Climate change is one of today’s greatest challenges. A transition to a net-zero economy and a society that is resilient to the effects of climate change is crucial for the liveability of our planet. a.s.r. acknowledges the importance of this transition and, as an insurer and investor, wants to contribute to it.

The following table presents an overview of the material climate-related impacts, risks and opportunities identified, along with the corresponding policies, actions and targets. The purpose of this table is to highlight the linkages and dependencies among these elements.

6.2.1.1Managing impacts, risks and opportunities

Description of the processes to identify and assess material climate-related impacts, risks and opportunities

a.s.r. has identified and assessed several climate-related impacts, risks and opportunities. Climate related risks can be climate-related physical risks (risks related to climate hazards) or climate-related transition risks (risks related to the transition to a net-zero economy and a society that is resilient to the effects of climate change).

See section 6.1.4.3 for more information about the process to assess material impacts, risks and about the consolidation process.

Impacts

a.s.r.'s product lines and entities identified their impacts on climate change, in particular their GHG emissions, in expert sessions and by making use of various guidance and standards.

This resulted in the identification of short-, medium- and long-term actual and potential impacts for some of the Supporting Processes departments (Facilities, Procurement and IT), all distribution and services entities and almost all product lines (except Pensions, Income and Individual life).

Physical risks

a.s.r.'s product lines and entities also identified their physical risks and opportunities related to the sub-topic climate change adaptation in expert sessions and by making use of various tools.

This resulted in the identification of short-, medium- and long-term actual and potential risks for the product lines Real Estate, Mortgages and P&C.

Real Estate

Real Estate has made use of its Climate Risk Monitor to identify climate-related hazards in its value chain over the short, medium and long term. This is an in-house-developed tool, with which Real Estate has implemented the Framework for Climate Adaptive Buildings (FCAB) for its portfolio. This framework was drawn up by the Dutch Green Building Council (DGBC) together with a variety of financial institutions (including Real Estate), knowledge institutes, advisors and solutions to achieve a smooth and sector-wide methodology for assessing physical climate risks at property level¹.

To screen whether its assets may be exposed and are sensitive to the identified climate-related hazards, creating gross physical risks, Real Estate identified the expected climate impacts on the environment of the buildings in the portfolio and combined this with the vulnerability of the buildings themselves.

Real Estate used a long-term horizon, which is defined as 2050. This is in line with the Strategic Asset Allocation long-term time horizon, which is 25 years forward-looking.

For the assessment of the extent to which real estate objects are exposed and sensitive to the identified climate-related hazards, Real Estate made use of the FCAB to calculate the climate risk score, a combination of the environmental score and the building score. This methodology made it possible to identify and prioritise climate risks through screening (or 'red flagging') the total real estate portfolio. For the properties identified with a material risk, an in-depth analysis (‘deep dive’) was carried out to identify the adaptation solutions that can reduce the identified physical risks.  

Identification and assessment were informed by at least high-emissions climate scenarios, as the FCAB works with the KNMI’14 projections for 2050 which contain high-emissions climate scenarios. The KNMI’23 projections will be applied when available in a resolution that meets the requirements for the analysis.

Mortgages

Mortgages has made use of the Climate Risk Monitor of Real Estate to identify the climate-related hazards in its value chain over the short, medium and long term.

To screen whether its assets may be exposed and sensitive to the identified climate-related hazards, creating gross physical risks, Mortgages identified the risks specifically for residential buildings in the Netherlands and identified the expected climate impacts on the environment of the buildings in the mortgage portfolio.

Mortgages has used a long-term time horizon, which is defined as 2050. This is in line with the Strategic Asset Allocation long-term time horizon, which is 25 years forward-looking.

For the assessment of the extent to which residential objects are exposed and sensitive to the identified climate-related hazards, Mortgages made use of the FCAB, taking only the environmental score into account. This methodology made it possible to identify and prioritise climate risks through 'red flagging’.

Identification and assessment were informed by at least high-emissions climate scenarios as the FCAB works with the KNMI’14 projections for 2050, which contain high emissions climate scenarios. The KNMI'23 projections will be applied when available in a resolution that meets the requirements for the analysis.

P&C

P&C made use of the findings in the report “Accelerating climate adaptation”, which was published by the Working Group on Climate Adaptation Finance Sector, a multi-stakeholder working group of the Sustainable Finance Platform, to identify the climate-related hazards in its value chain over the short, medium and long term.

To screen whether its underwriting activities may be exposed and sensitive to the identified climate-related hazards, P&C also made use of the findings in the report “Accelerating climate adaptation”, which provides an indication of whether the underwriting activities of insurers may be affected by climate-related hazards, thereby creating risks.

P&C has defined short-, medium- and long-term horizons in accordance with the definitions used in the Strategic Risk Analysis (SRA) and which are linked to the strategic planning horizons.   

To assess the extent to which insured residential objects are exposed and sensitive to the identified climate-related hazards, P&C made use of the Dutch Association of Insurers’ Climate Damage Monitor, which demonstrates the effect extreme weather events have on the claims burden of property insurers.

Identification and assessment were informed by at least high-emissions climate scenarios, as the report “Accelerating climate adaptation” works with the KNMI’23 climate scenarios, which contain high emissions climate scenarios.

Information that applies to all the product lines that have identified climate-related physical risks

How the identification and assessment of climate-related physical risks by the entities and product lines were informed by the climate-related scenario analysis, which includes a range of climate scenarios, is described below. As to how the climate scenarios used are compatible with critical climate-related assumptions made in the financial statements; no critical climate-related assumptions are made in the financial statements.

Transition risks

a.s.r.'s product lines and entities identified their transition risks and opportunities related to the sub-topic climate change mitigation in expert sessions and by making use of several tools.

This resulted in the identification of short-, medium- and long-term actual and potential transition risks and opportunities for the product lines Asset Management, Real Estate, Mortgages and P&C.

Asset Management

Asset Management has identified potential transition events over the short-, medium- and long-term in its value chain by using the latest climate science to identify how different sectors and companies might be impacted by various transition events, such as regulatory changes, market shifts and technological advancements, depending on the speed of the low-carbon transition.

Asset Management screened whether the investment decisions it has made may be exposed to transition events by analysing its exposure to high-risk sectors using guidance from bodies such as the European Insurance and Occupational Pensions Authority (EIOPA), complemented by research from a.s.r.’s ESG data providers on company-level exposure to transition risks. Additionally, Asset Management performed activity-based screening to identify its exposure to companies involved in activities that are incompatible with achieving the goals of the Paris Agreement. These methods collectively enabled the evaluation and management of transition risks across clients' portfolios.

To assess the extent of the exposure and sensitivity of its assets to the identified transition events, Asset Management made use of EIOPA’s NACE codes associated with transition risk.

The identification of transition events and the assessment of exposure were informed by climate-related scenario analysis, considering at least a scenario consistent with the Paris Agreement, to understand what is required to limit global warming to ideally 1.5°C.

Asset Management identified assets that are incompatible or may need significant efforts to become compatible with a transition to a climate-neutral economy by using data from a.s.r.’s ESG research providers on transition risk management and exposure to activities that may be incompatible with achieving the goals of the Paris Agreement.

Real Estate

Real Estate has identified potential transition events over the short, medium and long term in its value chain by using various documents, research papers and sectoral guidelines, including European legislation, publications of the Dutch Central Bank (De Nederlandsche Bank - DNB), the Authority for the Financial Markets (Autoriteit Financiële Markten - AFM) and the ESG risk framework of the European Association for Investors in Non-Listed Real Estate Vehicles (INREV).

Real Estate screened whether its assets may be exposed to the identified transition events by making use to the Carbon Risk Real Estate Monitor (CRREM) and applicable legislation such as the Energy Performance of Buildings Directive (EPBC IV) and the EU Taxonomy Regulation.

To assess the extent of the exposure and sensitivity of its assets to the identified transition risks, Real Estate has identified the assets that are at transition risk based on the actual (energy intensity) and theoretical (energy label) energy performance that is available for the real estate property.

The identification of transition events and the assessment of exposure were informed by climate-related scenario analysis, considering at least a scenario consistent with the Paris Agreement, as Real Estate uses the 1.5°C CRREM Pathway consistent with the Paris Agreement to identify stranded assets based on the actual energy performance. 

Real Estate has not identified any assets that are incompatible or may need significant efforts to be compatible with a transition to a climate-neutral economy.

Mortgages

Mortgages has identified potential transition events in the short, medium and long term by using various documents and research, including applicable legislation, publications of the DNB, the AFM and the Dutch government’s National Energy and Climate Plan, including the National Climate Agreement. 

Mortgages screened whether its assets may be exposed to the identified transition events, by conducting an analysis of the portfolio to determine which mortgaged assets have a potential transition risk.

To assess the extent of assets’ exposure and sensitivity to the identified transition risks, Mortgages identified the assets that are at transitional risk based on the energy labels that are available for the buildings in the portfolio.

The identification of transition events and the assessment of exposure were informed by climate-related scenario analyses, considering at least a scenario consistent with the Paris Agreement, during the aforementioned research to determine the least energy-efficient houses and the steps that need to be taken to become compatible with achieving the goals of the Paris Agreement.

Mortgages identified assets that are incompatible or may need significant efforts to be compatible with a transition to a climate-neutral economy by assessing the energy labels of the buildings in the portfolio.

P&C

P&C has identified potential transition events over the short, medium and long term in its value chain by using the Dutch government’s National Energy and Climate Plan, including the National Climate Agreement, as well as forecasts by various Dutch banks, which both contain information on the plans of the Dutch government and the various sectors in the Netherlands to transition to climate neutral.

P&C screened whether its underwriting activities may be exposed to the identified transition events, by making use of information from the Dutch Association of Insurers, as well as expert findings.

To assess the extent of the exposure and sensitivity of underwriting activities to the identified transition events, P&C calculated the share (percentage) of Insurance Contract Revenue (ICR) that is related to NACE codes, which are connected to the fossil fuel industry. 

The identification of transition events and the assessment of exposure were informed by climate-related scenario analysis, considering at least a scenario consistent with the Paris Agreement, as the aforementioned National Climate Agreement is based on a scenario consistent with the Paris Agreement.

By calculating the ICR related to NACE codes, which are connected to the fossil fuel industry, P&C has identified the underwriting activities which may be incompatible or may need significant efforts to be compatible with a transition to a climate-neutral economy.

Information that applies to all the product lines that have identified climate-related transition risks

The identification and assessment of climate-related transition risks by the entities and product lines was informed by the climate-related scenario analysis which includes a range of climate scenarios is described below. In regard to how the climate scenarios used are compatible with critical climate-related assumptions made in the financial statements, no critical climate-related assumptions are made in the financial statements. This may be considered in the future.

Material impacts, risks and opportunities and their interaction with strategy and business model

For each material climate-related risk which a.s.r. has identified, an explanation of whether a.s.r. considers it to be a climate-related physical risk or a climate-related transition risk can be found in section 6.1.4.4.

The analysis of the resilience of its strategy and business model in relation to climate change is part of the resilience analysis which in its turn is part of the Strategic Asset Allocation (SAA) study. The scope of the SAA is the whole of a.s.r., and specifically the supervised entities (OTSOs). For the non-supervised entities, a static cash flow was assumed and the sensitivity to climate change of the cash flows generated for a.s.r. was not taken into account. All material climate-related physical risks and transition risks are part of the analysis on an aggregated level. One of the constraints of the model is that all climate-related risks, both physical and transitional, are evaluated in a combined manner. Also, the scenarios do not contain the climate-related tipping point effects nor biodiversity-related impacts. All company-level scenarios are based on national data from the relevant countries or regions in which a.s.r. invests or operates. For the underlying risk assessment for the product lines (e.g. Mortgages and Real Estate) the data are linked to geospatial coordinates specific to investment locations.

The resilience analysis was carried out in 2024 as part of the Strategic Asset Allocation study which takes place annually. The study uses five climate scenario analysis.

• The orderly net zero scenario assumes a temperature rise of 1.5°C. The assumptions were made that a highly ambitious set of policies aimed at reducing emissions are introduced, the world experiences comparably low impacts from acute physical risk and that the financial market implications arising from transition and physical risks are not materially disruptive.

• The disorderly net zero scenario assumes a temperature rise of 1.5°C. The assumptions were made that a highly ambitious set of policies aimed at reducing emissions are introduced, the world experiences comparably low impacts from acute physical risk and that there are disruptive effects in financial markets as climate risks are abruptly priced-in in 2025.

• The delayed net zero scenario assumes a temperature rise of 2.0°C. The assumptions were made that a highly ambitious set of policies aimed at reducing emissions are introduced but are not implemented on the scale that is required to reach net zero emissions by 2050. Also, the world is faced with moderate impacts from extreme weather events and temperature change and financial market disruption arising from transition risks occur during the late 2020s.

• The too little too late scenario assumes a temperature rise of 2.6°C. The assumptions were made that policymakers take moderate steps to address climate change, thus regulation and taxation of fossil fuel-based technologies is limited. This scenario reflects high risks from extreme weather events and high temperatures and these risks have material financial market implications in the 2020s and 2030s, due to lower expected performance.

• The failed transition scenario assumes a temperature rise of 3.7°C. The assumptions were made that there are no new low-carbon policies enacted and some existing ones are scaled back. Also, multiple climate tipping points are reached and many countries suffer from extreme drought and water shortage. The lost productivity and extreme weather events have large financial market implications in the 2020s and 2030s, due to lower expected performance.

The above mentioned key forces and drivers, taken into consideration in each scenario, are macroeconomic trends and assumptions relevant to a.s.r.

A time horizon of 25 years is applied, which is considered long-term in the context of the Strategic Asset Allocation. This endpoint was chosen in line with the Paris Agreement aim for net zero by 2050 and should therefore cover plausible risks and uncertainties. The time horizon for GHG emission reduction targets, on the other hand, focuses on the nearer term with a time horizon of six years. This deviation is a result of immediate emission reduction action being required now, whereas climate risk impact on the business is expected to have a significant impact in the longer term.

The resilience analysis has led to the following results:

The model was created in collaboration with ORTEC Finance and is aligned with state-of-the-art science by translating biophysical impacts to economic impacts of climate change. For the biophysical impacts a.s.r. uses the UN IPCC 6 climate scenarios as a basis. These impacts are then interpreted using a sophisticated non-equilibrium econometric model. In comparison to an equilibrium model, it has the advantage of not assuming optimising behaviour, not deriving historical relationships, having a bounded rationality with uncertainty, including path dependence and learning effects, and assuming endogenous money.

This resilience analysis has resulted in the conclusion that a.s.r. does not need to adjust its strategy and business model now. a.s.r. will keep assessing the resilience of its strategy and business model to climate change in the coming years. If at any time necessary, a.s.r. believes that it will be sufficiently able to adjust or adapt its strategy and business model to climate change over the short, medium and long term, including securing ongoing access to finance at an affordable cost of capital, the ability to redeploy, upgrade or decommission existing assets, shifting its products and services portfolio, or reskilling its workforce.

6.2.1.2Transition plan

Transition plan for climate change mitigation

a.s.r. has determined several GHG emission reduction targets, of which currently some, but not all, are compatible with the limiting of global warming to 1.5°C in line with the Paris Agreement. a.s.r. is committed to submit near-term science-based targets compatible with limiting global warming to 1.5˚C in line with the Paris Agreement, to the Science Based Target Initiative (SBTi) for validation. See section 6.2.1.4 for more information about a.s.r.'s GHG emission reduction targets.

a.s.r. has determined various decarbonisation levers and has planned key actions, varying per product line, to achieve its GHG emissions reduction targets. Levers include a.o. product development (e.g. insurance products which encourage the use of green alternatives), engagement (e.g. engagement actions which aim to stimulate customers and investees to make the energy transition) and impact investing (e.g. investments in renewable energy solutions), see section 6.2.1.3 for more information about a.s.r.'s key climate mitigation actions and decarbonisation levers.

Investments and funding may be needed to support the implementation of a.s.r.'s transition plan for climate change mitigation, including action plans of the various product lines. See section 6.2.1.3 for an explanation and quantification of the investments and funding to support the action plans of the various product lines, where significant. a.s.r. has not identified material locked-in GHG emissions in its products or services so it does not currently expect any such emissions to jeopardise the achievement of its GHG emission reduction targets or drive transition risk.

a.s.r. has economic activities that are covered by delegated regulations on climate adaptation or mitigation under the EU Taxonomy Regulation but a.s.r. has not yet established any formal objectives or plans for aligning its economic activities with the criteria established in the EU Taxonomy environmental objectives. a.s.r. does not deem this a risk for achieving its emission reduction targets though. There are no significant CapEx amounts invested during the reporting period related to coal, oil, and gas-related economic activities and a.s.r. is not excluded from EU Paris-aligned benchmarks.

a.s.r. has embedded its transition plan for climate change mitigation in and aligned it with its broader business and financial planning:

• Key elements of integrating climate considerations into its business strategy include the setting of a non-financial target for emission reduction of financed emissions, the development of central sustainability policies, setting up a central sustainability risk framework and introducing sustainable central value chain and contract management. These cascade through to the decentralised targets, policies, operational processes, risk management frameworks, and value chain and contract management of the various product lines.

• Climate-related considerations are integrated into the organisation’s SAA, which includes various climate scenarios and safeguards a.s.r.’s financial performance. See section 6.2.1.1 for further information. The SAA cascades through to a.s.r.’s reinsurance schemes and investment and pricing policies of the various product lines.

Please see section 6.1.3.1 for more information on the role of the administrative, management and supervisory bodies with regard to the transition plan for climate change mitigation.

a.s.r. has already made progress on implementing its transition plan for climate change mitigation across the organisation. See section 6.2.1.4 for further information on already achieved emission reductions, how the progress of the emission reduction targets is monitored and reviewed and whether progress is in line with the initial planning.

a.s.r. has also published a more comprehensive Climate Transition Plan on its website.

6.2.1.3Policies and actions

Policies

Policies related to climate change mitigation and adaptation

a.s.r. has several policies in place to manage its material impacts, risks and opportunities related to climate change mitigation and adaptation:

• The Environmental Policy Statement of Facilities;

• The Policy on Responsible Investments;

• The ESG Policy of Real Estate;

• The Mortgages Transition Plan;

• The Policy on Sustainable Insurance;

• The Procurement Policy of Health.

The Environmental Policy Statement of Facilities 2.2

The general objective of the Environmental Policy Statement of Facilities is for a.s.r. to maintain its own environmental performance at a socially responsible level. The policy’s key content is a framework set up to reduce a.s.r.’s scope 1 and 2 emissions as well as a.s.r.'s scope 3 emissions related to its own operations.

The scope of the Environmental Policy Statement is the activities conducted in connection with a.s.r.'s office locations. The policy covers direct emissions from owned or controlled sources, indirect emissions from the generation of purchased electricity and indirect emissions that occur from business travel, employee commuting and waste.

The Environmental Policy Statement mainly addresses climate change mitigation. This is supported by actions aimed at improving a.s.r.’s environmental performance. Additionally, energy efficiency is a core aspect that the policy addresses. a.s.r. has committed to improving the energy performance of its head office, aiming to meet the Paris Proof standard by 2030. This includes reducing energy consumption for heating, cooling and ventilation to a maximum of 50 kWh per gross square metre in line with and even exceeding the Paris Proof standard. Furthermore, the policy supports the use of renewable energy wherever possible, for example by stimulating the use of the solar panels placed on and around a.s.r.'s head office.

Procurement 2.12.2

Procurement does not yet have a dedicated environmental procurement policy but it has included ESG criteria in its 'Further agreement', its Code of Conduct for Suppliers, and in its outsourcing policy.

IT 2.2

IT currently has no formal policy concerning climate change. However, IT's management team has a clear understanding of how decisions on power purchase and consumption impact a.s.r.'s carbon footprint. There is a clear ambition to incorporate climate change into IT's procurement policy in 2025.

Distribution and services entities 2.2

The distribution and services entities do not yet have environmental policies; some of them are currently in the process of developing one, where possible in line with the Environmental Policy Statement of Facilities.

The Policy on Responsible Investments 2.12.22.4

The Policy on Responsible Investments of Asset Management sets out a framework for integrating ESG factors into all investment decisions. A key focus of the policy is on mitigating climate-related risks and supporting the transition to a low-carbon economy. The policy outlines clear criteria for excluding investments in sectors and companies that conflict with the goals of the Paris Agreement, such as those involved in coal mining or unconventional oil and gas. The policy also includes requirements for active ownership: where a.s.r. engages with companies to encourage better climate practices, and impact investing: where a.s.r. finances sectors and projects that directly contribute to the energy transition.

The Policy on Responsible Investments applies to all assets managed by Asset Management. This includes proprietary assets of a.s.r., investment mandates managed on behalf of clients, and funds created and offered by Asset Management. 

The Policy on Responsible Investments is guided by the goals of reducing harm, driving change and creating positive impact. In order to address climate change mitigation, the policy contains exclusion rules that aim to avoid investing in activities with an outsized impact on climate change or that are incompatible with the low-carbon future needed to achieve the goals of the Paris Agreement. Asset Management focuses on engaging with companies to develop climate strategies and transition plans that align their businesses with the Paris Agreement. Additionally, Asset Management supports the energy transition through investments in renewable energy and low-carbon technologies via impact investments.

The ESG Policy of Real Estate 1.11.22.12.22.3

The ESG Policy of Real Estate has the following strategic themes: Reduce energy intensity & GHG emissions; Adapt to climate change & related risks; Regenerate biodiversity & ecosystems; and Improve well being & social equality. The scope of the ESG Policy of Real Estate is all assets under management.

The ESG Policy of Real Estate addresses climate change mitigation as it sets out a framework to acquire low-carbon assets. The policy also addresses climate change adaptation and energy efficiency by setting up rules for renovating standing investments. Additionally, it addresses renewable energy by setting out a framework to acquire renewable energy projects such as windmill parks.

The Mortgages Transition Plan 1.11.22.12.22.4

The Mortgages Transition Plan sets out a framework to reduce negative impact on climate change and mitigate climate-related physical and transition risks in the portfolio. The scope of the Mortgages transition plan is Mortgages' scope 3 financed emissions (limited to scope 1 and 2 emissions of the property financed by the mortgage).

The Mortgages Transition Plan addresses climate change mitigation and energy efficiency by setting up a framework for more accessible and less costly mortgage lending to make homes more sustainable and energy efficient. Additionally, the Mortgages Transition Plan supports climate change adaptation by facilitating participation in partnerships to increase awareness and knowledge surrounding this theme.

The Policy on Sustainable Insurance 1.11.21.32.12.22.32.4

P&C makes use of the Policy on Sustainable Insurance. An objective of the policy is to reduce negative impact on climate change, manage climate-related physical and transition risks and seize climate-related opportunities. The Policy on Sustainable Insurance contains rules on sustainable underwriting, the policy has a key focus on insuring the energy transition and the policy sets out frameworks for sustainable product development and sustainable claims adjustment. The scope of the Policy on Sustainable Insurance is Non-life and Life insurance products and services. The most relevant parts for P&C are highlighted below.

In order to manage its impact on climate change and with regards to object related insurance only, the Policy on Sustainable Insurance contains a set of exclusion rules that aim to avoid insuring companies with an outsized impact on climate change, such as producers of thermal coal and unconventional gas and oil. Producers of conventional energy products are required to commit to the Paris Agreement target and to have a transition plan. For other companies with a substantial volume operating in the chain of the fossil fuel industry or in a sensitive sector, an ESG risk assessment needs to be carried out. Furthermore, the Policy on Sustainable Insurance addresses climate-related physical and transition risks and seizing climate-related opportunities by setting out a framework for sustainable product development.

To support the energy transition to renewable energy, the Policy on Sustainable Insurance addresses insuring companies in the renewable energy sector through the P&C's Sustainability Desk. It addresses climate change mitigation by setting out a framework for sustainable claims adjustment with a focus on repair instead of replace of damaged items by certified sustainable repair network companies. Certification entails limitations on GHG emissions during the repair process. Climate adaptation is also part of the Policy on Sustainable Insurance as it sets out a framework for sustainable product development.

The Procurement Policy of Health 2.2

Agreements from the joint policy in the healthcare sector which follows the GDDZ 3.0 have been translated into the Procurement Policy of Health. Consequently, the policy objectives of the Procurement Policy of Health are:

• Making healthcare real estate more sustainable;

• Working towards sustainable mobility;

• Discovering and tackling other GHG hotspots.

The Procurement Policy of Health addresses climate change mitigation by aiming to make healthcare real estate more sustainable, working towards sustainable mobility and discovering and tackling other GHG hotspots in the healthcare sector. Third-party standards that Health commits to respect through the implementation of the Procurement Policy of Health are the GDDZ 3.0.

Consideration is given to the interests of key stakeholders when setting the Procurement Policy of Health in alignment with the GDDZ 3.0 through reducing administrative burdens for healthcare providers. The current Procurement Policy has been published on 1 April 2024 and has been discussed during meetings with healthcare providers. 

Funeral

Due to the type of insurance (largely capital insurance) and the lack of insight into how the insurance compensation is spent, it is difficult for Funeral to determine which frameworks and rules it can introduce to effectively address its impact on climate change. Funeral is committed to being able to draw up a policy that provides a framework or set of rules to prevent or limit negative impact.

Information that applies to all the entities and product lines which have policies in place

The management teams of the relevant product lines are accountable for the implementation of the various policies, including the monitoring of the effectiveness of the policy. Through the implementation of the various policies, a.s.r. commits to respect the Climate Commitment for the Dutch financial sector.

Actions

Actions in relation to climate change policies

a.s.r. has taken various key actions to manage its climate related impacts, risks and opportunities and, where applicable, achieve its policy objectives.

Key actions of Facilities 2.2

In collaboration with HR, Facilities has determined a set of key actions aimed at reducing its negative impact, in line with the Environmental Policy Statement. The key actions presented by outcome and in case of a climate mitigation action the decarbonisation lever, are:

• Increase energy efficiency of a.s.r.'s office locations by optimising the use of office locations and space and implementing measures to reduce energy usage;

• Increase the use of renewable energy at a.s.r.'s office locations by using renewable energy from its own solar panels and purchasing market-based green electricity;

• Reduce GHG emissions by company vehicle mobility through electrification of the lease car fleet (decarbonisation lever: electrification of transportation reduces emissions);

• Reduce GHG emissions of employee commuting by promoting eco-friendly transportation options by offering an NS-Business Card and a tax benefit for new bicycles used for commuting as well as promoting hybrid working by optimising hybrid working systems and an envisaged 0.4 workstation per FTE at a.s.r.'s head office (decarbonisation lever: low/no carbon/no transportation reduces emissions).

The scope of these key actions is direct emissions from owned or controlled sources, indirect emissions from the generation of purchased electricity and indirect emissions that occur from business travel, employee commuting and waste generated in own operations.

Facilities with the co-operation of HR implements its key actions on an ongoing basis. The reduction of carbon emissions of company vehicle mobility runs until 2028 when a.s.r.'s entire lease car fleet is expected to be fully electric.

The key climate mitigation actions of Facilities have already led to concrete results, such as a reduction in emissions of a.s.r.'s head office and vehicle fleet. In 2024, Facilities reduced its own operations GHG emissions in scope of its emission reduction target by 37% compared to the base year 2023. The expected emission reduction will continue to increase as these initiatives are further implemented.

Procurement 2.12.2

Procurement has not yet initiated key actions as they plan to adopt these after they have set up a dedicated environmental procurement policy.

Key actions of IT 2.2

IT has adopted a set of actions to reduce its negative impact on climate change. The key actions presented by outcome and in case of a climate mitigation action the decarbonisation lever, are:

• Increase energy efficiency by purchasing modern data centre hardware with a lower carbon footprint;

• Increase the use of renewable energy by using green energy for the data centres.

• Reduce carbon emissions by longer use of current employee hardware where possible, leading to less carbon emissions in connection to replacements of employee hardware (decarbonisation lever: extend lifetime instead of replace hardware reduces emissions).

These key actions concern the data centre hardware in Utrecht and Woerden and the end-user hardware for all a.s.r. employees. The actions are continuously carried out by IT, as there will always be changes in a.s.r.’s data centre composition and workforce composition, which require the organisation to fulfil the need to continue business as requested.

IT has already delivered concrete results in relation to its climate mitigation actions: GHG emissions of the energy consumption at the Utrecht data centre were zero in 2024 following a transition to green energy consumption. It is expected that the GHG emissions of the energy consumption at the Woerden data centre will also be reduced to zero in due course.

Key actions of distribution and services entities 2.2

The distribution and services entities have not yet initiated any key actions, as their environmental policies are still under development, and actions related to these policies will be implemented thereafter, with the exception of Corins, which has nevertheless adopted a set of key actions aimed at reducing its negative impact in line with a.s.r.'s Environmental Policy Statement.

Key actions of Asset Management 2.12.22.4

Asset Management has adopted a set of actions to manage and mitigate the material impacts, risks and opportunities related to climate change. These actions are integral to the Policy on Responsible Investments and align with the organisation’s commitment to supporting the transition to a low-carbon economy. Key actions by outcome and in case of a climate mitigation action the decarbonisation lever, include:

• Manage risks by investment criteria: Asset Management, for example, excludes investments in sectors and activities that are incompatible with achieving the goals of the Paris Agreement, such as thermal coal production and coal-fired power generation. The exclusion rules and criteria are regularly reviewed and may be tightened where deemed necessary.

• Mitigate impact and manage risks by active ownership: Asset Management actively engages with companies within its investment portfolios to encourage the development and implementation of robust climate strategies and transition plans. Asset Management collaborates with like-minded peers to strengthen its engagement efforts and increase its influence with investee companies (decarbonisation lever: engagement leads to investees developing and implementing transition plans).

• Support the transition to a low-carbon economy by impact investing: Asset Management supports the transition to a low-carbon economy by making impact investments in renewable energy and other low-carbon technologies. These investments aim to contribute positively to global climate mitigation efforts.

• Support the transition to a low-carbon economy by industry participation and collaboration: Asset Management aims to stimulate positive change in the financial sector through active participation in industry bodies and collaborations focused on climate action. For example, a.s.r. is a member of initiatives such as the Dutch Climate Coalition and the Net Zero Asset Managers initiative (NZAM), where it works alongside other investors to promote policies and practices that support the transition to a net-zero economy. The scope of the exclusions and impact investing actions is a.s.r.'s own account investments, and investments on behalf of policyholders and third-party clients. Engagement activities primarily focus on investments in corporate bonds and equities. The scope of industry participation and collaboration actions is mainly within the financial sector and at research centres in universities.

Asset Management implements its climate-related actions on an ongoing basis. A number of specific climate-related actions are expected to be completed by the end of 2027. These include the completion of initial phase three engagements of the fossil fuel exit strategy, where Asset Management will engage with at least 15 companies on the demand side for fossil fuels from the manufacturing, mining, and utilities sectors to understand the sector-specific risks and opportunities posed by climate change, and to request the creation of robust transition plans.

Since 2021, Asset Management has been engaging with companies involved in the production of traditional oil and gas to establish whether they are aligned with the Paris Agreement. In line with its fossil fuel exit strategy, Asset Management completed its engagements with these companies before the end of 2024. In 2024, Asset Management also took the decision to exclude traditional oil and gas producers that do not meet its requirements for alignment with the Paris Agreement and started the process to phase out its remaining positions in these companies.

In relation to its key climate mitigation actions, Asset Management reduced its financed GHG emissions in scope of the emission reduction target by 9% in 2024 compared to the base year 2023. With regards to expected GHG reduction emissions in the real economy: Asset Management's financed emissions arise from the real-world activities of the companies and countries in which it invests. Reductions in financed emissions (i.e. GHG emissions reductions) depend primarily on external factors, such as government policy, technological advancements, and shifts in consumer behaviour. Asset Management contributes to the net-zero transition through active ownership (e.g., engaging with investee companies to create and implement robust transition plans) and impact investing (e.g. funding renewable energy projects and low-carbon technologies). These actions aim to stimulate real-world decarbonisation and support alignment with net-zero. However, the reduction of emissions in the real economy remains the primary driver of expected GHG emissions reductions and achievement of the carbon reduction target.

Key actions of Real Estate 1.11.22.12.2

Real Estate manages its climate-related impact, risks and opportunities by taking the following key actions presented by outcome and in case of a climate mitigation action the decarbonisation lever.

Real Estate property

• Support climate change mitigation in existing and new real estate assets: Real Estate aims to reduce the energy usage of individual assets by executing asset-level reduction plans. A Paris Proof roadmap using the Carbon Risk Real Estate Monitor (CRREM) pathways is in place for each Real Estate fund and the own account assets. The Paris Proof roadmap is based on the current energy intensity and reduction measures at the level of individual assets to reach net-zero in 2045. In addition, Real Estate focuses on acquiring or developing new properties with lower carbon footprints (decarbonisation lever: less energy usage of property reduces emissions) and office buildings located near public transport hubs (decarbonisation lever: impact investing in locations near public transport hubs reduces car trips and promotes sustainable travel),

• Advance climate change adaptation in existing and new real estate assets: Real Estate strives to build a portfolio that is progressively adapted to long-term climate-related hazards by both understanding and anticipating the long-term effects of climate change. For the assets that are exposed to high long-term physical climate risks, an assessment of adaptation solutions that could reduce the impact of the identified physical climate risks is carried out and the results are used to draw up a high-level adaptation plan, which aims to ensure these assets are resilient to climate.

• Increase energy efficiency: Real Estate engages with tenants to agree on making the leased asset more sustainable. Green leases are added to new and existing contracts, whereby tenant and landlord enter into a partnership for joint energy-reducing efforts, with the aim of bringing and keeping the energy-intensity in line with the CRREM pathway and to reach net-zero in 2045. 

• Support renewable energy deployment: Real Estate aims to implement renewable energy solutions within its Real Estate portfolio. PV panels are the most suitable solution for buildings and are installed when feasible. Real Estate also procures 100% renewable energy from the Netherlands for the areas controlled by the landlord and encourages tenants to do so as well.

Farmland and Rural estates

• Support climate change mitigation through green leases and reduction measures by farmers: Real Estate promotes sustainable agricultural practices through green leases. By 2025, a.s.r. aims for 100% of new and at least 30% of existing ground lease agreements to be green leases. These leases incentivise farmers with annual reductions in lease payments (10% over the first three years and 5% thereafter) for meeting sustainable farming criteria. Real Estate also engages with farmers. The objective is to facilitate at least 15 farmers with emission reduction plans by 2025. This initiative involves collaborating with farmers to develop tailor-made solutions that reduce emissions and improve soil health. In 2024, The Fund began projects with 10 farmers, guided by advisors, stewards, and science experts, to create customized emission reduction plans. The Fund covers the cost of creating these plans and works jointly with farmers to seek funding for implementing necessary measures. Furthermore, a.s.r. engages farmers through events, client panels, and newsletters to share insights and successful strategies. a.s.r. aims to set a knowledge-sharing hub for tenants by 2027 (decarbonisation lever: price incentives and engagement leads to farmers developing and implementing transition plans).

• Advance climate change adaptation in existing and new farmland assets: Real Estate strives to build a portfolio that is progressively adapted to long-term climate-related hazards by both understanding and anticipating the long-term effects of climate change. Real Estate conducted a comprehensive climate risk assessment for all plots in its portfolio. This assessment helped to gain insight into the climate effects relevant to various landscape types and identify opportunities to enhance climate resilience. Based on the assessment, Real Estate identified vulnerabilities to climate-related impacts, including thirteen climate risks divided into three main categories: water, drought and salinisation. And Real Estate identified adaptation solutions to mitigate the identified climate risks and aims to assess and integrate these climate adaptation solutions into its acquisition, investment and disposition strategies. In addition, Real Estate aims for at least 2% of the farmland portfolio's hectares to be dedicated to climate-positive crops, which include leguminous and biobased building varieties, in 2025. The cultivation of these crops is considered an adaptation solution and offers a sustainable alternative to traditional agricultural practices.

Renewable energy

• Support the energy transition: Real Estate does (impact) investments in renewable energy deployments such as wind and solar farms.

The scope of first four key actions is the a.s.r. urban real estate property under management of a.s.r. Real Estate. The scope of the second two key actions relates to Real Estate's farmland property and rural estate portfolio. The last key action relates to Real Estate's renewable energy property. The time horizon to complete these actions is, unless described otherwise in the above, 2045.

Real Estate's key climate mitigation actions have already delivered concrete results. The investments in wind and solar farms currently include four wind farms and one solar farm. Together they generate an amount of power comparable to the annual consumption of 231,000 households. The real estate funds' emissions however remained the same (0% emission reduction) in 2024 compared to the base year 2023. In the coming years, the funds will continue to execute asset-level reduction strategies and further refine the Paris Proof roadmap with annual consumption data, lessons learned and evolving insights on an annual basis, which are expected to lead to alignment with the Paris Agreement targets in 2045 at the latest.

Key actions of Mortgages 1.11.22.12.22.4

Mortgages has adopted a set of key actions towards customers and advisors to stimulate them to make the transition to a net-zero home. The key actions presented by outcome and in case of a climate mitigation action the decarbonisation lever are:

• Reduce GHG emissions and manage risks by offering specific products for making homes more sustainable, such as the Verduurzamingshypotheek which provides the opportunity to borrow up to 65,000 euros which can only be used to finance sustainable home improvements at a reduced tariff compared to the standard mortgage product (decarbonisation lever: financial (impact) incentive leads to making homes more sustainable and reducing emissions).

• Reduce GHG emissions and manage risks by making it more accessible for customers to borrow up to € 10,000 additionally for making their houses more sustainable through an opt-in on the mortgage offer (decarbonisation lever: accessibility of additional (impact) finance incentivises making homes more sustainable and reducing emissions).

• Support the energy transition by setting up the sustainable living platform: on this platform, a.s.r. mortgages helps consumers by sharing other people's experiences and practical advice about sustainable living, such as insulating homes, saving on energy use and how to make a house more climate-resistant.

• Support the energy transition by setting up a partner network for helping customers to realise sustainable home improvements.

• Advance climate change adaptative thinking by increasing knowledge and awareness on climate adaptiveness of residential homes through engagement in partnerships.

The scope of these key actions is emissions of private individuals who take out a mortgage for their homes. Time horizons for the actions to complete is 2050 when a Paris Agreement aligned mortgages portfolio is expected to be achieved.

Mortgages has already delivered concrete results in relation to its key climate mitigation actions: in 2024, Mortgages reduced its GHG emissions by 5% compared to the base year 2023 (please note that this outcome is based on the old CBS lookup tables from PCAF as the new CBS lookup tables were not yet available at the moment of calculating the figures). In the coming years, Mortgages will continue to stimulate and help homeowners to make their homes more sustainable. The organisation has made a reduction pathway but is still dependant on the actions homeowners, advisors, funders, the government and other parties in the mortgage chain to achieve its goals. Mortgages will continue to stimulate and encourage them.

Key actions of P&C 1.11.21.32.12.22.32.4

P&C has initiated various actions to manage its climate-related impacts, risks and opportunities. Key actions of P&C by outcome and in case of a climate mitigation action the decarbonisation lever type are:

• Reduce carbon emissions and manage risks: in the underwriting process, P&C excludes producers of thermal coal and unconventional oil and gas, requires other producers in the fossil fuel sector to commit to the Paris Agreement and to have transition plans, and performs ESG risk assessments on other parties with substantial volume in the fossil fuel industry or in sensitive sectors (decarbonisation lever: underwriting criteria incentivise companies to develop and implement energy transition plans).

• Support the energy transition by making renewable energy initiatives insurable through the sustainability desk.

• Support climate adaptation and energy transition by sustainable product development which incentivises prevention measures and renewable energy alternatives.

• Support the energy transition by setting up the sustainable living platform: P&C helps consumers by sharing other people's experiences and practical advice about sustainable living, such as insulating homes and saving on energy use and how to make a house more climate-adapted, on this platform.

• Support the energy transition by setting up the sustainable mobility webpage: P&C provides advice on eco-friendly transport with lower GHG emissions on this webpage.

• Reduce carbon emissions by sending out information in customer communications: in welcome messages to new customers, a.s.r. provides information on the importance of emissions reduction (decarbonisation lever: engagement creates knowledge and awareness amongst customers about the possibilities to reduce emissions).

• Support energy efficiency by setting up the sustainable business webpage: P&C helps entrepreneurs by sharing other entrepreneurs' experiences and practical advice about sustainable entrepreneurship, such as how to save energy at the workplace on this webpage.

• Reduce GHG emissions by setting up a collaboration with Klimaatroute: P&C works with this organisation, which carries out energy scans on business customers at reduced rates and prepares a report on possible actions the customer can take to reduce GHG emissions within the company. If the business customers so wish, Klimaatroute can also help obtain quotes, subsidies and permits (decarbonisation lever: the information and support by Klimaatroute leads to more knowledge and removes barriers amongst business customers in relation to reducing emissions).

• Reduce GHG emissions by referring customers with damaged items which can be repaired by repairers that meet the stringent requirements of sustainable GroenGedaan! and Erkend Duurzaam certifications (decarbonisation lever: extending lifetime instead of replacing (decarbonisation lever: accessibility of additional finance incentivises making homes more sustainable and reducing emissions) items reduces emissions).

The scope of the actions regarding underwriting criteria and the sustainability desk are commercial customers wishing to purchase object related insurance. The scope of P&C's key actions related to the platform and webpages is the general public, the welcome letter action applies to P&C customers in general, where the collaboration with Klimaatroute focuses on commercial P&C customers specifically. The scope of the actions regarding referring to repairers is claims adjustment of damaged items insured on car and property insurance.

The execution of sustainable underwriting criteria and the sustainability desk will probably need to continue until 2050, new content is placed on the platforms and in the welcome messages regularly throughout the year, with time horizons of 2050 as well. The collaboration with Klimaatroute is set up until 2030. Product development and referral to certified repairers is ongoing.

With regards to its climate mitigation actions, P&C has reduced its insurance associated emissions in scope of its emission reduction target by 3% in 2024 compared to the base year 2022. With regards to emission reductions in the real economy: P&C expects that its product development, engagement and claims adjustment actions have supported the energy transition, energy efficiency and carbon reduction of consumers and entrepreneurs. However, it is unclear by how much emissions in the real economy have been reduced specifically through these actions. In the coming years, P&C will continue these actions and expects that these will keep encouraging consumers and entrepreneurs to reduce their GHG emissions.

Key actions of Health 2.2

Joint actions that follow from the Green Deal Duurzame Zorg (GDDZ) 3.0 to mitigate negative impacts on climate change - presented by outcome and in case of a climate mitigation action the decarbonisation lever, are:

• Reduce GHG emissions by stimulating healthcare providers via healthcare purchasing policy to reduce their GHG emissions in a uniform manner (decarbonisation lever: emission reduction incentives in purchasing policy lead to less emissions).

• Reduce GHG emissions by asking healthcare providers with more than 100 employees for a mobility plan to reduce GHG emissions and requesting health insurers to include GHG emissions when contracting patient transport (decarbonisation lever: requests to make plans for no/low carbon transportation leads to less emissions).

• Reduce GHG emissions by designing a framework for action for future-proof healthcare real estate (decarbonisation lever: designing actions for future proof healthcare buildings leads to less emissions).

• Reduce GHG emissions by stimulating and supporting the preparation and implementation of GHG emission reduction roadmaps by larger healthcare providers (decarbonisation lever: engagement and support incentivises healthcare providers to develop and implement GHG emission reduction roadmaps lead to less emissions).

• Support the energy transition by providing sustainability training for healthcare purchasers, with the aim of having purchasers discuss sustainability with healthcare providers.

In scope are contracted healthcare providers. Time horizon for the completion of the GDDZ 3.0 is 2026 when a revision will take place. There are no data available yet on the achieved and expected GHG emissions related to the climate mitigation actions.

Key actions of Funeral 2.2

Funeral has set various actions to manage its impact. The key actions presented by outcome and in case of a climate mitigation action, the decarbonisation lever, are:

• Reduce GHG emissions by sustainable product development and by contributing positively to making its network of funeral undertakers more sustainable (decarbonisation lever: product development and engagement incentivises reducing emissions).

• Support energy transition by engaging with its customers to make sustainable choices.

• Reduce GHG emissions by developing an industry-wide calculation methodology and definition with sector colleagues to provide insight into GHG emissions of funeral insurance (decarbonisation lever: knowledge of GHG emissions drives emission reduction).

Scope of these actions is Funeral's network and customers with a.s.r. funeral insurance policies. Time horizons for completion of Funeral's key actions is 2050 at the latest.

Due to the lack of methodology and definition to measure GHG emissions of funeral insurance, there are no data available yet on the achieved GHG emission reductions related to the climate mitigation actions. The development of a methodology and a definition is expected to start in 2025 so there is no insight yet, on the expected GHG emission reductions either.

Resources in relation to climate change policies

In some cases, the implementation of an action plan may depend on the availability and allocation of resources, which require significant operational expenditures (OpEx) and/or capital expenditures (CapEx). These are stated in the table below and are primarily related to the implementation of the various key actions of Facilities, Mortgages and Asset Management.

Operational expenditures

The implementation of the above key actions has led to significant additional operational expenditures for various entities and product lines this year and in the coming years, as is set out in the above table.

For Facilities, this mainly concerns supplier costs related to reducing energy usage, closing some office locations (The Hague in 2025 and Leeuwarden around 2027), promoting eco-friendly transportation options for employees and hybrid working. For Mortgages, this concerns several ESG projects aimed at customers and advisors to encourage them to transition to a net-zero home, including energy-efficient mortgages. The above table also includes the operational expenses related to the implementation of the action plans at Asset Management to manage and mitigate the material impacts, risks, and opportunities related to climate change.

For Real Estate, operational expenditures are made by the Real Estate funds, not by a.s.r. as an investor or by Real Estate as a fund manager. Therefore, these are not included in the above table. The funds focus on reducing energy consumption through asset-level execution plans and increasing on-site renewable energy. As a fund manager, Real Estate encourages, advises, and supports the funds in achieving the Paris Agreement goals.

Operational expenses for the other entities and product lines do not exceed the materiality threshold per action plan of € 1 million yet and are therefore not considered significant expenditures.

The aforementioned operational expenditures are classified in the financial statements as insurance service operating expenses and are part of the insurance service result.

Capital expenditures

The expenses related to the implementation of the various action plans are normally not capitalised on the balance sheet but are directly written off as an expense in the results. An exception to this is the investment of Facilities to make the lighting in the a.s.r. headquarters more sustainable. These are reflected in the table above as current capital expenditures allocated to action plan.

Not all entities and product lines were able to determine their exact operational costs and capital expenses in relation to their action plans yet. Also, action planning is a continuous process, so additional CapEx and OpEx may be necessary to carry out further action plans.

See section 6.5.3.1 for CSRD reporting policies.

6.2.1.4Targets and metrics

Targets

Targets related to climate change mitigation and adaptation 2.2

Facilities, Asset Management, Real Estate, Mortgages and P&C have set targets related to climate change mitigation and adaptation to track the effectiveness of their actions to address their climate-related impacts, risks and opportunities and to meet their policy objectives. Health supports the joint target resulting from the GDDZ 3.0.

Procurement, IT, distribution and services entities and Funeral have not yet determined targets, as they are still in the process of developing policies. Targets will be set once policies are finalised. These entities and product lines are currently not tracking the effectiveness of any policies or actions in relation to material sustainability-related impacts, risks and opportunities, as there are no policies or actions yet, except for the actions of Corins to reduce carbon emissions of which effectiveness is also not tracked yet.

Impact investment target - investments (Asset Management, Real Estate and Mortgages) 2.12.4

A key focus of the Policy on Responsible Investments of Asset Management is supporting the energy transition by creating a positive impact through investments. One of the strategic themes of the ESG Policy of Real Estate is to reduce GHG emissions through impact investments in renewable energy. The Mortgages Transition Plan sets out a framework to reduce negative impact on climate change by financial (impact) incentives. Setting an impact investment target for investments helps to track the effectiveness and progress of the impact investing actions taken to achieve these policy objectives.

Although the impact investment target mainly relates to impact investing actions taken to support the energy transition, impact investments can also be made with the intention to generate social and biodiversity impact.

The target level to be achieved is 10% of the assets under management, in 2027. In scope are a.s.r. own account investments and internally managed affiliated assets. Out of scope are externally managed affiliated assets and internally and externally managed investments on behalf of third-party clients.

The period to which the target applies is three years (until 2027). Regarding the methodologies used and significant assumptions made, impact investing is defined as an investment approach that seeks to generate positive, measurable social and environmental impact alongside financial returns, in line with the Global Impact Investing Network (GIIN). The impact investing selection criteria are detailed in the various policies. The impact investment target is not based on conclusive scientific evidence. No stakeholders were involved in the target setting.

No changes have been made yet to the current target and corresponding metrics. The current impact investment target for a.s.r., including Aegon NL, was defined after having set the previous impact investment target to a nominal amount of € 4.5 billion for a.s.r. standalone in 2024. In 2024, impact investments amounted to 8.7% of the portfolio in scope, which is in line with what has been initially planned. In regard to how the progress is monitored and reviewed and to the metrics used, the product lines calculate the total euro amount related to impact investments as a percentage of the total euro amount related to assets under management in scope in the reporting year at year-end.

Emission reduction targets

Emission reduction targets of the product lines and entities that have set these to support their policies and to address their climate-related impacts, risks and opportunities, have been consolidated to group level emission reduction targets in the categories own operations, financed emissions and insurance-associated emissions. Due to differences in scope between E1-4 targets and E1-6 metrics, the 2024 emissions as disclosed for the E1-4 targets below differ from the emissions as disclosed in E1-6. See below and section 6.5.3.2 for CSRD reporting policies for further information.

• ¹ % reduction compared to base year.
• ² Market-based approach included in scope 2.

Emission reduction target - own operations (Facilities) 2.2

The general objective of the Environmental Policy Statement of Facilities is for a.s.r. to maintain its own environmental performance at a socially responsible level. Setting an emission reduction target for own operations GHG emissions helps to track the effectiveness and progress of the climate mitigation actions taken to achieve this policy objective.

The target level to be achieved is a 42% reduction compared to the own operations GHG emissions in the base year. In scope are scope 1 and 2 GHG emissions of a.s.r.'s own buildings in Utrecht, Rotterdam, Enschede, Heerlen, Den Haag and Leeuwarden. Out of scope are the entities Corins, D&S Holding, Knab, Robidus and TKP and scope 3 emissions related to own operations such as GHG emissions of employee commuting.

The base year is 2023 and the baseline value is 2,246 tCO₂e. The base year was chosen in line with SBTi's best practice to choose the most recent reporting year for which data are available as a base year. The baseline value in 2023 is considered representative because it covers a.s.r.'s most relevant own operations GHG emissions and minimised external factors such as COVID-19. The period to which the target applies is 2030.

Regarding methodologies used and significant assumptions made, the SBTi methodology has been followed to set the emission reduction target for a.s.r.'s own operations GHG emissions. As the SBTi methodology has been followed to set the target, the emission reduction target is considered to be based on scientific evidence, considered to be science-based and compatible with limiting global warming to 1.5˚C but this has not been validated by SBTi yet. Representatives of the different locations and the distribution and services entities have been involved when setting the targets.

No changes have been made yet to the current emission reduction target and corresponding metrics. The current emission reduction target was set after the previous emission reduction target for own operation GHG emissions was reached in 2023. The scope of the current target is different from the previous target in that the current target covers scope 1 and 2 GHG emissions of a.s.r.'s own buildings in Utrecht, Rotterdam, Enschede, Heerlen, Den Haag and Leeuwarden where the previous target covered scope 1, 2 and 3 GHG emissions of a.s.r.'s own building in Utrecht. Metrics remained the same.

In 2024, a reduction of 37% compared to the base year 2023 was achieved, which is ahead of the projected reduction path. This considerable progress in the first year of this target is a result of mostly one-off interventions such as the electrification of the vehicle fleet, the procurement of green energy contracts and additional Guarantees of Origin having an immediate effect and resulting in a relatively high decrease of scope 2 emissions using a market-based approach, in 2024. Facilities monitors and reviews the progress by comparing the own operations GHG emissions in the reporting year (measured in tCO₂) to those in the base year, expressed as a percentage difference, at year-end.

The emission reduction target for own operations GHG emissions is disclosed as a percentage of the own operations GHG emissions of the base year. This target relates to scope 1 and 2 own operations GHG emissions whereby it has not been determined which share of the target is related to scope 1 and which to scope 2 own operations GHG emissions. Section 6.5.3.2 describes which GHGs are covered by the emission reduction target.

Emission reduction target - financed emissions (Asset management, Real Estate, Mortgages) 2.2

A key focus of the Policy on Responsible Investments of Asset Management is on mitigating climate-related risks and supporting the transition to a low-carbon economy. One of the strategic themes of the ESG Policy of Real Estate is to reduce energy intensity and GHG emissions. The Mortgages Transition Plan sets out a framework to reduce negative impact on climate change and mitigate climate-related physical and transition risks in the portfolio. Setting an emission reduction target for financed GHG emissions helps to track the effectiveness and progress of the climate mitigation actions taken to achieve these policy objectives.

The target level to be achieved is a 25% reduction compared to financed GHG emissions in the base year. The scope of the emission reduction target for financed GHG emissions is scope 3 Category 15 (financed) GHG emissions of Asset Management, Real Estate and Mortgages. For Asset Management, this covers scope 1 and 2 emissions of investees (companies and sovereign states) and concerns internally managed a.s.r. own account investments in equities, corporate bonds, and government bonds. For Real Estate, the scope includes scope 1, 2 and 3 (energy use of tenant) emissions of real estate assets and concerns assets 100% owned by a.s.r., rural estates and the funds managed by Real Estate. For Mortgages, this covers scope 1 and 2 emissions of property for which mortgages are serviced by a.s.r. and concerns a.s.r. Hypotheken label and Aegon Hypotheken label including Knab mortgages managed on behalf of BAWAG after Knab was sold to BAWAG.

The base year is 2023 and the baseline value is 41 tCO₂e per € 1 million invested. The base year was set in line with Science-Based Targets initiative's best practice to choose the most recent reporting year for which data are available as a base year. In addition, during 2023 the acquisition of Aegon NL was completed and therefore it covers all relevant activities of the new combined organisation. The baseline value in 2023 is considered representative because it covers the most relevant financed emissions and minimises external factors such as COVID-19. The financed emission reduction target is set to cover the period from 2023 to 2030.

Regarding methodologies used and significant assumptions made, it was not possible to use one single methodology to set a target for Asset Management, as the target relates to both GHG emissions from companies as well as sovereign states. To define its emission reduction target, Asset Management made use of information following from results achieved in the past, benchmark requirements and national and international climate objectives and plans. Real Estate and Mortgages made use of the Carbon Risk Real Estate Monitor (CRREM), which provides pathways in line with the Paris Agreement, to define their targets. The current emission reduction target for financed emissions is therefore not yet entirely based on conclusive scientific evidence, is not entirely science-based nor compatible with limiting global warming to 1.5˚C. a.s.r. has committed to submit a near-term science-based target for financed emissions to SBTi for validation. Stakeholders may be involved in this process.

No changes have been made yet to the current target and corresponding metrics. The current emission reduction target for financed emissions for a.s.r., including Aegon NL, was set after reaching the previous emission reduction target for financed emissions for a.s.r. standalone in 2023. Compared to the Non-Financial Target (NFT) figures as communicated in the 2023 Annual Report, several changes have been made to the metrics. First, the source of the current Asset Management carbon footprint calculation of equity and corporate bonds has changed from Moody's ESG to MSCI. Second, the data source for government bonds has changed from Eurostat to the PCAF database. In addition, several methodological changes have been made to consider the most recent PCAF methodologies. Finally, the composition of the portfolio has changed due to the Aegon NL integration.

In 2024, a reduction of 5% compared to the base year 2023 was achieved, which is in line with the initial planning. In regard to how the progress is monitored and reviewed and to metrics used; the product lines compare the financed emissions in the reporting year (measured in tCO₂ / € 1 mln) to those in the base year, expressed as a percentage difference, at year-end.

The current emission reduction target for financed emissions is disclosed as a percentage of the base year GHG emissions. This target relates to scope 3 Category 15 (financed) GHG emissions.

Emission reduction target - insurance-associated emissions (P&C) 2.2

An objective of a.s.r.’s Policy on Sustainable Insurance is to reduce negative impact on climate change, manage climate-related physical and transition risks and seize climate-related opportunities. Setting an emission reduction target for insurance associated emissions helps to track the effectiveness and progress of the climate mitigation actions taken to achieve these policy objectives.

The target level to be achieved is a 26% reduction in tCO₂e compared to the base year. The scope of the emission reduction target is scope 3 category 15 (insurance-associated) emissions of P&C. In scope are the commercial lines (except Construction All Risk insurance) and personal motor lines (specifically the personal car insurance portfolio). Out of scope is any other P&C insurance as no sound methodologies have yet been developed for other insurance lines of business.

The base year is 2022 and the baseline value is 138,739 tCO₂e. This is a recalculated baseline value following changes to the methodologies used and the growth of a.s.r.'s portfolio as a result of the acquisition of the Aegon NL P&C insurance portfolio. Considering the baseline recalculation standard as outlined in the SBTi Corporate Net Zero criteria, the baseline has been recalculated following changes to the methodologies used and the growth of a.s.r.'s portfolio as a result of the acquisition of the Aegon NL P&C insurance portfolio.

The base year was chosen in line with the NZIA target setting guidance, which recommends not to use a base year earlier than 2019. 2019 was not considered a representative year, due to a switch to a new administrative system which did not allow retrieval of sufficient data for 2019. 2020 and 2021 were not considered representative years either when COVID-19 had a considerable influence on transportation by private passenger cars in the Netherlands leading to unusually low GHG emissions. The baseline value in 2022 is considered representative because it encompasses the most relevant insurance-associated emissions for which calculation methodologies are available and minimises the influence of external factors such as COVID-19. The period to which the target applies is 2030.

Regarding the methodologies used and assumptions made, P&C used the overarching emission reduction approach of the NZIA Target-Setting guidance to set its emission reduction target. The Target-Setting guidance works with IPCC pathway IPCC’s AR6 WGIII C1 5th and 95th percentile interval and a 1.5˚C aligned reference target of 26% for base year 2022. The target is therefore considered to be based on scientific evidence, considered to be science-based and compatible with limiting global warming to 1.5˚C but this has not been externally validated yet. No stakeholders have been involved when the target was set.

No changes have been made yet to the emission reduction target. However, the metrics used for calculating the insurance-associated emissions of the personal car insurance portfolio, have changed. P&C now uses average kilometres driven per year, derived from the CBS database, instead of estimated annual mileage supplied by the insured. And for the delegated authority personal car insurance portfolio, insurance-associated emissions are now calculated based on data supplied by the delegated authorities. Additionally, the metrics used for calculating the insurance-associated emissions of the commercial lines have changed as well: the data source for total sector emissions per year and total sector revenue per year has been changed from PCAF to CBS.

In 2024, a reduction of 3% compared to the base year 2022 was achieved. This seemingly limited emission reduction is primarily due to the absolute nature of the emission reduction target and the data quality level used for calculating commercial line emissions. The autonomous growth of the commercial portfolio and inflation-related premium adjustments significantly influence the outcome, making it challenging to determine whether the emission reduction progress is in line with what has been initially planned. To address this, P&C plans to improve data quality and expects to set a relative emission reduction target in due course. In regard to how progress is monitored and reviewed and to metrics used, P&C compares the insurance-associated emissions of the reporting year (measured in tCO₂e) to those of the base year, expressed as a percentage difference, at year-end.

The emission reduction target for insurance-associated GHG emissions of P&C is disclosed as a percentage of the base year insurance-associated GHG emissions. This target relates to scope 3 GHG insurance-associated emissions of P&C.

Emission reduction target - insurance-associated emissions (Healthcare sector) 2.2

The procurement policy of Health has incorporated the joint ambitions of the GDDZ 3.0, which aims to limit the negative impact of the healthcare sector on climate change. Supporting the joint emission reduction target for the Healthcare sector helps to track the effectiveness and progress of the climate mitigation actions taken to achieve this policy objective.

The target level to be achieved by the healthcare sector in accordance with the GDDZ 3.0 is -55% tCO₂e compared to the base year. In scope are the scope 1 and 2 emissions by healthcare providers. Thus, this emission reduction is not the target of Health, but of the healthcare sector, supported by Health via its procurement policy. Out of scope of the procurement policy of Health is care related to the Long-Term Care Act (Wet Langdurige Zorg - Wlz) as a.s.r. only has an administrative role for long-term care and does not procure long-term care.

Hospitals have been allowed to set their own base year, resulting in no single mutual base year being defined across the sector. A baseline value has been calculated based on these different base years, but it does not fully align with the scope of the target and is therefore also not usable. The period to which the target applies is 2030.

As to methodologies used and significant assumptions made: the joint emission reduction target in the GDDZ 3.0 is in line with the Dutch Climate Action Plan. The Dutch Climate Action Plan is aligned with the EU green deal which aims at a 55% emission reduction in 2030 to reach the Paris Agreement to limit global warming to 1.5˚C. The joint target is therefore considered to be based on scientific evidence, considered to be science-based and compatible with limiting global warming to 1.5˚C but this has not been externally validated yet. The GDDZ 3.0 was jointly developed and signed by all stakeholders, the branch organisations in healthcare, and the individual health insurers.

No changes have been made yet to the current joint emission reduction target and metrics. The joint emission reduction target follows from the Green Deal Sustainable Care and includes scope 1 and 2 emissions of healthcare providers. The metric, which was developed by health insurers last year, includes scope 1 and 2 as well as scope 3 emissions of healthcare providers. Due to this difference in scope and absence of a single mutual base year and baseline value it is not possible to use the metric to monitor and review the target progress. Therefore, the performance against the target cannot be disclosed.

The joint emission reduction target is disclosed as a percentage of the emissions of the base year and relates to scope 1 and 2 emissions of healthcare providers. As explained in the above, the base year and baseline value cannot be determined yet, therefore a.s.r. can not yet claim whether they are considered representative or not.

Information that applies to all the entities and product lines that have set emission reduction targets

a.s.r. strives for consistency in target-setting by setting the emission reduction targets for own operations, financed and insurance associated emissions within the GHG inventory boundaries of the PCAF standards. The GHG emission reduction targets are all gross targets not including GHG removals, carbon credits or avoided emissions.

Targets are based on currently available information, estimates and assumptions, as described in this report. Economic, political or regulatory developments may have an impact on the feasibility of the targets. a.s.r. may adopt new technologies if relevant and feasible.

The estimated contribution of the decarbonisation levers and their overall contribution to achieving the GHG emission reduction targets is described in section 6.2.1.3 and in a.s.r.'s Climate Transition Plan where figures combining targets and decarbonisation levers including their (sometimes quantitative but mostly qualitative) contribution to achieve the targets, are shown.

Metrics

Gross Scopes 1, 2, 3 and total GHG emissions

a.s.r. recognises that the first step in achieving its climate objectives is to understand where the organisation currently stands. To gain insight into its current position, a.s.r. considers various metrics that help evaluate its performance and effectiveness in relation to its material climate-related impacts, risks, and opportunities.

A key metric measured by a.s.r. is its carbon footprint, specifically its gross GHG emissions across the different scopes. a.s.r. has developed reporting manuals to be used by product lines that have identified material climate-related impacts, risks, or opportunities when calculating their GHG emissions. A baseline recalculation policy is currently being developed, including a materiality threshold to ensure consistency, comparability, and relevance of the reported GHG emissions data over time. 

For information on the methodologies, scope and significant assumptions underlying these metrics, see section 6.5.3.2 CSRD reporting policies.

The measurement of the metrics is not validated by any external body other than the assurance provider.

Classification of Investment properties

a.s.r. has decided to continue reporting the GHG emissions of investment properties under its scope 3 GHG emissions by using the GHG operational control approach. a.s.r. considers this method to best represent the relationship between the asset user and the associated GHG emissions and the best approach to come to comparable information. Furthermore, using this classification ensures consistency with a.s.r.’s scope 3 GHG emission reduction target, business model, and financial reporting.

If the ESRS were strictly applied, due to the required application of both the financial control and the operational control approach, GHG emissions of investment properties would need to be disclosed as part of a.s.r.’s scope 1 and 2 emissions, resulting in GHG emissions of 41,028 tCO₂e (location-based approach) or 44,671 tCO₂e (market-based approach) being reclassified from scope 3 category 13, along with additional disclosures being necessary to clarify the inconsistencies. Attributing these GHG emissions to scopes 1 and 2 would imply that a.s.r. has control over these emissions. However, this is not the case for emissions from investment properties. This issue is recognised by the EFRAG, the industry and a.s.r.’s assurance provider. It is currently expected that the required ESRS GHG accounting approach will be re-evaluated by EFRAG in 2025.

Sale of Knab

GHG emissions of Knab are included in the reporting for the period from 1 January 2024 to 31 October 2024 only, due to the sale of Knab on 1 November 2024. Knab's share in a.s.r.'s total GHG emissions is 50,895 tCO₂e (location-based approach) or 50,884 tCO₂e (market-based approach) and mainly relate to financed GHG emissions from Knab’s investments.

GHG emissions related to mortgage loans serviced by a.s.r., and which concern mortgages managed on behalf of Knab (BAWAG) and which are included in the financed GHG emissions of Mortgages, are reported for the complete year of 2024.

a.s.r. measures various carbon footprint metrics to understand its climate impact. The table below provides a breakdown of a.s.r.'s scope 1, 2 and 3 GHG emissions, where scope 3 GHG emissions are further broken down under relevant categories from the Greenhouse Gas (GHG) Protocol.

The following provides an explanation of the figures in the above table:

Scope 1

Scope 1 GHG emissions concern direct emissions from owned or controlled sources, such as a.s.r.'s office locations and a.s.r.'s lease car fleet.

a.s.r.'s headquarters in Utrecht has an energy label of A++ and stopped using gas in 2019. The remaining scope 1 emissions mainly consist of gas usage at other office locations and from the remaining fossil fuel lease cars; these cars are being progressively phased out and replaced with electric vehicles at the end of their lease contracts.

Scope 2

Scope 2 GHG emissions comprise indirect emissions from the generation of purchased electricity by a.s.r.'s own office locations.

Market-based scope 2 GHG emissions are virtually zero, driven by green energy contracts and purchasing Guarantees of Origin. The location-based method reflects the energy mix within the specific area of consumption and does not consider any purchase of renewable energy.

a.s.r. calculates emissions from electricity consumption by following the location-based and market-based approaches of the Greenhouse Gas (GHG) Protocol. The location-based approach uses emission factors specific to the municipalities where each of a.s.r.'s locations is situated. For the market-based approach, a.s.r. uses contractual instruments related to energy sales and purchases. Through various contractual instruments, such as Guarantee of Origin certificates, 100% of a.s.r.'s scope 2 emissions are covered. 71% of the contractual instruments are bundled energy attributes.

Scope 3

Scope 3 GHG emissions concern the indirect emissions that occur in a.s.r.’s value chain, both upstream and downstream. a.s.r. made use of 76% primary data when calculating its scope 3 GHG emissions.

Category 1: Purchased goods and services consist of GHG emissions from upstream suppliers and are largely determined by using the spend-based method. This category also includes emissions from reintegration and prevention-related services on behalf of Income and the in-kind benefits on behalf of Funeral.

Category 13 and 15: Investments – financed emissions represents the majority of a.s.r.'s scope 3 GHG emissions and relate to investment activities performed by Asset Management, Real Estate and Mortgages. These emissions are detailed in table E1-6 Category 15: Investments – Financed emissions (scope 1 and 2) alongside GHG emissions from downstream leased assets (category 13). In line with PCAF, scope 3 emissions, detailed in the latter table E1-6 category 15 - Financed emissions breakdown (scope 3), are not included in the Main table above due to potential issues concerning double counting.

Category 15: Investments – insurance associated emissions consists of scope 3 GHG emissions resulting from the underwriting activities of P&C and Health. These emissions are detailed in table E1-6 category 15 Investments - Insurance-associated emissions (Scope 1, 2 and 3).

The remaining sources of scope 3 GHG emissions are relatively minor and include emissions from waste generated in operations (category 5), business travel (category 6), and employee commuting (category 7).

The following overview provides a breakdown of a.s.r.'s scope 1, 2 and scope 3 Financed and Insurance-associated GHG emissions, highlighting which a.s.r.'s entities and product lines they relate to.

The following tables provide a breakdown of a.s.r.'s scope 3 category 15 GHG emissions and includes information on data coverage (%) and data quality. The coverage (%) indicator shows the proportion of in-scope assets/portfolio’s for which the GHG emissions were measured. The data quality score is based on the PCAF data quality scoring approach and gives an indication of the reliability and accuracy of the reported GHG emission data.

• ¹ PCAF category, ranging from one to five, with one being the highest quality and five being the lowest.
• ² Emission intensity normalised for the sale of Knab.
• ³ For Other investments no value is disclosed as no emissions have been calculated or estimated.

The scope 1 and 2 emissions in the above table represent the direct GHG emissions (scope 1) and the indirect GHG emissions (scope 2) occurring from the generation of purchased electricity by investee companies, countries, investment properties and mortgaged properties. This corresponds to the sum of category 13 and 15 financed emissions in the Main table above.

Emissions across the various asset classes are not entirely comparable as a result of different methodologies and data sources for each asset class.

The emissions intensity (measured in tCO₂e / million euros) is also shown in the table for each asset class. The overall emission intensity figure for a.s.r. (scope 1 and 2 financed emissions) is positively influenced by the large share of financed emissions relating to Mortgages. The CO₂e emissions intensity of Mortgages is relatively low compared to other investments, partly because of a.s.r.’s focus on helping high-emission homes reduce their emissions. Investments in sustainability through mortgages are under pressure in the Dutch market, partly due to changes in government policy such as the reduction of subsidies related to the use of solar panels. The rural portfolio of Real Estate has the highest emission intensity within the asset mix.

Emissions have been calculated for 86% of the total AuM and a.s.r. expects to increase the data coverage ratio in the coming years in accordance with the standards and guidelines that will be established.

The table below shows the reconciliation of the AuM used in the emissions calculations to the Financial statements.

The scope difference for own investments is the balance of two items: Knab assets, which are included in the emission calculations but are no longer on the balance sheet due to the sale, and some mortgage portfolios that are out of scope for emission calculation but are on-balance investments. Investments on behalf of third parties refer to mortgages managed by a.s.r. that are within the scope for emissions calculations but are not on a.s.r.'s balance sheet.

The classification differences mainly involve the categorisation of real estate-related investment funds. In the sustainability statements, these funds are classified as Investment property, while in the financial statements, they are classified as Own investments.

Other differences include, among other things, differing valuation principles.

The table below provides an overview of a.s.r.'s scope 3 greenhouse gas emissions, comprising all indirect emissions in the value chain in which a.s.r. invests, excluding those covered under scope 1 and scope 2.

• ¹ PCAF category, ranging from one to five, with one being the highest quality and five being the lowest.
• ² For Other investments no value is disclosed as no emissions have been calculated or estimated.

There is a risk of double counting the scope 3 financed emissions, as the same indirect emissions can be reported by multiple entities in the value chain. For this reason, these financed emissions are not included in the E1-6 Main table.

The accuracy and completeness of reported figures depend on the availability and quality of data from a.s.r.’s ESG data suppliers. a.s.r. uses data from sources such as MSCI and PCAF for calculations.

The table below presents government bond emissions data, both including and excluding land use, land use change, and forestry (LULUCF) and provides a comprehensive view of the emissions associated with government bonds.

LULUCF data is associated with a number of uncertainties. Therefore, a.s.r. has opted to report government bond emissions excluding the LULUCF related emissions in the corresponding GHG table E1-6 Scope 3 category 15 Investments - Financed Emissions breakdown (Scope 1 and 2).

The emissions in the table below are direct GHG and indirect GHG emissions of insured clients in the basic and supplementary insurance portfolio of Health and of the commercial lines (excluding CAR) and the personal motor lines (specifically the personal car insurance portfolio) of P&C.

• ¹ PCAF category, ranging from one to five, with one being the highest quality and five being the lowest.
• ² Construction all-risk.

For further information on the developments within the P&C portfolio, see table E1-4 'Emission reduction targets related to climate change mitigation and adaptation'.

In Health, the emissions are mainly related to the healthcare usage of a.s.r.'s health insurance policyholders and the products purchased by healthcare providers. The premium volume is more than 90% related to the a.s.r. health basic portfolio and the emission factors are in accordance with the agreed calculation methodology in the Dutch insurance industry.

The insurance-associated emissions of Disability, Pensions and Individual life are not recognised as material. These product lines do not insure material risks associated with physical assets or activities that directly generate emissions other than those arising from their investment portfolio. There is also no suitable measurement methodology available from PCAF or another source at this time which is also relevant for Funeral.

The tables below present a.s.r.'s GHG emission intensity.

The GHG intensity per net revenue is a measure that indicates how efficiently a.s.r. generates revenue in relation to GHG emissions. The lower the GHG intensity per net revenue, the more efficiently revenue is generated with respect to GHG emissions.

Total net revenue is based on the consolidated financial statements (see section 7.2.2) and consists of the sum of the insurance contract revenue, direct investment income, fee income and other income related to the revenue from wind farms and solar parks.

The net revenue used to calculate GHG intensity excludes revenue from product lines and portfolios for which emission data is not available. This primarily relates to assets classes such as derivatives, cash and cash equivalents and collateral within the asset mix of Asset Management. For Funeral, only the in-kind funeral insurances are in scope, and the other products are out of scope. For P&C, only the Personal car insurance portfolio and Commercial lines (except Construction All Risk insurance) are in scope and the other portfolios are out of scope. The out of scope net revenue for the GHG intensity metrics is shown in the table above under the line item Net revenue (other).

GHG removals and storage projects

a.s.r. has not developed any projects that result in GHG removals or storage in its own operations, nor contributed to any in its upstream and downstream value chain.

Although a.s.r. has joined the Net Zero Asset Managers Initiative as well as the Forum for Insurance Transition to net zero and has the ambition to support the transition to a net-zero economy, it has not yet disclosed (long-term) net-zero targets for its own operations or portfolios. Currently, a.s.r. has set interim emission reduction targets for the short and medium term only and a.s.r.'s current focus is on achieving these near-term emission reductions. In the longer term, when net-zero targets have been set, there will likely be some residual emissions that will need to be neutralised. It is therefore possible that some use of carbon removals may be necessary over the longer term. a.s.r. is currently monitoring market developments and options will be investigated to neutralise residual financed emissions, if any, with carbon removals in the future.

Carbon credits

a.s.r. has financed climate change mitigation projects outside its value chain through the purchase of carbon credits.

a.s.r. has cancelled carbon credits to offset market-based scope 1, 2 and 3 emissions from the office location Utrecht, leading to carbon neutrality for the office location Utrecht. This climate neutrality claim is accompanied by the emission reduction target as stated in section 6.2.1.4 and does not impede or diminish a.s.r.'s efforts to achieve its GHG emission reduction targets. For 2025, a.s.r. will cancel carbon credits to offset market-based scope 1 and 2 emissions for all offices managed by Facilities.

The carbon credits are provided by Trees for All. Trees for All only sells carbon credits from projects certified by Plan Vivo against the Plan Vivo Carbon Standard. The Plan Vivo Carbon Standard makes sure these projects meet strict environmental guidelines. Plan Vivo is also recognised by Milieu Centraal, a Dutch organisation supported by the government.

See section 6.5.3.3 CSRD reporting policies for the calculation assumptions, methodologies and frameworks applied.

Internal carbon pricing

a.s.r. does not make use of internal carbon pricing schemes.

• ¹Source: DGBC (2024)