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 have a responsibility to manage our investments to take account of climate risk. We do this through our responsible investment framework and by integrating sustainability considerations into our risk management processes. In addition, we offer our customers products with climate resilience built in to accelerate the path to net-zero.
"Climate change is one of the most urgent environmental and social issues of our time, and Aegon is committed to supporting the transition to a net-zero carbon economy. We have embarked 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
We realize that our influence as an investor is significant and we must aim to make a positive contribution to mitigating climate change. Therefore, 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.
- Investing USD 2.5 billion in activities to help mitigate climate change or adapt to the associated impacts by 2025.
- Engaging with at least the top 20 carbon emitters in the portfolio by 2025.
* 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, both individually and collectively, with the companies we invest in 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.
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 joined the Net-Zero Asset Owner Alliance, a UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050.
For us, this means committing to the transition our EUR 156 billion general account investment portfolio to net-zero greenhouse gas emissions by 2050.
We have set clear medium-term targets to drive our progress:
- By 2025, Aegon aims to reduce by 25% the weighted average carbon intensity of its approximately EUR 55 billion corporate fixed income and listed equity general account assets where it has control.
- Invest USD 2.5 billion in activities to help mitigate climate change or adapt to the associated impacts by 2025.
- Engage with at least the top 20 carbon emitters in our general account portfolio by 2025.
Aegon will set additional targets at 5-year intervals for the period after 2025 until 2050. To reach the 2025 target, Aegon will adjust its general account portfolio.
Aegon will regularly engage with those companies in its global investment portfolio that are the most carbon-intensive to drive real-world reductions in greenhouse gas emissions.
Aegon will regularly update its group-wide responsible investment exclusion criteria to reflect the latest scientific findings on climate change.
For our 2021 disclosure(s), see page 20 of our 2021 Integrated Annual Report
Climate change represents one of the biggest risks to society, the economy, and financial institutions. Mitigating climate change, including the reduction of greenhouse gas (GHG) emissions, is a major global challenge. Aegon believes that governments, companies, and investors have a responsibility to mitigate climate change and its impacts and facilitate a transition to a climate-resilient economy.
Our integrated report follows the Task Force on Climate-related Financial Disclosures (TCFD)’s four-pillar framework to facilitate disclosure. Aegon strives to continuously enhance its reporting and business practices and welcomes feedback from stakeholders on the appropriateness and relevance of this disclosure.
We participate 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.
Aegon has made a disclosures to CDP since 2015. The initiative encourages companies to be more open about their greenhouse gas emissions and other climate related impacts.
- CDP Climate Change 2022 (2021 Reporting Year)
- CDP Climate Change 2021 (2020 Reporting Year)
- CDP Climate Change 2020 (2019 Reporting Year)
(Disclosures prior to the 2019 reporting year are available on the CDP website)
Aegon 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.
Read more about how we are stepping up action on the climate change challenge