Sustainable Investment FrameworkACTIAM stimulates entities to prosper while operating within the planetary boundaries and respecting the social foundations of society
We recognise that companies and countries that have prepared for this transition perform better than those that do not consider the changing material environmental, social and governance (ESG) requirements of society. ACTIAM's Sustainability Policy stimulates companies and countries to prosper while operating within the planetary boundaries and respecting the social foundations of society. We call this the 'safe and just operating zone', where global challenges such as climate change, resource scarcity, social injustice and inequality are properly managed. The planetary boundaries and social foundations indicate the maximum amount of natural resources humanity can use without exhausting the planet and the minimum universal social and governance norms affecting people's health and wealth.
Based on the assessment of the Fundamental Investment Principles and the Material Sustainability Drivers, each company and country is categorised within the ACTIAM Sustainability Framework. The category determines the responsible investment instruments that apply to a company or country and the investment strategies and solutions in which an entity fits.
Companies and countries making a positive and intentional contribution to one or more of the Sustainable Development Goals while operating within planetary boundaries and ensuring social foundations (in other words, within the safe and just operating zone). Their economic activities expand the safe and just zone and create positive impact.
Companies and countries that are within, or close to, the boundaries of the safe and just operating zone and are sufficiently managing the risks they are exposed to. They have, or there is evidence to demonstrate they will have, science-based verifiable strategies in place to reach the safe and just operating zone within an acceptable time frame.
Companies and countries operating outside the boundaries, not operating on the required transition pathway and having unmanaged risks, are considered to be at risk. They currently lack the adaptive capacity to prepare themselves for the transitions and are vulnerable to operational risks. Yet, through active ownership, they may develop this capacity and reduce their risks.
Companies and countries operating outside the boundaries, far removed from the required transition pathways, and lacking the capacity to bring risk management up to standards, are considered non-adaptive. These entities lack sound management strategies on their material issues, are exposed to high risks and therefore face significant operational risks in the short- to medium-term. These companies and countries are excluded from investments.
Companies operating outside the boundaries, with activities either through their operations or products that are harmful to society or the environment at a threshold inconsistent with our sustainability beliefs. Examples include companies whose primary business is tobacco production.
Non-compliant with international norms and standards
Companies that do not comply with recognised international norms and standards. Examples include companies that manufacture controversial weapons or are in breach of the United Nations Guiding Principles on Business and Human Rights.
Companies and countries in the categories ‘Harmful’ and ‘Non-compliant with international norms and standards’ do not comply with the Fundamental Investment Principles are exhibiting unacceptable behaviour. These are excluded from the investment universe.
Please look at ACTIAM's ambitions for Fossil fuels, Water use, Land use, Human capital, labour capital & organisational behaviour as well as Chemicals and waste management and the Sustainable Investment Instruments we use in sustainable investing.