Path:

Goals & progress

Aegon is one of the founding signatories of the UNEP-FI’s Principles for Sustainable Insurance (PSI). The aim of the PSI is to make sure sustainability becomes business as usual.

Aegon Principles for Sustainable InsuranceThe PSI comprises four basic principles. Against each of these principles, we’ve set ourselves specific goals and targets. Each year we report our progress. We put these goals and targets in place three years ago – when the PSI was launched. In many areas, we've already reached the objectives we set for ourselves. That's why we've now set new goals, outlined below.

We will embed in our decision-making ESG issues relevant to the insurance business

Goal Progress update March 2017
Ensure responsible business is an integral part of Aegon's corporate strategy – of which the implementation is the responsibility of Aegon's highest management level

Where possible, incorporate our sustainability policies into our existing risk and compliance frameworks to ensure effective identification, monitoring and management of ESG risks.

Only offer products and services that customers can trust.

Conduct a climate change risk assessment across our investment portfolio, and develop an appropriate governance process based on the climate risks and opportunities identified.

Respond to clients quickly, fairly, clearly and transparently at all times.

We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

Goal Progress update available March 2017
Monitor key suppliers on ESG issues relevant to their business, most specifically relating to the criteria set out in our Sustainable Procurement Policy, and stimulate responsible business conduct.

Encourage clients, business partners and suppliers to disclose ESG issues using relevant disclosure or reporting frameworks.

Apply our market conduct principles to the selection process for intermediaries, and only do business with intermediaries that share our values.

Where possible, extend our approach to responsible investment to assets managed for us or our customers by third-party asset managers.  

We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.

Goal Progress update March 2017
Continue our research efforts and engage with governments, academia and the scientific community to promote retirement readiness and healthy aging.
 

We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.

Goal Progress update March 2017
Proactively and regularly disclose our progress in managing ESG issues and implementing our PSI commitments via our Annual Review and website.

   

Embed the environmental, social and governance (ESG) issues, relevant to the insurance business, in our decision making.

Goal Progress
Implement minimum standards of market conduct – both for ourselves and our brokers and intermediaries.
We successfully established and implemented our Market Conduct Principles in our risk management framework as an internal benchmark for dealing with customers during all aspects of the relationship we have with them.
Introduce new rules for pricing our products focused, in part, on benefits for customers.
In July 2015, we updated our Pricing & Product Development Policy. The Policy contains an obligation to explicitly consider the interests of our customers in the development and pricing of new products and services, and is audited regularly.
Where possible, make our products clearer and easier for our customers to understand
We've been continuously improving our customer communication materials, using direct customer feedback to establish how our materials can be clearer, easier to understand and more personal. We've also provided platforms via which (potential) customers can test their retirement readiness enabling them to make educated choices when researching and buying products online.
Use our employees' diversity to bring new insights into our business. We've brought out a company-wide Statement on Diversity & Non-discrimination and have implemented affirmative action programs and Employee Resource Groups to encourage greater diversity within the company's workforce. Further implementation will remain a key strategic objective for Aegon in the coming years.
Develop a set of indicators and measurements to track progress on our overall sustainability strategy. We have KPIs in place against each of our strategic objectives, and we'll continue to report against these in the period ahead.

Work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

Goal Progress
Put in place minimum social and environmental standards for the goods and services we buy.
We introduced a Sustainable Procurement Policy in 2013. This policy applies to all our businesses worldwide, and is based regular ESG risk assessments.
Make sure we invest responsibly and engage actively with companies we invest in.
We've had a Responsible Investment Policy in place now for more than four years. This Policy covers all businesses and all major asset classes, and outlines our approach to active ownership, engagement and ESG integration.
Look at opportunities to expand investments where there are clear social or environmental benefits. We now have more than €7.6 billion in impact investments. These include affordable housing, green bonds, sustainable timber and renewable energy.

We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.

Goal Progress
Organize panels of stakeholders to provide feedback on our work and performance.
We carry out an annual survey of our leading stakeholders. And we work through other stakeholder
bodies, such as our Customer Advocacy Board in the UK and customer arenas in the Netherlands.
Fund research into aging and demographic change in both the US and Europe.
We publish twice-yearly Retirement Readiness reports based on research in the US, Europe and Asia. In the US, we have entered a collaboration with the Stanford Center of Longevity to contribute to research on how well people are doing in areas deemed critical to well-being as people age. We also operate the not-for-profit Transamerica Center for Retirement Studies, which works together with the Massachusetts Institute of Technology's AgeLab.
Provide limited paid-time off to allow employees to support community projects and initiatives. Volunteering programs have now been extended to more than 90% of Aegon's global workforce. Last year, employees gave more than 21,000 hours, equivalent to almost a €1 million.

We will demonstrate accountability and transparency in regularly disclosing our progress in implementing the principles.

Goal Progress
Publish these goals and targets and our progress against them in both this report and on the Aegon website.
We publish our progress against the PSI principles every year. We have updated our goals and targets, in line with the new strategic direction of our business.
 

 

Embed the environmental, social and governance (ESG) issues, relevant to our industry, in our decision making.

Goal Progress
Implement minimum standards of market conduct – both for ourselves and our brokers and intermediaries.
We've adopted a set of six basic market conduct principles. These principles apply to all our businesses worldwide, and ensure we put the interests of our customers first.
Introduce new rules for pricing our products focused, in part, on benefits for customers.
We've introduced a new Pricing & Product Development Policy.. This commits us to calculating potential benefits to customers before approving any new product or service.
Where possible, make our products clearer and easier for our customers to understand
We've launched new products and reviewed existing ones. We've made it easier to research and buy products online, and we've rewritten hundreds of customer letters and other correspondence to strip out unnecessary jargon.
Use our employees' diversity to bring new insights into our business. We've brought out a company-wide Statement on Diversity & Non-discrimination. set up a Diversity Development Board at our operations in the US, and agreed a new plan to promote workforce diversity over the next few years. We're also members of Workplace Pride, which strives for greater acceptance of LGBT employees in the workplace and in society.
Develop a set of indicators and measurements to track progress on our overall sustainability strategy. We've put in place key performance indicators for each of our four strategic objectives. We'll continue to report progress against these KPIs in the years ahead.

Work together with clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

Goal Progress
Put in place minimum social and environmental standards for the goods and services we buy.
We've introduced a new Sustainable Procurement Policy. This policy applies to all our businesses worldwide, and is based regular ESG risk assessments.
Make sure we invest responsibly and engage actively with companies we invest in.
We have a Responsible Investment Policy in place now for more than three years. This policy covers all businesses and all major asset classes. The policy is based on engagement with the companies we invest in. Last year, we engaged on ESG issues with 230 companies.
Look at opportunities to expand investments where there are clear social or environmental benefits. We now have more than €4.3 billion in "impact investments". These include affordable housing, renewable energy and sustainable timber. We also have more than €xx million invested in green bonds.

We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.

Goal Progress
Organize panels of stakeholders to provide feedback on our work and performance.
We carry out an annual survey of our leading stakeholders. And we work through other stakeholder bodies, such as our Customer Advocacy Board in the UK. We had planned stakeholder panels in our main country units, but these have now been shelved.
Fund research into aging and demographic change in both the US and Europe.
We publish twice-yearly Retirement Readiness reports based on research in US, Europe and Asia. In the US, we also operate the not-for-profit Transamerica Center for Retirement Studies and a partnership with AgeLab, part of the Massachusetts Institute of Technology (MIT). In the Netherlands, we're members of Netspar, the Network for Studies on Pensions, Aging & Retirement.
Provide limited paid-time off to allow employees to support community projects and initiatives. Volunteering programs have now been extended to more than 90% of Aegon's global workforce. Last year, employees gave up almost 17,000 hours, equivalent to approximately €0.7 million.

We will demonstrate accountability and transparency in regularly disclosing our progress in implementing the principles.

Goal Progress
Publish these goals and targets and our progress against them in both this report and on the Aegon website.
We publish our progress against the PSI principles every year. In 2015, we will be updating our goals and targets. Details will be included in the 2015  Review.

 

Embed the environmental, social and governance issues relevant to our industry, in our decision making.

Goal Progress
Implement minimum standards of market conduct – both for ourselves and our brokers and intermediaries.
We've adopted a set of six basic market conduct principles. These principles apply to all our businesses worldwide, and ensure we put the interests of our customers first
Introduce new rules for pricing our products focused, in part, on benefits for customers.
We've introduced a new pricing and product development policy. This commits us to calculating potential benefits to customers before approving any new product or service.
Where possible, make our products clearer and easier for our customers to understand
We've re-written hundreds of customer letters and other correspondence to make them easier to read. We've also launched products that can be applied for or bought online.
Use our employees' diversity to bring new insights into our business. We've set out our commitments in this area with a new company-wide Statement on Diversity & Non-discrimination. We're also promoting greater diversity in our businesses through discussion groups, training and other local events.
Develop a set of indicators and measurements to track progress on our overall sustainability strategy. We've put in place key performance indicators for each of our four strategic objectives. We'll continue to report progress against these KPIs in the years ahead.

Work together with clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

Goal Progress
Put in place minimum social and environmental standards for the goods and services we buy.
We've introduced a new Sustainable Procurement Policy. This policy applies to all our businesses worldwide, and is based regular ESG risk assessments.
Make sure we invest responsibly and engage actively with companies we invest in.
We have a Responsible Investment Policy, covering all major asset classes. As part of this policy, we engage regularly with the companies we invest in on social and environmental issues and on issues of corporate governance.
Look at opportunities to expand investments where there are clear social or environmental benefits. Currently, we have just under €3 billion in "impact investments". These investments include affordable housing, renewable energy and sustainable timber. Over the past year, we've also invested in new green bonds issued by the World Bank and the European Investment Bank.

We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.

Goal Progress
Organize panels of stakeholders to provide feedback on our work and performance.
We have a stakeholder panel in the Netherlands, which meets at least twice a year. Plans to organize similar panels in the UK and US have been delayed, however.
Fund research into aging and demographic change in both the US and Europe.
We have a dedicated non-profit research centre in the US, and publish regular Retirement Readiness surveys based on research in the US, Europe and Asia. We've also agreed a separate research partnership with AgeLab, part of the Massachusetts Institute of Technology (MIT).
Provide limited paid-time off to allow employees to support community projects and initiatives. At the end of 2013, more than 90% of our employees could claim limited paid time-off for volunteer work. We expect that to rise to 100% of employees by mid-2014.

We will demonstrate accountability and transparency in regularly disclosing our progress in implementing the principles.

Goal Progress
Publish these goals and targets and our progress against them in both this report and on the Aegon website.
We publish our PSI commitments, our goals and targets and our progress against them every year in our annual Review.
Businesses should support and respect the protection of internationally proclaimed human rights. We've had a human rights policy in place since 2007. This policy applies to all our businesses worldwide, and is based on the UN Declaration of Human Rights, the International Labor Organization core standards and the recent UN Guiding Principles on Business & Human Rights.
Businesses should make sure they are not complicit in human rights abuses.
We require all our business to comply with our human rights policy. We also incorporate consideration for human rights into other internal polices, including those governing responsible investment and procurement. Beginning in 2014, we'll carry out an annual assessment of our global human rights risks.
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
We have included the International Labor Organization's core standards in our human rights policy. These core standards refer to both freedom of association and the right to collective bargaining. All Aegon employees are free to join trade union or other employee representative bodies.
Business should uphold the elimination of all forms of forced and compulsory labor.
We have included forced and compulsory labor in our human rights policy (via the International Labor Organization's core standards). In addition, our internal policies require us to take the risk of forced and compulsory labor into account when making procurement and investment decisions.
Businesses should uphold the effective abolition of child labor.
We've included child labor in our human rights policy (via the ILO core standards), as well as in our Sustainable Procurement and Responsible Investment Policies.
Businesses should uphold the elimination of discrimination in respect of employment and occupation.
We have a Statement on Diversity & Non-Discrimination, which applies to all our businesses worldwide. We also comply, of course, with all relevant laws and regulations in this area. In addition, we have projects and initiatives within our business to prevent discrimination in the workplace, and encourage greater diversity. The principle of non-discrimination is also included in our Code of Conduct.
Business should support a precautionary approach to environmental challenges.
Aegon has an environmental policy, which applies to all our businesses. This policy stresses the importance of reducing energy consumptions and eliminating waste, wherever possible. Consideration for the environment is also included in our Sustainable Procurement and Responsible Investment Policies. Aegon is also a member of the CDP, formerly the Carbon Disclosure Project, and the Extractive Industry Transparency Initiative, which encourages mining and energy companies to be more transparent about the proceeds from their activities.
Businesses should undertake initiatives to promote greater environmental responsibility.
Please refer to the answer above.
Businesses should encourage the development and diffusion of environmentally-friendly technologies.
We have significant investments in renewable and green energy technologies. These include wind power, sustainable timber and housing with built-in energy efficiency.
Businesses should work against corruption in all its forms, including extortion and bribery. We have a specific anti-corruption policy – Aegon's Global Financial Crime Notification & Reporting Procedure. Our Code of Conduct also contains provisions aimed at tackling fraud, corruption and money laundering. Our employees also receive regular training on these issues. To encourage reporting of suspected wrongdoing, we have a confidential Global Ethics Line, open to employees and outside parties round the clock, and in the language of their choice.

 

Trusted products and services

Goal Progress
Introduce new company-wide principles of market conduct, alongside existing local codes, to ensure customers are treated fairly that products and services are clearly explained; and that customers are offered products that meet their specific requirements. Aegon has adopted a set of six basic market conduct principles, applying to all its businesses worldwide. These principles encourage open, fair and honest treatment of the company’s customers at all times.
Develop common benchmarks for product development and pricing to ensure products meet the same basic criteria wherever they’re sold around the world. Aegon has recently updated its Pricing & Product Development Policy. Among others, this policy commits the company to assessing potential benefits for customers and other stakeholders and to take these into account before pricing any product or service.
Introduce the Net Promoter Score (NPS) as the company’s preferred measure of customer loyalty, and use NPS to strengthen products and customer service. Aegon has adopted the Net Promotor Score (NPS) as its preferred measure of customer loyalty. Nearly three-quarters of Aegon businesses now use NPS. That figure is expected to increase further in 2013. Aegon’s businesses use findings from NPS surveys to drive further improvements in the company’s products and services.

Responsible approach to investment

Goal Progress
Ensure environmental, social, business and governance factors are taken into account when making investment decisions, as part of the company’s broader policy on Responsible Investment. Aegon is providing training to fund managers across its businesses to ensure effective implementation of the company’s Responsible Investment Policy. Aegon has also secured information from a third party provider which will enable fund managers to better assess environmental, social and governance risks when making their investment decisions.
Explore the possibility of expanding Aegon's current impact investments into areas such as renewable energy, and affordable housing. Aegon already has significant “impact investments”, which deliver not only sound financial returns, but also social and environmental benefits. Aegon will be looking at possible new investments in areas such as renewable energy and low-cost housing when opportunities arise.

Building better communities

Goal Progress
Expand the company’s advocacy program, and focus research and public policy work on the key issues of global aging, retirement and financial literacy. In 2011, Aegon published its first Changing Face of Retirement report, based on extensive research in the United States, Europe and Asia. In the United States, the non-profit Transamerica Center for Retirement Studies also publishes regular research into retirement trends and practices. Aegon is also a founding member of the Global Coalition on Aging, which aims to increase understanding of aging issues among world leaders and other policymakers.
Build a stronger corporate citizenship program to support communities around the world. In many countries, Aegon has introduced limited paid time-off for employees wishing to volunteer in their local communities and elsewhere. By the end of 2012, paid time-off was available to 64% of the company’s workforce worldwide. Aegon expects to extend this benefit to other employees during the course of 2013.

A strong foundation

Goal Progress
Where possible, set clear goals, and performance targets with regard to the company’s main non-financial objectives. Report progress against these goals and targets, both externally and within the company. Aegon has now defined a set of key performance indicators linked to the company’s strategic objectives and its overall sustainability goals. Reporting against these KPIs will be introduced progressively during the course of 2013.
 Where relevant, incorporate KPIs into management and decision-making processes. Aegon is gradually incorporating sustainability KPIs into relevant processes and procedures. A number of areas already include key sustainability indicators, including risk management, remuneration and pricing & product development.
 Ensure an appropriate level of external assurance for the company’s reporting. Aegon’s Review and Sustainability Supplement are reviewed each year by the company’s external auditors, Ernst & Young LLP. Ernst & Young LLP currently provides “limited assurance” on these documents. During 2013, Aegon will examine the possibility of increasing its level of external assurance for some of the company’s key performance indicators and sustainability goals.
 Maintain an active engagement program with stakeholders in Aegon’s main markets. Aegon conducts an annual Stakeholder Survey and has regular contact with stakeholders in all its main markets, including a stakeholder panel in the Netherlands. Aegon’s aim for 2013 is to organize similar stakeholder dialogue in both the United States and the United Kingdom.
 Comply with reporting standards set by the Global Reporting Initiative to the highest possible level (A+). Aegon’s current reporting is based on the GRI’s G3 guidelines and is rated A+.
Maintain memberships of key international agreements and conventions, including the Principles for Sustainable Insurance, the UN’s Principles for Responsible Investment and the Carbon Disclosure Project. Aegon is a signatory to both the Principles for Sustainable Insurance and the Principles for Responsible Investment. The company is also a member of the Carbon Disclosure Project and an Organizational Stakeholder of the Global Reporting Initiative. Kames Capital, Aegon’s asset management business in the United Kingdom, is a member of the Extractives Industry Transparency Initiative.
Take an innovative approach toward “integrated reporting”, and play an active role in discussions in this area. In 2013, Aegon will be publishing its second annual integrated report. The company also works closely with the International Integrated Reporting Council on a pilot program to help develop a new integrated approach to corporate reporting.
Continue, where possible, to reduce consumption of key raw materials, particularly energy and paper. Over the period 2009-2012, Aegon reduced emissions of carbon dioxide from its main buildings and offices by almost 25%, well ahead of the company’s 10% targets. Aegon will continue its efforts to limit consumption of energy and other raw materials in 2013 and beyond, mainly through local initiatives.
Introduce minimum sustainability standards for the company’s leading suppliers, and conduct regular risk assessments in this area. Aegon is currently developing minimum procurement standards, which will apply to all the company’s businesses worldwide. These standards are expected to be in place during the course of 2013.
Strengthen Aegon’s approach to human rights in line with recent recommendations from John Ruggie, the UN’s Special Representative on business and human rights. Aegon already complies with most of the Ruggie recommendations, and is working on a number of further improvements that will bring the company’s practice fully into line with the new principles. Aegon expects to make these improvements during the course of 2013.
 

Please provide us with feedback on our website or ask us a question...

Feedback