SFDR
The Sustainable Finance Disclosure Regulation (SFDR) aims to increase transparency on how financial market participants integrate sustainability risks and opportunities into their investment decisions. It also introduces disclosure requirements for investment products.
Through our websites and certain product disclosures, our local business units enable customers, investors and other stakeholders to compare different products on their environmental and social characteristics and sustainable investment objectives.
Within NN, we monitor SFDR developments and we will continue to implement the relevant disclosure requirements and provide more transparency in the years to come.
Please refer to the website of our local business units for their SFDR disclosures and for more information on how NN Group's Responsible Investment Framework policy is applied by our local business units.
Integrating sustainability into remuneration
We include sustainability matters in the way we set internal objectives and reward our management and employees.
Principles for remuneration within NN Group are reflected in NN Group’s Remuneration Framework ('Framework'), which generally applies to all majority owned entities within the Group and is approved by the NN Group Supervisory Board. The Framework is aligned with NN Group's business strategy, objectives, values and risk appetite and supports the creation of long-term value for all our stakeholders.
Following the Framework, performance management is based on a number of strategic and financial performance objectives. The financial performance objectives do not exceed 50%. These objectives focus on robust and effective risk management, as well as balanced risk taking. By including all types of risks, including sustainability risks, we prevent remuneration from promoting taking excessive sustainability risks.
The strategic performance objectives for the NN Group Management Board focus among others on balanced risk taking as part of the ‘sustainable control environment’ and a ‘positive contribution to society, inline with’ NN Group’s ambition in this area, as presented at the Investor update event on 17 November 2022. These objectives include customer and employee engagement, percentage of women in senior management positions, reduction of greenhouse gas emissions of the corporate investment portfolio, increased investments in climate solutions, and contribution to communities by supporting financial, physical and/or mental well-being. The strategic performance objectives are cascaded throughout the organisation as relevant and appropriate.
Performance is reviewed via regular check-ins and the annual year-end review by the manager of the employee. For the NN Group Executive Board this is driven by the NN Group Supervisory Board. For more information, refer to the Remuneration report included in the NN Group Annual Report.
