29 May 2019 - 07:35 CET
NN Group establishes coal policy to accelerate the transition to a low-carbon economy
Together with its asset manager, NN Investment Partners (NN IP), NN Group has introduced a comprehensive policy ‘Statement on Coal’ on thermal coal. This policy includes several elements regarding its different business activities. In addition to exclusionary criteria related to thermal coal mining, an engagement strategy will be developed to intensify dialogue with power generation companies, and a phase out of coal-exposed investments is implemented for its general account assets within 10 years. To create consistency across its business, NN will also align its policy for insurance underwriting with the investment side.
Thermal coal, the type of coal used for power and heat generation, has the highest CO2 emission in relation to energy content. While the global demand for reliable and affordable energy is expected to rise, there is widespread scientific consensus that a stringent phase-out of thermal coal is required if global warming is to be kept well below 2 degrees above pre-industrial levels in line with the Paris Agreement.
Dailah Nihot, member of the NN Group Management Board: ‘NN’s coal policy is in line with our company’s values, our responsible investment policies, and the support of the Paris Agreement. We believe that the different elements of the policy reinforce each other, and further our efforts to contribute to the transition to a low-carbon economy. ‘
By excluding thermal coal mining companies as an investment option, and selling any existing exposures, more emphasis is put on the path to lower-carbon forms of energy. At the same time, NN Group continues its dialogue with utility companies to encourage them in their journey to reduce their dependence on coal-fired power generation. To underline these efforts and to provide a clear signal, the company will fully phase-out its existing proprietary investments in mining and utility companies with coal involvement by 2030. The end-date for this ‘close to zero’ coal-involvement (defined as between 0 and 5%) will be aligned for NN Group’s insurance underwriting business.
NN Group profile
NN Group is an international financial services company, active in 18 countries, with a strong presence in a number of European countries and Japan. With all its employees, the Group provides retirement services, pensions, insurance, investments and banking to approximately 17 million customers. NN Group includes Nationale-Nederlanden, NN, NN Investment Partners, ABN AMRO Insurance, Movir, AZL, BeFrank and OHRA. NN Group is listed on Euronext Amsterdam (NN).
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