Aegon to stop investing in oil sand sector

Aegon to stop investing in oil sand sector

2 minute read

Today Aegon announces that it has decided to stop investing in oil companies that produce 30% or more of their total production from oil sands, and in pipeline companies which are involved in oil sands transportation.

These investments are not considered to be in line with the company's climate strategy.

Following the earlier decision to stop investing in thermal coal (2016), Aegon will now start the run-off for fixed income investments in the oil sands industry. Aegon does not own shares in this industry. Aegon will add eleven companies involved in the Canadian oil sands to the exclusion list as of today.

"As a signatory to the Paris Pledge for Action and considering our strategic focus on supporting the energy transition, it is not compatible to make new investments in oil production from oil sands", Marc van Weede, Global Head of Strategy & Sustainability, said. Oil sands production has the highest greenhouse gas intensity of all fossil fuels after coal and in all transition scenarios, new oil sand developments are outside the allowable carbon budgets."

Aegon had invested about EUR 500 million in companies that are involved in oil sand. Aegon the Netherlands holds EUR 30 million in shares of in total seven companies. These investments are held on behalf customers of Aegon the Netherlands and have been sold.

Aegon currently holds around EUR 8 billion in "impact investments", of which approximately EUR 800 million in renewable energy and green bonds.