ESG integration in our investments portfolio
Our investment portfolio
As a large insurance company, NN maintains a globally diverse investment portfolio. We do this in order to be able to meet the obligations to our customers and for equity (capital). NN Group's portfolio that we invest for our own account and risk spans various asset classes, sectors and countries. As we are well aware of the impact our investment decisions may have, investing our own assets in a responsible way is very important to us. Whether we are researching and analysing companies and countries, voting as shareholders or selecting asset managers, we integrate environmental, social and governance (ESG) factors into our processes as much as we can.
ESG integration in fixed income and listed equity
NN Investment Partners (NN IP) manages our listed equity portfolio, and the large majority of our fixed income assets. As a signatory to the UN PRI since 2008, NN IP has a long experience in identifying ESG-related opportunities and/or risks on which portfolio managers base their investment decisions.
ESG integration is an integral part of NN IP’s investment processes. All analysts have access to ESG data from several data/research providers, which includes information on how each company scores on different ESG factors compared to its sector average, and if there are any relevant structural issues or controversies to consider. The analysts incorporate this data into their investment cases, thereby looking at the materiality for each company that is reviewed for investment. This process is applied to equities and corporate bonds. A similar procedure is in place for government bonds; however, instead of using ESG data on a company level, ESG data at a country level are being used. More information can be found here.
For more information on NN IP’s responsible investment policies and activities:
Sustainability of real estate
We strive to integrate ESG factors across all asset classes. In line with our ambition, NN Group formalised a sustainability approach for its own real estate portfolio. Specific responsible investment (RI) guidelines were developed, which set out the expectations of our (external) real estate managers. These guidelines can be downloaded here.
Since 2014, NN Group has been a member of the Global Real Estate Sustainability Benchmark (GRESB). We use the annual Real Estate Assessment to evaluate and engage with our real estate investments with the aim to improve the sustainability performance of our portfolio. For information on how we perform in GRESB, refer to disclosures in the NN Group Annual Report.
ESG integration in private equity
NN Group has responsible investment (RI) guidelines for private equity in place. We invest in funds that are managed by external private equity managers. The guideline defines our approach to integrate ESG factors in the selection and appointment of new private equity managers. Where it concerns existing investments in funds, we seek to actively engage with the managers to raise awareness on the importance of ESG factors during the evaluation and ongoing management of its private equity portfolio companies. To monitor the funds in which we invest, we developed an ESG dashboard. This dashboard is part of our internal performance reports and tracks the progress of the private equity funds and managers towards meeting our expectations.