Climate change is one of the most urgent challenges facing our planet
As an integrated financial services group, Aegon seeks to support the transition to a climate-resilient economy and a net-zero world. We finance the upside through our responsible investment framework, while mitigating the downside by integrating environmental, social and governance (ESG) considerations into our risk management processes, and the savings and protection solutions we provide.
"Climate change is one of the most urgent environmental and social issues of our time, and Aegon is committed to helping transition to a net-zero carbon economy. We are embarking on a journey to transition Aegon's investment portfolio to net-zero emissions by 2050. To live up to this commitment, we have set a first medium-term target, underpinned by concrete action plans. I am convinced that by building a sustainable company, we can create lasting value for all our stakeholders."
We are transitioning our proprietary investments to net-zero
The influence, both positive and negative, that we can have as an investor is significant. We have committed to transitioning our general account investment portfolio* to net-zero greenhouse gas (GHG) emissions by 2050. The commitment includes an intermediate target to reduce the carbon intensity of our corporate fixed income and listed equity general account assets by 25% in 2025 vs 2019.
* The general account portfolio consists of assets where Aegon can take the investment decisions, considering the legal obligations of Aegon as prescribed by local laws and regulations. A similar approach applies to selected investments where Aegon Asset Management in its capacity of manager takes the investment decisions. For discretionary investments for account of third parties and off-balance sheet investments, the investment decisions are driven by the relevant third parties as well as the legal and/or fiduciary obligations of Aegon, as prescribed by local laws and regulations.
We integrate climate scenarios in our risk analyses
We have a duty to ensure that our portfolio of assets is resilient when it comes to the risks of climate change. This concerns both transitional risk (i.e. policy & technological changes) and physical risks (i.e. gradual impact & extreme weather events) associated with climate change.
Therefore, Aegon performs extensive and systematic climate risk assessments for the general and separate account assets of all business units within Aegon. Results indicate resilience of the Aegon General Account portfolio to key systemic climate risk drivers across all modelled climate scenarios.
We enable clients to invest in a more sustainable future
We are an active, engaged and responsible investor. By investing responsibly, we aim to minimize risk and explore new opportunities as we seek to generate value for our clients.
As an institutional investor, Aegon expects investee companies to work toward reducing their environmental impact. We engage with the companies we invest in both individually and collectively to encourage better climate-related risk practices, including emissions measurement, disclosure, target setting and reporting.
We are reducing the climate footprint of our own operations
In line with our net-zero commitment, Aegon has set a supporting greenhouse gas emission reduction target to reduce the carbon footprint of our operational activities by 25% by 2025. The target includes the consumption of natural gas and electricity. We will work toward achieving our target through implementing our hybrid working policy and other initiatives.
Our direct business operations have been carbon-neutral since 2019 (on a market-based measurement) through substitution of the company's energy consumption with renewable sources and offsetting its remaining carbon emissions.
We collaborate to counter climate change
In order to amplify our impact, we have signed up to several international commitments that guide our internal practices and policies, and help shape our overall approach to sustainability.
In November 2021, Aegon N.V. joined the Net-Zero Asset Owner Alliance, an UN-convened group of institutional investors committed to transitioning their portfolios to net-zero GHG emissions by 2050. Aegon N.V. defined a specific, actionable target for 2025.
We endorse the recommendations of the Task-force on Climate Related Financial Disclosures (TCFD) and report in line with its framework.
Aegon N.V. is an investor member of the CDP (formerly the Carbon Disclosure Project). CDP encourages companies to be more open about their greenhouse gas emissions. Investors signing up to the project manage assets worth approximately $100 trillion as of 2019.
Aegon participates in the annual CDP Climate Change disclosure, where we publish performance data, policies and practices related to the impacts and opportunities related to climate change in the context of our business activities. We maintained a rating of 'C' for our 2021 reporting year disclosure1)
1) © 2022 CDP Europe AISBL www.cdp.net/en
Aegon N.V. signed the Paris Pledge for Action in 2015, committing us to taking action in support of implementing the Paris Agreement and accelerating the transformative changes needed to meet the climate change challenge.