Investments
In recent years, we have taken important steps to ensure our investment portfolio is more sustainable. In line with the IIGCC Investment framework, we have developed asset-class-specific Paris Alignment strategies for sovereign bonds, corporate investments (equity and corporate fixed income) and real estate.
Commitment to net-zero proprietary investments
We aim to transition our proprietary investment portfolio to net-zero greenhouse gas emissions by 2050 at the latest. For the corporate investment portfolio (listed equities and corporate fixed income), we have set reference reduction targets to steer and monitor the effectiveness of our net-zero strategy. We aim to reduce greenhouse gas (GHG) emissions by 25% by 2025, and by 45% by 2030 (relative to 2021 baseline year).
Investing in frontrunners of the transition
To implement our strategy, we use our methodology to categorise companies and other issuers (based on current and forward-looking criteria) based on their alignment or potential alignment with the Paris Agreement. For new investments, we take a best-in-class approach to choose issuers that are better positioned to meet the Paris climate targets. For existing assets, we focus on engagement with companies to drive their transition to a sustainable business model. We believe this offers the best opportunity to make a real impact. If sufficient progress is not made in time, we will divest these assets.
Oil and gas policy
NN Group acknowledges that urgent action is required to reduce dependency on fossil fuels and facilitate the transition to a low-carbon renewable economy. We therefore adopted a comprehensive oil and gas policy for proprietary assets, combining our unconventional and conventional oil and gas policies. This policy applies investment restrictions on, for example, oil sands, Arctic oil and gas, and shale oil and gas. All new investments in the oil and gas supply chain will be directed to best-in-class companies committed to lowering their emission to net-zero by 2050, aligned with a Paris Agreement 1.5°C pathway. Read more in our Oil and Gas policy.
Additional investments in climate solutions
We aim to increase our investments in climate solutions by an additional EUR 6 billion by 2030. Compared with year-end 2021, this will more than double our investments in green bonds, renewable energy projects such as solar or wind farms, and energy efficient real estate investments.
