3.1.2.1Asset Management
a.s.r. believes that businesses that take into account the interests of people, the environment, society and future generations will deliver more long-term value for all stakeholders, in both economic and social terms. Hence, responsible investing is essential for a.s.r.
In 2024, a.s.r. asset management published its new Sustainability Strategy and revised policy: the Policy on Responsible Investments (formerly SRI Policy). The new approach is centred on three key policy goals that underline a.s.r. asset management’s commitment to contribute to a better world: reducing harm, driving change, and creating positive impact. In order to achieve these goals, a.s.r. asset management makes use of a variety of tools, including exclusions, ESG integration, active ownership and impact investing.
In 2024, a.s.r. has made a change to its Policy on Responsible Investments, allowing investments in Dutch companies or activities related to the defence industry under strict conditions. This decision follows a call from the Dutch government for institutional investors to provide capital to strengthen the European defence industry. With this policy change, a.s.r. responds to the call to contribute to a safer world and democratic values through targeted investments. a.s.r. can deviate from its exclusion policy under strict conditions. These conditions are:
Investments may only be made in defence companies based in the Netherlands.
Investments may only be made in companies that are not involved in the production or distribution of controversial weapons or civilian firearms.
Investments may only be made in companies that do not supply high risk countries (as defined in the IRBC Framework on Controversial Weapons and Trade in Weapons with High-Risk Countries).
All investments are to be made at a.s.r.’s own account and risk.
Any investment proposal must be reviewed by a.s.r. Veiligheidszaken and approved by the Management Board of a.s.r., following the advice of the a.s.r. Sustainability Committee.
Compliance with the conditions related to controversial weapons, civilian firearms, or high-risk countries will be monitored annually.
a.s.r. asset management safeguards full compliance of its Policy on Responsible Investments using a three-step process: internal teams implementation (investment departments), compliance process and an independent external assurance (by Forum Ethibel).
Since making a difference requires focusing time and resources, a.s.r. asset management selected four themes on which it will focus:
Climate change and the energy transition;
Biodiversity and natural resources;
Health and well-being;
Human rights.
To delve deeper into these four focus themes, a position paper on each focus theme will be published in 2025. More details on the Sustainability Strategy, the Policy on Responsible Investments and four position papers can be found on a.s.r. asset management website.
The following sections provide a more detailed overview of a.s.r. asset management’s investment activities in 2024.
Reduce harm
a.s.r. asset management has a strict exclusion policy for controversial activities and behaviour that applies to all internally managed portfolios. In 2024, a.s.r. asset management expanded its exclusion criteria for coal-fired electricity production, coal mining expansion plans, palm oil and timber production, to further align with the goals set out in the Policy on Responsible Investments. This has led to more companies being excluded in 2024 compared to 2023. Following its bi-annual screening of the investment universe on the exclusion rules, in 2024, a.s.r. asset management has excluded 795 (2023: 435) companies. The excluded companies by topic are specified in the table below.
In 2024, a.s.r. saw a steep increase in excluded companies compared to 2023. This can be attributed to the expanded exclusion criteria but mainly to a larger screened investment universe due to the integration of Aegon portfolios.
With regard to investments in sovereign debt, in 2024, a.s.r. asset management excluded 81 (2023: 81) countries that are poor performers in the annual Freedom in the World report, countries with a low ranking on the Corruption Perceptions Index or countries scoring low on the environmental SDGs. All exclusion criteria and the most recent exclusion lists can be found in the a.s.r. SRI Detailed criteria for screening and on the a.s.r. asset management website.
| (in numbers) | 2024 | 2023 |
|---|---|---|
| Weapons | 184 | 110 |
| Gambling | 116 | 76 |
| Tobacco | 31 | 23 |
| Nuclear energy | 25 | 19 |
| Coal mining | 150 | 78 |
| Coal-fired electricity generation | 192 | 66 |
| Unconventional oil and gas | 77 | 64 |
| Conventional oil and gas1 | 17 | - |
| Palm oil | 5 | - |
| Unsustainable timber | 24 | - |
| Global Compact violations | 45 | 17 |
| Total number of exclusions2 | 866 | 453 |
| Total companies excluded | 795 | 435 |
- 1 When not Paris-aligned
- 2 Includes double counts due to the fact that some companies are excluded on more than one criteria.
Drive change
a.s.r. asset management believes that active ownership is key for a responsible investor. By engaging companies and exercising its voting rights, a.s.r. asset management uses its influence to drive positive change in companies.
Engagement
In 2024, engagements were carried out on behalf of a.s.r. asset management with 921 companies on numerous ESG topics, including with companies that have shown controversial behaviour (i.e. UNGC violations), or that are facing ESG-related risks. a.s.r. asset management engaged with companies in three different ways, bilaterally, collaboratively and via a third-party engagement provider. Our engagement provider Hermes EOS contributed materially to the engagement efforts in 2024.
(in %)
In 2024, a.s.r. asset management engaged via collaborative engagement initiatives, for example through the Platform Living Wage for Financials (PLWF) with companies to enable living wages and incomes in their supply chains, and regarding our fossil fuel exit strategy through the Dutch Climate Coalition. A full list of companies that a.s.r. asset management engaged with, can be found in the engagement reports on the website of a.s.r. asset management.
Health Engagement Alliance
Together with VGZ, Achmea and Cardano, a.s.r. created the Health Engagement Alliance (HEAL). These companies share the same vision of the role the financial industry has to play in enhancing health worldwide. In this alliance a first focus area is the Out of Home sector due to its impact on unhealthy diets. This industry has an important role to play in creating more healthy diets, given that its current offerings are to a large extent unhealthy. Portions are growing, and the amount of fat, sugar and salt is increasing. Therefore there is a great opportunity and responsibility for this sector to start offering healthier options. In 2024, HEAL started engaging this sector to stimulate Out of Home companies to play their part in solving the worldwide health crisis.
Other initiatives
In 2024, a.s.r. asset management joined the Investor Alliance for Human Rights. This alliance is a collective action platform for responsible investment that is founded on the respect for people’s fundamental rights.
Furthermore, in August 2024, a.s.r. asset management signed the Investor and Banking Statement on Vaping, aligning with a.s.r. asset management’s interests on health & well-being. There are many concerns on the negative health effects of vaping. This statement, coordinated by Tobacco Free Portfolios, addresses these concerns.
Voting
A shareholder's right to vote is essential for the proper functioning of a corporate governance system and a.s.r. asset management exercises this right. Its Voting Policy is developed in accordance with the Dutch Corporate Governance Code and a.s.r. asset management's own Policy on Responsible Investments. This Policy is applicable to all internally managed investments in listed equities. In 2024, a.s.r. asset management has voted at 97% of the Annual General Meetings (AGMs) of the companies in its equity portfolio. Information on how a.s.r. asset management voted in 2024 can be found in the voting report and dashboard via the website of a.s.r. asset management.
| (in %) | 2024 | 2023 |
|---|---|---|
| Director related | 74 | 44 |
| Audit | 1 | 2 |
| Capitalisation | 2 | 7 |
| ESG Environment | 3 | 4 |
| ESG Social | 5 | 6 |
| ESG Governance | - | 2 |
| Other | 3 | 7 |
| Remuneration | 11 | 24 |
| Shareholders rights | 1 | 4 |
| Total | 100 | 100 |
ISS Proxy Voting votes on behalf of a.s.r. asset management at AGMs. In March 2024 a.s.r. asset management adopted the ISS SRI module, which is stricter regarding ESG topics and in line with the revised Policy on Responsible Investments. This led to an increase in the total number of votes against management in 2024 (3,387) compared to 2023 (1,201).
Create positive impact
In 2024, a.s.r. has set an ambitious target to allocate 10% of its assets under management to impact investments by the end of 2027, of which at least two billion euro must be allocated to social impact, linked to themes health & well-being and human rights.
a.s.r. asset management defines impact investing as an investment approach that seeks to generate intentional and measurable impact alongside financial returns. With impact investing a.s.r. asset management aims to identify and finance businesses that make a significant positive, environmental or social, real-world impact. This can, for example, be achieved by investing in sectors where capital is scarce and funding has proven difficult or by investing in disadvantaged or vulnerable groups.
In 2024, a.s.r. asset management further increased its impact investments in all asset classes. Examples of a.s.r. asset management’s impact investments in 2024, which support the transition in energy, food and resources through private equity investments, are:
SET Ventures Fund IV aims to accelerate the energy transition by investing in early-stage European technology companies focused on advancing smart energy systems, decarbonisation, and sustainable energy solutions.
Pymwymic Healthy Food Systems Impact Fund II aims to invest in European companies driving sustainable transformation in the food system, focusing on scalable innovations that promote health, sustainability, and resilience across the food value chain.
Infinity Recycling’s Circular Plastics Fund aims to accelerate the transition to a circular economy by investing in advanced recycling technologies and companies that convert plastic waste into reusable materials, reducing environmental impact and dependence on virgin plastics.
Furthermore, with the addition of Aegon NL, the private debt impact portfolio has expanded: a.s.r. asset management is now financing social housing projects in the Netherlands with loans backed by the Waarborgfonds Sociale Woningbouw (WSW) guarantee, supporting affordability and sustainable housing development. See section 2.6.2 for a.s.r.’s performance on the impact investments target. For selection criteria per asset class, refer to the Policy on Responsible Investments.
Developing a plastic footprint methodology
At a.s.r. asset management, collaboration with other parties, such as NGOs, clients and other investors, and participating in working groups are essential to achieving the company’s goals.
In collaboration with the Plastic Soup Foundation and Earth Action, a.s.r. asset management launched a pilot on plastics in 2024, with the aim of creating a methodology to calculate investment portfolios’ plastic pollution footprints. The developed methodology takes into account two perspectives: the negative effects of investee companies on biodiversity and ecosystems due to plastic pollution, and the negative effects on human health resulting from (micro)plastics. In 2025, a.s.r. asset management will continue to determine the plastic footprint of its full investment portfolio.
ESG Research Centre
In 2023, a.s.r. and the University of Amsterdam (UvA) launched an ESG research centre: the Research Centre for Sustainable Investments & Insurance (RCSII). In 2024, research started in three key areas: ESG risks on real estate and mortgages, quantifying the impact of investments with AI and detecting greenwashing. The purpose of the RCSII is to actively contribute to responsible investing and insurance, benefiting a.s.r., other financial institutions and society. More information can be found on the RCSII website.
3.1.2.2Real Estate
a.s.r. real estate manages non-listed sector funds, which invest in retail and residential properties, offices, real estate on science parks, agricultural land and renewable energy in the Netherlands. These funds are open to institutional investors. a.s.r. is anchor investor in these funds. As a real estate investor, a.s.r. recognises its responsibility to contribute towards liveable and sustainable buildings, towns, cities and communities. a.s.r. real estate strives to contribute to a sustainable and climate-adaptive living environment for all – now and for future generations. The ESG vision encompasses four strategic pillars that form the core of the actions:
Reduce energy intensity & GHG emissions;
Adapt to climate change & related risks;
Regenerate biodiversity & ecosystems;
Improve well-being & social equality.
Reduce energy intensity & GHG emissions
Both urban environments and rural areas are responsible for a significant share of global CO₂ emissions. a.s.r. real estate cannot prevent the current effects, but it aims to limit its impact on the effects in the future. That is why a.s.r. real estate ensures that its buildings and agricultural land meet the Paris climate targets by 2045 at the latest, but preferably sooner.
Next to the asset-level reduction strategies, a.s.r. real estate installed solar panels on the roof of several buildings in its portfolio to further reduce GHG emissions. These panels vary in power output per panel, but together they achieve a total capacity of 7.971 kWp.
In the coming years, a.s.r. real estate will continue to execute asset-level reduction strategies and refine its Paris Proof roadmaps with annual energy consumption data, from the lessons learned and evolving insights.
Investing in renewable energy
ASR Dutch Green Energy Fund I owns four wind farms and one solar park. As a result, the fund owns 48 wind turbines and 60,000 solar panels with a combined capacity of 205 megawatts, and generates power equivalent to the annual consumption of 231,000 households per year.
a.s.r. real estate and BAM Wonen have signed an agreement to upgrade 69 dwellings in Houten dating from 1982 to Paris Proof standards. Following sustainability enhancements, the dwellings will achieve a minimum energy rating of A+++, up from the current average of D, and will meet the Paris Proof criteria. The outcome will be CO2-neutral dwellings, which means residents can enjoy lower energy bills and increased living comfort. This is the first time an institutional investor has made rental housing from the 1980s Paris Proof on this scale. The ASR Dutch Core Residential Fund of a.s.r. real estate aims to ensure its entire residential portfolio is Paris Proof by 2045.
Dwellings in Houten fitted with solar panelsAdapt to climate change & related risks
In recent years, society and nature have witnessed an increase in the frequency and intensity of extreme weather events such as heatwaves, torrential rain, floods and droughts. As the impact of climate change becomes more evident, the importance of a resilient portfolio becomes increasingly important as well. By understanding and anticipating the long-term risks of climate change, a.s.r. real estate strives to build a real estate portfolio that is progressively adaptable in order to ensure long-term sustainability, resilience and profitability.
a.s.r. real estate conducted comprehensive climate risk assessments for all properties in its portfolio based on the Framework for Climate Adaptive Buildings (FCAB). This assessment identifies vulnerabilities to climate-related impacts, including four major climate risks: heat, drought, flooding and extreme weather. The climate risk score is based on:
The environmental score is an estimate of the climate effects for the immediate vicinity of a building.
The building score is an estimate of the vulnerability of a building to the various climate effects, based on building-specific characteristics.
The combined environmental and building score results in the ‘climate risk score’, which is used to identify the assets that are exposed to high physical climate risks. The outcome of the climate risk assessment was used to determine the extent to which climate risks are acceptable, and what actions and adaptation solutions are appropriate to mitigate climate risks. In 2024, climate adaptation plans were made for the properties with a high or very high risk profile.
Regenerate biodiversity & ecosystems
Biodiversity is a fundamental pillar of ecological balance and sustainability. A loss of biodiversity leads to adverse impacts on well-being and quality of life, as well as on food security, resilience to natural disasters and the availability of water and resources. The built environment disrupts important habitats for animal and plant species. a.s.r. real estate therefore aims to contribute as much as possible to conserving and enhancing biodiversity on and around properties.
Biodiversity Framework
a.s.r. real estate has established a Biodiversity Framework in collaboration with an external ecologist to further improve the biodiversity of its urban real estate portfolio. This framework is integrated into day-to-day operations, ensuring that biodiversity is considered in relevant aspects of asset and property management. The framework provides guidelines to increase the share of vegetated area and capitalise on nature-related opportunities.
In addition, a.s.r. real estate conducted a baseline analysis to gain additional insight into the share of non-vegetated surface area, compared to the total surface area of all urban real estate assets. The insights obtained from this analysis are being used to formulate a strategic plan and to identify promising assets to enhance the potential ecological value in the portfolio.
Rewarding sustainable farming
The ASR Dutch Farmland Fund has a reward system for its farmers who operate sustainably, to help safeguard the continuation of farming and challenge climate change and the loss of biodiversity. Under certain conditions, new and current lessees who comply with certain sustainability requirements such as using sustainable fertiliser can be awarded discounts of 5%-10% on the ground rent they pay for leasing land. In 2024, 83 new green lease contracts were concluded, representing 99% (1,220 of 1,225 hectares) of the new contracts. The total number of green lease contracts is 514 (9.169 of 38.237 hectares).
Improve well-being & social equality
To ensure a future-proof living environment for all, a healthy living environment and equal opportunities are of great importance. Unfortunately, equal treatment and opportunities are not a given. With its investments, a.s.r. real estate aims to make a positive contribution to the social aspects of the living environment.
a.s.r. real estate believes that tenants who are more involved with their home, building, living environment and landlord are more satisfied and aware. a.s.r. real estate focuses on improving tenant satisfaction, health and well-being, and awareness of sustainable living, and therefore works continuously on a participation programme involving various forms of tenant participation. Activities range from taking an active role in sustainability projects and tenants’ associations to ESG newsletters and events for tenants.
Impact investments
The Global Impact Investing Network (GIIN) defines impact investments as: 'Investments made in companies, organisations and funds with the intention of generating positive, measurable social and environmental impacts alongside a financial return.' a.s.r. real estate uses this definition to calculate a quantifiable impact investment for real estate activities.
In 2024, a.s.r. real estate focused on the following real estate impact themes:
Affordable housing;
Dutch Science parks;
Renewable energy;
International non-listed real estate;
Sustainable mobility.
Affordable housing
The ASR Dutch Core Residential Fund has a clear focus on affordable housing. The Fund designates rents of up to € 1,350 per month as affordable, and keeps a considerable part of the portfolio in this segment. To ensure affordable dwellings in the standing portfolio remain affordable in future, the Fund implements moderate rental increases, caps rent in line with current market trends and actively lowers living costs by implementing energy-saving measures.
Dutch Science parks
The ASR Dutch Science Park Fund strives to make a positive societal impact by encouraging the further development of science parks in the Netherlands by investing in real estate for the broad range of functions that are needed for science park ecosystems to thrive. By doing so, the Fund provides space for companies to work on a wide range of innovative and sustainable products and solutions that contribute to a better world.
Renewable energy
ASR Dutch Green Energy Fund I makes impactful investments by acquiring and managing wind parks and solar farms. In doing so, a.s.r. is contributing to the energy transition and a sustainable living environment.
International non-listed real estate
a.s.r.'s strategic asset allocation in real estate includes European non-listed real estate. These investments present opportunities for achieving impact through the following themes: affordable housing, green buildings and health. a.s.r. intends to increase the assets that meet the criteria of these themes over the coming years.
Sustainable mobility
The ASR Dutch Mobility Office Fund makes a positive environmental impact through enabling CO2 emission reductions for tenant employee mobility to the Fund’s office buildings. The Fund does this by investing exclusively in offices located close to public transport hubs, adding office stock on these locations, and through specific measures aimed at stimulating sustainable mobility for each of the Fund’s office buildings.
Sustainable investing – GRESB benchmark
Once again, in 2024, a.s.r. real estate’s residential, office, science park and retail fund was awarded the maximum five-star rating in the GRESB benchmark. This means that the funds are among the 20% most sustainable GRESB funds in the world according to the GRESB benchmark. For the third year in a row, the ASR Dutch Science Park Fund was named Global Non-listed Sector Leader in the Technology/Science category. More data coverage on energy, greenhouse gas, waste and water data, coupled with more extensive climate risk data, helped a.s.r. real estate’s funds to obtain high scores in the benchmark.
3.1.2.3Mortgages
a.s.r. offers its mortgage products through two different mortgage brands: Aegon and a.s.r. From 2025, the mortgage businesses will be further integrated.
To reduce the carbon footprint of homes, a.s.r. aims to enable its mortgage customers to live in energy-efficient homes. This includes not only those who already reside in energy-efficient properties but also those whose homes have lower energy label ratings. a.s.r. strives to assist customers in making their homes more sustainable and supports customers by removing barriers to improving home sustainability. a.s.r. supports this by:
Providing information: Making homes more sustainable starts with informing residents about the possibilities. a.s.r.'s Sustainable Housing platform features blogs, roadmaps and various videos on energy saving, sustainable housing and sustainable gardening. Customers can also subscribe to a monthly newsletter with tips and examples relating to sustainable living.
Financing: Besides using their own money to make their homes more sustainable, people can get a Sustainability Mortgage from a.s.r. As standard practice, a.s.r. offers a Sustainability Mortgage of € 10,000 with every interest rate offer. The Sustainability Mortgage is offered at an interest rate discount compared to regular mortgage product. This allows homeowners who want to take out a mortgage with a.s.r. to borrow extra money for energy-saving measures, such as a heat pump, solar panels or insulation. Existing customers have the option to follow a shorter route and apply for the Sustainability Mortgage at a lower cost without advice ('execution only'). In the personal (digital) environment, they can take out a Sustainability Mortgage of up to € 10,000. By offering this, a.s.r. lowers the threshold to make customers’ current homes more sustainable. a.s.r. also increased the amount that can be borrowed with the Verduurzamingshypotheek from € 25,000 to € 65,000 and extended the term of the mortgage from 15 years to 30 years. This lowers monthly costs for customers.
Realisation: In 2024, a.s.r. worked together with online platforms (De Energiebespaarders, HomeQgo) for people who want to make their homes more sustainable. The advice and service provided are free for both new and existing customers with an a.s.r. mortgage. The advice includes a comprehensive home savings check at a customer’s home, advice on energy-saving measures, quotes for the possible solutions and help with the installation.
The emphasis on making homes more sustainable is paying off. Of all new mortgages taken out with a.s.r. product in 2024, almost 27% included some form of financing for sustainability. According to research conducted by a.s.r. in collaboration with Calcasa, the homes that were made more sustainable went up an average of 1.6 energy label points due to the measures financed.