AEGON's investment strategy operates within the company's overall risk management framework, and tries to balance the need to maximize returns with consideration for social, environmental, governance and other non-financial factors.
Traditionally, AEGON investment practices and policies have varied from country to country. However, AEGON is now working on a project to develop a more integrated approach to responsible investments. As part of this project, AEGON Asset Management became a signatory in February 2011 to the United Nations Principles for Responsible Investment (UNPRI). Previously, only AEGON’s asset management company in the United Kingdom had been a signatory to the UNPRI. AEGON Asset Management UK will, for the time being, maintain its separate membership to the principles.
Our approach
AEGON realizes that the value of its investments may be affected by environmental, social and governance (ESG) factors, as well as financial ones. Examples include:
- Fines due to environmental damage or pollution.
- Poor safety records, leading to industrial accidents or lawsuits.
- Losses due to high energy use or poor waste management.
- Lost income resulting from political or regulatory changes or labor disputes.
Once these factors have been identified, they may be considered by investment managers alongside more conventional financial analysis. AEGON believes that, if the company’s investment managers are aware of potential ESG risks, they will make better investment decisions, both for AEGON and its clients. In line with the UN Principles for Responsible Investment, AEGON Asset Management is further developing internal structures and processes that will encourage portfolio managers to take ESG factors into account in both their analysis and decision-making.