topics. These indicators are periodically used as a yardstick via the performance reports. These are discussed via the performance dialogue organized across all levels of the organization.

The Supervisory Board’s Audit and Risk Committee is actively involved in reviewing the texts of the report. The content of the annual report is ultimately adopted by the Executive Board.

9.1.5 Scope and degree of assurance provided by the auditor

APG asked its external auditor, KPMG, to audit or review the external disclosures. The degree of assurance applicable to the disclosures is presented below.

  • KPMG audited the (consolidated) financial statements for 2021 of the annual report. On March 8, 2022, KPMG issued an unqualified audit opinion on the (consolidated) financial statements. The audit opinion is included in chapter 7, “Other information”.
  • For the first time, the audit also explicitly focused on 10 non-financial data. On March 8, 2022, KPMG issued an opinion providing a limited degree of assurance in respect of this non-financial data. This audit opinion has been implemented hereafter.

The scope of the audit opinion on non-financial information will be further widened in the years to come. We have made arrangements with the auditor about the steps that must be taken to obtain an integrated report in 2024, in respect of which KPMG will provide a reasonable degree of assurance about financial and non-financial data.

9.2 Report on non-financial information

Non-financial information

We defined 15 performance indicators which are applicable to our operations. These indicators reflect the added value created by adopting the framework published by the Integrated Reporting Council.

Non-financial KPIs 2021 2020
In scope    
Reputation score 71.6 72.6
Net result € 78 million € 42 million
Excess return (5 years) in basis points 54 45
Return on equity 19.5% 10.7%
Carbon footprint of operations (in metric tons) 7,218 8,173
Benchmark UN Principles for Responsible Investment A+ A+
Gender diversity % 64 / 36 65 / 35
Number of employees 3,193 3,085
Sickness absence 3.5% 3.6%
Employee engagement 7.6 7.8
Out of scope    
Average price per participant 70.30 66.30
Participants with insight into their income for later 1,995,000 1,965,000
Participants with insight into pension assets 1,040,000 1,015,000
Net promoter score +3 -1
Assets managed in Sustainable Development Investments € 112 billion € 91 billion

In 2021, our external auditor reviewed 10 performance indicators. In 2020, the auditor had reviewed only the items “Net result” and “Return on equity” in the audit’s report on the financial statements.

Assurance report of the independent auditor

KPMG has issued a separate assurance report on the non-financial information with this annual report. This report provides a limited degree of assurance with respect to the 10 performance indicators applicable to this information in 2021. The external auditor reviewed these 10 elements on the basis of the dossiers of these indicators specified by Group Finance. The report is included below. 

9.3 Connectivity matrix

The connectivity matrix shows in detail how we govern our organization in an integrated manner, with the aim to create the envisaged value for our stakeholders.


9.4 GRI content index

The GRI Index reflects how we implement the 10 principles of the UN Global Compact. By adding the four UN development goals embraced by us – no poverty, reduced inequality, climate action, and partnerships – we emphasize how our mission and goals lead to the desired value creation through an integrated approach. 

Organizational profile
GRI 102-01 Name of the organization APG Groep N.V.
GRI 102-02 Primary activities, brands, products, and/or services Annual Report – Accounting policies
GRI 102-03 Location of headquarters Annual Report – Accounting policies
GRI 102-04 Number of countries where the organization operates Annual Report – About this report
GRI 102-05 Ownership structure and legal form Annual Report – Accounting policies Scope en reikwijdte
GRI 102-06 Markets served Annual Report – Who we are and what we do
GRI 102-07 Scale of the reporting organizations Annual Report – The world of APG (3 visuals: 1, 2, 3)
GRI 102-08 Composition of the workforce Annual Report – Other personnel information
GRI 102-09 Description of the supply chain Annual Report – Financial statements (Costs of outsourced work and other external costs)
GRI 102-10 Significant changes during the period under review None
GRI 102-11 Explanation of application of the precautionary principle by the reporting organization Annual Report – Risk Management
GRI 102-12 Externally developed economic, environmental, and social charters, principles endorsed by the organization Annual Report – APG en de ontwikkelingsdoelen van de Verenigde Naties - About this report - APG’s human rights policy
GRI 102-13 Memberships of associations (industry associations) and domestic and international interest groups APG is, either as APG Group or through its subsidiaries, affiliated with a wide range of associations and interest groups. Examples include the Dutch Fund and Asset Management Association, Global Real Estate Sustainability Benchmark, Vereniging van Institutionele Beleggers in Vastgoed, Nederland, Eumedion, Climate Action 100+, Council of Institutional Investors, and the Investor Leadership Network.
GR 102-14 Statement from the organization’s senior decision maker on the relevance of sustainable development to the organization and its strategy. Annual Report – Foreword
GRI 102-15 Disclosures on key impacts, risks, and opportunities. Annual Report – Our world of today and tomorrow
Ethics and integrity
GRI 102-16 Disclosure on the organization’s values, Annual Report – Corporate Governance
GRI 102-18 The organization’s governance structure Annual Report – Corporate Governance
Stakeholder engagement
GRI 102-40 List of stakeholder groups that the organization has engaged Annual Report – What do our stakeholders consider important
GRI 102-41 Employees governed by collective bargaining agreement Annual Report – Other personnel information
GRI 102-42 Principles for identification and selection of stakeholders Annual Report – What do our stakeholders consider important
GRI 102-43 Approach to stakeholder engagement Annual Report – Engagement with our stakeholders
GRI 102-44 Key topics and concerns raised in consultations with stakeholders Annual Report – Materiality analysis - What do our stakeholders consider important
GRI 102-45 List of entities included in consolidated financial statements and not covered by this report Annual Report – List of equity interests
GRI 102-46 Process for defining report content and specific boundaries and principles used Annual Report – Accounting policies
GRI 102-47 Material topics defined in defining report content Annual Report – Materiality analysis
GRI 102-48 Impacts of any restatements of information provided in a previous report and the reasons behind the restatement Annual Report – Materiality analysis - About this report
GRI 102-49 Significant changes compared to previous reporting periods on the scope and boundaries Annual Report – About this report - Annual Report – Other substainability information
GRI 102-50 Reporting period to which disclosures relate. 2021
GRI 102-51 Date of most recent previous report 02-mrt-21
GRI 102-52 Reporting cycle Annual
GRI 102-53 Contact point for questions regarding the report or its content and en
GRI 102-54 The selected “In accordance with” option Our annual report was prepared in accordance with the GRI guidelines (core options) of the Global
GRI 102-55 The GRI content index for the option selected Annual Report – GRI content index
GRI 102-56 Assurance policy Annual Report – Assurance policy for non-financial information

Controlled pension administration
GRI 103 1. Boundaries per material topic Annual Report – Materiality analysis - Strategische pijlers
  2.  Management approach Annual Report - The new pension
  3.  Evaluation of the management approach Annual Report - What have we done a a pension administrator
Responsible investment
GRI 103 1. Boundaries per material topic Annual Report – Materiality analysis - Strategic pilors
  2. Management approach Responsible Investment Report
  3. Evaluation of the management approach What we have archieved with our asset management
Own indicator Benchmark UN PRI Annual Report – Sustainable Development Goals
Own indicator Sustainable Development Investments Annual Report – Sustainable Development Goals
Highest net return
GRI 103 1. Boundaries per material topic Annual Report – Our ambitions and strategy
  2. Management approach  
  3. Evaluation of the management approach Annual Report – Assets under management
Own indicator Extra return achieved above the market average Annual Report – The world of APG/Results - Excess return
The new pension contract
GRI 103 1. Boundaries per material topic Annual Report – Materiality analysis - Preparing for the new pensions system
  2. Management approach  
  3. Evaluation of the management approach  
Trust in retirement
GRI 103 1. Boundaries per material topic Annual Report – Materiality analysis - How we have applied our knowledge and skills
  2. Management approach  
  3. Evaluation of the management approach  
Own indicator Reputation score Annual Report – The world of APG/Participants
Offering grip on income for today, tomorrow, and beyond
GRI 103 1. Boundaries per material topic Annual Report – Materiality analysis - How we serve our participants
  2. Management approach  
  3. Evaluation of the management approach  
Own indicator Participants with insight into Annual Report –The world of APG/Participants
  pension assets  
Own indicator Participants with insight into Annual Report – The world of APG/Participants
  their income for later  
Digital safety and privacy
GRI 103 1. Boundaries per material topic Annual Report – Materiality analysis - Digital safety and privacy
  2. Management approach  
  3. Evaluation of the management approach  

9.5 Other sustainability information

Working on demonstrably climate-neutral operations

We are reducing our environmental impact by cutting back on our energy consumption, making fewer business-related trips, and recycling our waste. We will increase the use of renewable sources. Finally, we are compensating unavoidable emissions. In 2020, we adopted policies and measures to reduce the emissions that still need to be compensated to a negligible level by 2030.

Carbon emissions from operations

We measure the carbon footprint of energy consumption, mobility, refrigerant leakages, and waste. In 2021, APG’s gross CO2 emissions amounted to 7,218 metric kilotons (8,173 metric kilotons in 2020). This is equivalent to 2.4 kg per FTE (2.8 kg per FTE in 2020). Because we use renewable resources, our net CO2 emissions are less. APG’s net CO2 emissions in scopes 1 and 2 are subsequently compensated through the purchase of Gold Standard certificates.

In conformity with the Greenhouse Gas Protocol (GHG Protocol), the carbon footprint is expressed in terms of various “scopes.” Scope 1 emissions are direct emissions from sources owned or controlled by APG. Scope 2 emissions are indirect emissions generated by purchased energy. In accordance with the CO2 performance ladder manual, business trips with private cars and business flights are also taken into account when calculating the scope 2 emissions. Scope 3 emissions are all relevant indirect emissions (not included in scope 2) which occur in APG’s value chain. This refers for example to the carbon footprint of staff commutes.

APG charts the carbon footprint of the investment categories Shares, Corporate Bonds, Property and Private Equity. This is reported on each year in the Responsible Investment Report in accordance with the recommendations of the Taskforce on Climate-related Financial Disclosures and the methodologies used by the Partnership for Carbon Accounting Financials (PCAF) in respect of corporate investments and the Global Real Estate Sustainability Benchmark (GRESB) with respect to property investments.

Gross CO2emissions in metric ton   2021 2020
Scope 1 natural gas 1,143 814
  refrigerants 0 01
  fuels - company-leased vehicles 1,008 1,2341.2
Scope 2 electricity 43524 4,4361
  district heating 34 33
  air travel 66 407
  vehicle fuels - kilometers traveled for business purposes 81 852
  public transport - kilometers traveled for business purposes 1 482
Scope 3 waste 368 1114
  vehicle fuels - commute 153 9702
  public transport - commute 9 181.2
  wastewater 03.4 134
  water 33.4 44
Total   7,218 8,173
1 not including New York
2 not including Hong Kong
3 not including Basisweg 30
Net CO2-emissions in metric ton   2021 2020
Scope 1 natural gas 1,143 814
  refrigerants 0 01
  fuels - company-leased vehicles 1,008 1,2341.2
Scope 2 electricity 228 801
  district heating 34 33
  air travel 66 407
  vehicle fuels - kilometers traveled for business purposes 81 851
  public transport - kilometers traveled for business purposes 1 482
Scope 3 waste 368 1111
  vehicle fuels - commute 153 9702
  public transport - commute 9 181.2
  wastewater 03.4 131
  water 33.4 41
Total   3,094 3,817
1 not including New York
2 not including Hong Kong
3 not including Basisweg 30

Since March 18, 2020, virtually all Dutch staff have been working from home due to the COVID-19 restrictions. These restrictions have had the following effect on APG’s CO2 emissions:

  • The drop in our CO2 emissions was mainly the result of the decrease in emissions caused by sharply reduced mobility.
  • However, no major reduction in energy consumption was apparent because the buildings were still being heated/cooled for the staff who continued working there. These numbered some 100 employees who were present all the time, more or less all over the premises.

These factors resulted in an increase in energy emissions (gas and electricity) relative to the total emissions.

Methods for measuring CO2 emissions

APG bases most of the conversion factors on the “List of emission factors” published on In the Netherlands, APG uses green energy for its operations. This origin and source of this green energy, which is guaranteed by means of Guarantees of Origin (GOs), is European wind. When calculating the net scope 2 CO2 emissions, this energy is given an emission factor of zero. The emission figure related to commuting is an estimate. It is based on the commuting allowance the staff receives and the assumption that employees who receive a commuting allowance and who live more than 7 miles from work will commute by car. Because the commuting allowance continued to be paid during the period when staff worked from home, as from March 18, 2020, this would create a distorted picture of the emissions. It was therefore assumed, on the basis of attendance records, which commuting declined by 97.5% as from Q2.

The CO2 emissions were measured for APG Group.

Energy consumption of our premises

We use the Carbon Risk Real Estate Monitor (CRREM) methodology to obtain insight in the intensity of energy and greenhouse gases (GHG). In this context, energy consumption and, in the case of GHG, refrigerant leakages as well, are divided by the leased floor area. We want our business premises to remain below the 1.5-degree pathway of Paris and aim to achieve the 2050 goal earlier.

In 2021 we found that the GHG-intensity of our Dutch business premises in the years 2019 and 2020 had not been correctly calculated, because no account had been taken of the fact that our Dutch business premises are powered by green energy. This is guaranteed by Guarantees of Origin for European wind.

Energy intensity in kWh/m2/year   2018 2019 2020 2020 target 1.5-degree pathway 2050 target 1.5-degree pathway
Netherlands Heerlen 258 217 248 220.8  13.3
  Symphony 95 67 74 220.8  13.3
  Basisweg 30 261 203 205 220.8  13.3
US New York - - - 275.7  12.1
China Hong Kong 102 120 140 278.3  5.1
GHG-intensity in kgCO2e/m2/year   2018 2019 2020 2020 target 1.5-degree pathway 2050 target 1.5-degree pathway
Netherlands Heerlen 12 11 16 97.9  2.7
  Symphony 4 3 5 97.9  2.7
  Basisweg 30 31 27 28 97.9  2.7
US New York - - - 73.7  2.8
China Hong Kong 56 66 78 224.6  3

Separate waste collection

APG wants to reduce the residual waste it produces to no more than 10% in 2022 and to virtually 0% in 2030. In 2021, residual waste made up 18% of total waste (42% in 2020). This is equivalent to 9.3 kg of residual waste per FTE (7.8 kg of residual waste per FTE in 2020). The increase in 2021 relative to 2020 is due primarily to clearing out the former offices in Amsterdam. The resulting waste was for the most part disposed of separately. 

Waste in kg 2021 20201
Paper and cardboard 51,087 9,943
Other seperated waste 79,699 22,105
Residual waste 28,181 22,919
1 not including New York

9.6 Other staff information

  2021 2020
Male/ female ratio on December 31 Male Female Male Female
Supervisory Board 40% 60% 67% 33%
Executive Board 33% 67% 50% 50%
Board layer1 87% 13% 75% 25%
Management layer1 74% 26% 78% 22%
Sub-top1 74% 26% 76% 24%
Total (not including the Supervisory Board) 64% 36% 65% 35%
1 not including Hong Kong en New York
  2021 2020
Number of employees as on December 31 FTE Employees FTE Employees
Netherlands 2,793 2,942 2,692 2,843
Hong kong 82 82 78 78
New York 169 169 164 164
Total 3,044 3,193 2,934 3,085
  2021 2020
Number of employees as on December 31 Permanent contract Temporary contract Permanent contract Temporary contract
Male 1,899 152 1,873 126
Female 1,021 121 985 101
Total 2,920 273 2,858 227
  2021 2020
Number of employees as on December 31 Full-time Part-time Full-time Part-time
Male 1,769 282 1,746 253
Female 600 542 560 526
Total 2,369 824 2,306 779


9.7 Glossary

Controlled pension administration: a robust, cost-efficient, and future-proof pension; in processes and systems.

Benchmark UN Principles for Responsible Investment: the United Nations supports an international network of investors who collaborate on implementing the six principles for responsible investment. A reference framework provides insight in the consequences of sustainability for investors.

Offering grip on income for today, tomorrow, and beyond: helping participants get a grip on income for today, tomorrow, and beyond, among other things by providing overviews and insight through advice and coaching propositions.

Breaam: Building Research Establishment Environmental Assessment Method, a certification method for a sustainably built environment.

CO2 emissions: the release of carbon dioxide into the atmosphere.

Carbon footprint: annual calculation which gives insight in the amount of CO2 and other greenhouse gases emitted.

Compliance risk: the risk of material financial losses, damage to APG’s reputation, and sanctions from supervisors as a result of non-compliance with laws and regulations and/or unethical conduct.

Connectivity matrix: diagrammatic overview of the way aspects relevant to long-term value creation depend on one another.

Digital security & privacy: the protection of digital data relating to participants and employers. This means preventing this data from being accessed or manipulated by unauthorized persons and from being abused.

Participants: persons who accrue or have accrued pension entitlements with a pension fund, or who receive a pension. The number of participants is the sum of the number of active participants, former participants, and pensioners (pension beneficiaries).

Extra return (5 years) in basis points: the return in excess of the benchmark; the return we achieve measured over an average period of five years. The basis point reflects the smallest change and equals one hundredth part of a percent.

Fiduciary model: model ensuring the separation of the three roles in the investment process: providing independent advice to our clients, investing pension capital, and managing the risks.

Financial risk: the risk of an undesirable event that impacts APG’s balance sheet and/or income statement, caused by variations in uncontrollable market variables or insured loss probabilities.

Governance: the conduct of a business: how it works, with whom and on what terms.

Highest net result: achieving the highest net result for the pension funds and their participants, i.e. after deducting the costs.

ICLAAP: Internal Capital Adequacy Assessment Process, European guidelines encouraging the financial sector to reflect on their capital and liquidity risks in a structured way, and to measure and control these risks.

Inclusion policy: asset management policy setting out in which companies we can invest, based on return, risk, costs, and sustainability. We distinguish outliers (high-scoring companies), promising (companies we encourage, by engaging with them, to do better), and laggards (companies that need to take serious steps if we want to continue to invest in them). Our investment decision therefore depends on the qualification.

Liquid investments / Illiquid investments: liquid investments concern readily marketable investments, for which an objective price is available virtually all the time, unlike illiquid investments, for which this is not the case.

Maximum pension value: creating the best possible pension for the participants: the greatest number of income years for the future and high-quality services at a market-based price, while caring about intergenerational solidarity, sustainability, and an inclusive society.

Employee engagement survey: a survey measuring the APG staff’s job satisfaction and whether they are energized by their work. In addition to involvement, six other themes are measured: vitality, inclusion climate themes, development opportunities, identification with APG, leadership and support, and collaboration and psychological safety. This survey is carried out every six months. The score reported is that of the survey conducted in October.

MiFID: Markets in Financial Instruments Directive, which aims to improve competition in the European financial markets by creating a single European market for investment services and activities.

Net promoter score: an instrument for measuring customer loyalty.

New pension system: contributing towards a future-proof system of providing pensions, for instance by easing the transition to the Pension of the Future through careful preparation.

Operational risk: the risk of losses due to external events, failing internal or outsourced processes and ICT systems, or undesirable behavior on the part of the staff. Operational risks may have undesirable consequences for our clients. The associated outsourcing risk for clients is part of APG’s integrated risk management.

Pension administrator: if a pension fund is the head, a pension administrator is the hands. Everything is thought out in the pension fund and carried out by a pension administrator. An administrator often does this for several pension funds at the same time. This makes it cheaper and more efficient. According to the definition applied by the Dutch Central Bank, APG is a pension administration organization (PAO), whereas a pension fund or insurer is a pension administrator.

Pension administration: all administration and communication services that APG provides as an administrator on behalf of its client pension funds to employers and participants in accordance with Article 1, pension administrators, of the Pension Act.

Personal Pension Pot: a simple way to inform the participants of their pension entitlements. It shows the amount accrued by a participant to date, how much he/she has contributed, and how much is contributed by the employer, and the return on the investments.

Reputation score: the reputation score, which is obtained by a reputation study conducted by the Reputation Institute, provides insight in the reputation. The method not only measures the reputation, but also the causes and effects. The score reported is the average score over the year.

Risk profile: the risk profile indicates how much risk our clients - the pension funds - are permitted to take with the participants’ capital. The risk profile is drawn up by APG in consultation with the client. The client’s risk profile is based on an Asset/Liability model. This is a calculation model based on assets and liabilities identifying, on the basis of the pension fund’s preferences, the desired return and the related acceptable degree of risk.

Analysis of stakeholders: overview of the most significant stakeholders involved in and exerting influence over our organization.

Strategic risk: the risk that strategic objectives will not be attained as a result of changes in the competitive situation, political decisions, stakeholders, reputation and/or business climate or the organization’s ability to adapt to these changes.

Sustainable Development Goals (SDGs): global goals for sustainable development, formulated by the United Nations.

Responsible investing: achieving a responsible investment result which generates not only a financial, but also a social return, by focusing on people, the environment, and good governance.

Reporting risk: the risk that errors in the administrative processes or system result in inaccuracies in the financial reporting products.

Pension trust: the trust society puts in pensions.

Value creation model: the effect of the interaction between human capital, the organization and the client is referred to as value creation. The value creation model is a schematic representation of the value creation process.

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