Difference between revisions of "AEGON N.V."

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     | title =
     | title =
     | label6= Emissions (All Scopes)
     | label6= Emissions (All Scopes)
     | data6 = 18,79 Megatons of CO2 (2020)<ref>https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 421-422</ref>
     | data6 = 19.97 Megatons of CO2 (2020)
     | title =  
     | title =  
    | label7= NCI assessment
    | data7 = Low
     | title =  
     | title =  
     | label7= Net Income
     | label8= Total Revenue
     | data7 = 55 million EUR (2020)
     | data8 = EUR 25.2 billion
     | label8= Key People
    | label9= Stock Exchange
     | data8 = {{plainlist|
    | data9 = New York and Amsterdam
     | label10= Key People
     | data10 = {{plainlist|
* Lard Friese (CEO and Chairman of the Executive and Management Board)
* Lard Friese (CEO and Chairman of the Executive and Management Board)
* Matt Rider (CFO)}}
* Matt Rider (CFO)}}
     | title =
     | title =
     | label9= Subsidiaries
     | label11= Number of Employees
     | data9 = {{plainlist|
    | data11 = 22,272
    | label12= Subsidiaries
     | data12 = {{plainlist|
* Aegon Asset Management  
* Aegon Asset Management  
* Knab
* Knab
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  |below      =  
  |below      =  
}}
}}
'''Aegon N.V.''', stylized as '''Aegon''', is a Dutch company that offers insurances to over 30 million customers worldwide. Aegon is a constituent of the AEX index and listed on the Euronext Amsterdam. The company was formed from the merger between AGO and Ennia in 1983. The company has over 20000 employees and is active in several countries in Europe, Asia and America.<ref>https://www.aegon.com/about/who-we-are/</ref>  
'''Aegon N.V.''', stylized as '''Aegon''', is a Dutch company that offers insurance to over 30 million customers worldwide. Aegon is a constituent of the AEX index and is listed on the Euronext Amsterdam. The company was formed from the merger between AGO and Ennia in 1983. The company has 22,272 employees.<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p24</ref> Aegon is active in several countries in Europe, Asia and America. In America, Aegon is known as Transamerica. <ref>https://www.aegon.com/about/who-we-are/</ref> Aegon's main brands are Aegon and Transamerica, but besides these two the company also has several stand-alone brands including; Knab, TKP, Futureready, and MAG.<ref>https://www.aegon.com/about/who-we-are/our-brand/</ref> Furthermore, Aegon has one global asset manager ''Aegon Asset Management''. Aegon Asset Management is active in the global investment business that manages and advises on assets of 410 billion euros. This money is from the global client base consisting of pension plans, public funds, insurance companies, banks, wealth managers, family offices, and foundations.<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf P3</ref> In 2021, Aegon had a revenue of 25.2 billion euros.<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p94</ref>


== Company Structure ==
== Company Structure ==
Line 68: Line 74:
!Name
!Name
!Function
!Function
!Remuneration x1000 EUR <ref>https://www.aegon.com/contentassets/27d304544de4425fad7e8b8bcfa680c1/aegon-remuneration-report-2020.pdf</ref>
!Remuneration x1000 EUR<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p70</ref>
|-
|-
|Lard Friese  
|Lard Friese  
|Chief Executive Officer
|Chief Executive Officer
|1545 <ref>https://www.beursgenoten.nl/koersen/euronext-aandelen-amsterdam/aegon/profiel</ref>
|2,622
|-
|-
|Matt Rider
|Matt Rider
|Chief Finanacial Officer
|Chief Finanacial Officer
|1255 <ref>https://www.erieri.com/executive/salary/matthew-rider-axdz</ref>
|1,999
|}
|}


=== Management Board or Executive Leadership Team===
=== Management Board ===
{| class="wikitable"
{| class="wikitable"
|+Management Board <ref>https://www.aegon.com/about/governance/management-board/</ref>  
|+Management Board <ref>https://www.aegon.com/about/governance/management-board/</ref>  
Line 86: Line 92:
|-
|-
|Lard Friese
|Lard Friese
|CEO and Chairman of the Executive and Management Board of Aegon N.V.
|CEO and Chairman of the Executive and Management Board
|-
|-
|Matt Rider  
|Matt Rider  
|CFO and member of the Executive and Management Board of Aegon N.V.
|CFO and member of the Executive and Management Board  
|-
|-
|Elisabetta Caldera  
|Elisabetta Caldera  
|Chief Human Resources Officer and member of the Manegement Board of Aegon N.V.
|Chief Human Resources Officer and member of the Management
|-
|-
|Will Fuller
|Will Fuller
|CEO of Aegon Americas and member of the Management Board of Aegon N.V.
|CEO of Aegon Americas and member of the Management Board
|-
|-
|Mike Holliday-Williams  
|Mike Holliday-Williams  
|CEO of Aegon UK and member of the Management Board of Aegon N.V
|CEO of Aegon UK and member of the Management Board
|-
|-
|Allegra van H"ovel-Patrizi
|Allegra van Hövel-Patrizi
|CEO of Aegon the Netherlands and member of the Management Board of Aegon N.V.
|CEO of Aegon the Netherlands and member of the Management Board
|-
|Astrid Jäkel
|Chief Risk Officer and member of the Management Board
|-
|-
|Marco Keim
|Marco Keim
|CEO Aegon International and member of the Management Board of Aegon N.V.
|CEO Aegon International and member of the Management Board
|-  
|-  
|Onno van Klinken
|Onno van Klinken
|General Counsel and member of the Management Board of Aegon N.V.
|General Counsel and member of the Management Board
|-
|-
|Bas NieuweWeme
|Bas NieuweWeme
|Global CEO of Aegon Asset Management and member of the Management Board of Aegon N.V
|Global CEO of Aegon Asset Management and member of the Management Board
|-
|-
|Duncan Russel  
|Duncan Russel  
|Chief Transformation Officer and member of the Management Board of Aegon N.V.
|Chief Transformation Officer and member of the Management Board
|-
|Debbie Waters
|Chief Technology Officer (CTO) and member of the Management Board
|}
|}


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!Name
!Name
!Function
!Function
!Remuneration x1000 EUR<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p60</ref>
|-
|-
|William Connelly
|William Connelly
|Chairman  
|Chairman  
|162
|-
|-
|Mark Ellman
|Mark Ellman
|Member of the Risk Committee  
|Member of the Risk Committee  
|102
|-
|-
|Ben Noteboom
|Ben Noteboom
|Chairman of the Remuneration Committee  
|Chairman of the Remuneration Committee  
|107
|-
|-
|Caroline Ramsay  
|Caroline Ramsay  
|Charimand of the Audit Committee  
|Charimand of the Audit Committee  
|121
|-
|-
|Thomas Wellauer  
|Thomas Wellauer  
|Member of the Audit Committee  
|Member of the Audit Committee  
|111
|-
|-
|Corien Wortmann-Kool  
|Corien Wortmann-Kool  
|Vice Chairman of the Supervisory Board  
|Vice Chairman of the Supervisory Board  
|112
|-  
|-  
|Dona Young  
|Dona Young  
|Chairman of the Risk Committee  
|Chairman of the Risk Committee  
|119
|}
|}


=== Accountant ===
=== Accountant ===
The external accountant of Aegon N.V. is PricewaterhouseCoopers Accountants N.V.<ref>https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 121</ref>
The external accountant of Aegon N.V. is PricewaterhouseCoopers Accountants N.V. or PwC.<ref>https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 121</ref> In the report attached to the Annual Report of 2021, climate change and climate related risks are mentioned.<ref>Aegon. (2022). Aegon Integrated Annual Report 2021, p.  287. Retrieved from <nowiki>https://www.aegon.com/investors/annual-reports/</nowiki></ref> However, PwC concludes in the report that the risk of climate change does not lead to a material risk and thus, the risk of climate change is not a key audit matter.


=== Main Activities ===
=== Main Activities ===
In 1983 Aegon was conducted through a merger between AGO and Ennia. Aegon is active in over 20 countries in America, Europe and Asia. Worldwide they offer insurances to around 30 million customers. They also operate a direct bank under the name Knab. Knab has received some criticism due to having the highest cost for transaction compared to other Dutch banks.<ref>https://www.businessinsider.nl/klant-laat-zich-nog-niet-verleiden-door-nieuwe-bank-knab-408710/</ref> Their headquarter is located in The Hague.
 
Aegon is a company that offers investment, protection, and retirement solutions.<ref>https://www.aegon.com/about/</ref> The company has 31.7 million customers worldwide.<ref>https://www.aegon.com/about/who-we-are/</ref>


=== Government ===
=== Government ===
Aegon is listed on the Euronext Amsterdam and is a constituent of the AEX-index. They have not received a royal status and did not receive NOW support during Corona times.<ref>https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf</ref>  
Aegon is listed on the Euronext Amsterdam and is a constituent of the AEX-index. The company does not have royal status and did not receive NOW support during Corona times.<ref>https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf</ref>  
 
'''Shareholdings'''


==== Shareholdings ====
Aegons shareholdings are:
Aegons shareholdings are:
* N.V. Levensverzekeringsmaatschappij "De Hoop" (33.3%) (Netherlands)
* N.V. Levensverzekeringsmaatschappij "De Hoop" (33.3%) (Netherlands)
Line 161: Line 183:
* Mongeral Aegon (50%) (Brazil)
* Mongeral Aegon (50%) (Brazil)


== Paris Agreement to Today ==
== Paris Agreement until Today ==  
In 2015 Aegon signed the Paris Pledge for Action. They undertook an internal review of their alignment with a (less than) 2 degrees future to understand what actions were required.  
In 2019 Aegon signed the Climate Commitment of the financial sector. The 54 signatories committed to make a substantial contribution to the implementation of the Paris Agreement and the Dutch Climate Agreement. Concretely: they will measure the CO2 content of their relevant loans and investments and report on this from 2020 onwards and they will publish action plans by 2022 at the latest, including reduction targets for 2030 for all their relevant loans and investments.<ref>https://klimaatcommitment.nl/over-het-klimaatcommitment/</ref>
They also joined the Net-Zero Owner Alliance in November 2021, this is a UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050. This specifically for Aegon entails a commitment to transition their EUR 156 billion general account investment portfolio. <ref>https://www.aegon.com/responsible-business/external-commitments/our-commitments/</ref>
 
Criticism on this commitment:
* This commitment is without obligation. There are no requirements set for the action plans to be published in 2022. Only 19% of signatories had an action plan in line with the Paris Climate Agreement by 2020.<ref>https://www.tweedekamer.nl/kamerstukken/detail?id=2021Z23668&did=2021D50219 p. 32</ref> In addition, the commitment does not specify the relevant financing and/or investments on which the institutions must report. In 2020, only 9 out of 54 financial institutions report on all relevant asset classes.<ref>https://www.tweedekamer.nl/kamerstukken/brieven_regering/detail?id=2021Z18874&did=2021D40543 p. 2</ref>
* The pace of implementation of this commitment is too slow. Financial institutions such as ABN AMRO, Aegon, ING and Rabobank already committed themselves to the Spitsbergen ambition in 2018, in which they promised to combat climate change.<ref>https://www.asnbank.nl/web/file?uuid=69aed792-aed6-4add-9241-5ab03621ce0e&owner=6916ad14-918d-4ea8-80ac-f71f0ff1928e&contentid=2088 </ref> In 2020, almost half of the institutions did not yet have a climate plan.


In Aegon's 2021 financial report an update on the company's sustainability actions is given.
* Aegon has joined the Net-Zero Asset Owner Alliance, which is an UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050.
* Aegon Asset Management has signed onto the Net Zero Asset Managers initiative.
* Aegon Asset Management and Aegon UK partnered up with Global Ethical Finance Initiative to introduce the new Aegon Global Sustainable Sovereign Bond Fund at 'COP26'.
* Aegon signed the United Nations Global Compact.
In 2018, environmental organization Greenpeace started a petition to get companies including Aegon to stop investing in tar sand oil companies.<ref>https://www.greenpeace.org/nl/greenpeace/14056/aegon-stapt-uit-smerigste-olieproductie-2/</ref> The extraction of tar sands is disastrous and very destructive to local nature. Hot water has to be used for the extraction and also chemicals are used to make the oil suitable for transport.<ref>https://www.nu.nl/duurzaam/5320943/pensioenbeleggers-investeren-ruim-1-miljard-in-vervuilende-oliewinning.html</ref> One year after this petition, Aegon agreed to stop all investments in tar oil and to sell its investments in tar sands oil pipelines in Canada and the US.<ref>https://www.greenpeace.org/nl/greenpeace/14056/aegon-stapt-uit-smerigste-olieproductie-2/</ref> Aegon has decided to stop investing in oil companies that get 30% and more of their oil production from tar sands
=== Financial Results since 2015 ===
=== Financial Results since 2015 ===
The information that is collected here is focused on the Dutch data provided by Aegon.   
The information that is collected here is focused on the data provided by Aegon.   


{| class="wikitable"
{| class="wikitable"
|+Financial situation<ref>https://www.aegon.com/contentassets/14bdec897d244680b202b22291c751ec/aegon-integrated-annual-report-2019.pdf</ref><ref>https://www.aegon.nl/over-ons/beleid-cijfers/jaarcijfers</ref><ref>https://www.aegon.com/contentassets/5a2428e87caf4185abb1ff55f476f147/aegon-integrated-annual-report-2020.pdf</ref>
|+Financial situation
!Year
!Year
!Revenue
!Revenue
!Profit
!Profit (loss)
!Dividend
!Dividend
|-
|-
|2015
|2015 <ref>https://www.aegon.com/contentassets/01ff7a45578d4e5e8925d6c87b1a0d41/aegon-annual-report-2017.pdf p.147</ref>
|33902 Million EUR  
|33,902 Million EUR  
|-523 Million EUR
|(523) Million EUR
|306 Million EUR
|306 Million EUR
|-
|-
|2016
|2016<ref>https://www.aegon.com/contentassets/01ff7a45578d4e5e8925d6c87b1a0d41/aegon-annual-report-2017.pdf p.147</ref>
|33655 Million EUR  
|33,655 Million EUR  
|586 Million EUR
|586 Million EUR
|294 Million EUR
|294 Million EUR
|-
|-
|2017
|2017<ref>https://www.aegon.com/contentassets/01ff7a45578d4e5e8925d6c87b1a0d41/aegon-annual-report-2017.pdf p.147</ref>
|32973 Million EUR  
|32,973 Million EUR  
|2358 Million EUR
|2,358 Million EUR
|328 Million EUR
|328 Million EUR
|-
|-
|2018
|2018<ref>https://www.aegon.com/contentassets/14bdec897d244680b202b22291c751ec/aegon-integrated-annual-report-2019.pdf</ref>
|28941 Million EUR   
|28,941 Million EUR   
|741 Million EUR
|741 Million EUR
|309 EUR
|309 Million EUR
|-
|-
|2019
|2019 <ref>https://www.aegon.com/contentassets/14bdec897d244680b202b22291c751ec/aegon-integrated-annual-report-2019.pdf</ref>
|28197 Million EUR  
|28,197 Million EUR  
|1525 Million EUR
|1,528 Million EUR
|63 Million EUR
|63 Million EUR
|-
|-
|2020
|2020<ref>https://www.aegon.com/contentassets/5a2428e87caf4185abb1ff55f476f147/aegon-integrated-annual-report-2020.pdf</ref>
|25657 Million EUR  
|25,657 Million EUR  
|55 Million EUR
|55 Million EUR
| Million EUR
|118 Million EUR
|-
|-
|2021
|2021<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf</ref>
|XXX Billion EUR  
|25,209 Million EUR  
|XXX EUR
|1,701 Million EUR
|XXX EUR  
|248 Million EUR  
|}
|}


====Scandals and controversies====
== Current Emissions ==
Aegon has been criticised for investing around 600 Million EUR in polluting tar sands companies. The extraction of tar sands is disastrous and very destructive for local nature. Hot water has to be used for the extraction and also chemicals are used to make the oil suitable for transport.<ref>https://www.nu.nl/duurzaam/5320943/pensioenbeleggers-investeren-ruim-1-miljard-in-vervuilende-oliewinning.html</ref>
 
== Current Policies and Emissions ==
{| class="wikitable"
{| class="wikitable"
|+GHG emissions (metric tons CO2e) <ref>https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 421</ref>
|+GHG emissions <ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p389</ref>
!
!Investment Footprint
!2021
!2020
!2020
!2019
!to 2020
|-
|-
|Scope 1
|'''Corporate Fixed Income + listed Equity'''
|4993
|-
|5189
|Absolute Footprint ([[Definitions|Megatons]] CO2e)
|3,8%
|4.886
|4.878
|-
|Weighted Average Carbon Intensity (metric tons CO2e/EURm revenue)
|490
|470
|-
|-
|Scope 2 (gross/location)
|'''Sovereign Fixed Income'''
|34072
|42449
|19,7%
|-
|-
|Scope 2 (net/market)
|Absolute Footprint (Mt CO2e)
|102
|15.088
|1005
|13.863
|89,9%
|-
|Weighted Average Carbon Intensity (metric tons CO2e/EURm revenue)
|620
|500
|-
|-
|Scope 3 operational
|'''Total Absolute Footprint Currenlty Reported (Mt CO2e)'''
|2139
|19.97
|11637
|18.74
|81,6%
|}
|}


Aegon's total operational (gross/location) GHG emissions have been reduced from 59275 to 41205 metric tons CO2e, this entails a 30,5% change from 2019 to 2020. Their total operational (net/market) GHG emissions have been reduced from 17831 to 7237 metric tons CO2e and this results in a 59,4% change.
== Climate Policy and Plans ==
 
Aegon the Netherlands commits to reduce emissions from their own operations by half in 2030 compared to 2018. It is worth noting that a majority of the emissions of Aegon comes from their investment rather than their own operations.
 
In November 2021, Aegon joined the Net-Zero Asset Owner Alliance, a UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050.<ref>https://www.aegon.com/sustainability/our-approach/climate-change/</ref> Aegon has said that this means that they are committed to transitioning its 156 billion euro general account investment portfolio. In order to reach this goal Aegon aims, by 2025, to reduce the weighted average carbon intensity of their corporate fixed income and listed equity general account assets by 25%. <ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf</ref>


== Climate Policy and Plans ==
There are no short-term targets for the rest of the portfolio. There are no absolute reduction goals for the short-term. On page 370 of the 2021 annual report, 6 targets are stated.<ref>https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p370</ref> 4 of these targets are in relation to the net-zero alliance and therefore do not include short term targets. The other two targets are about [[Definitions|carbon-offset projects]] and responsible investments. The target about carbon-offset projects discusses the fact that Aegon's direct business operations have been carbon-neutral since 2019 (on a
Aegons operations that are located in the Netherlands focus on achieving the target that is set on reducing the CO2 emissions per-employee by at least 50% by 2030 against 2018 levels. Measures include improving the energy efficiency of their buildings, making greater use of technology to reduce business travel, and providing employees with more sustainable commuting options.
market-based measurement). Aegon has managed to do this through renewable sources and carbon offset projects. The one target that is important to be noted is the updated Aegon Responsible Investment policy. This policy shows which companies Aegon will not invest in based on their climate actions. For example, Aegon will no longer invest in companies that derive 25% or more of their revenue from the exploration, mining or refining of thermal coal. Another example of a company Aegon will no longer invest in is a company that produces more than 20 million tons of thermal coal annually and are actively expanding exploration, mining or refining operations. There is, however, no mention of a plan to stop investing in companies that produce zero oil or gas.
To achieve the four UN Principle for Sustainable Insurance (PSI)Aegon annually reports on actions they have taken to implements those princples. These principles are following:
 
* We will embed in our decision-making environmental, social and governance (ESG) issues relevant to the insurance business
A recent update on the Aegon website states that Aegon Netherlands is currently working on a Climate Action Plan that describes in detail how its activities and investments will be aligned with the Paris Agreement. The plan is expected to be ready for publication by mid-2022.<ref>https://nieuws.aegon.nl/aegon-nederland-stelt-heldere-klimaatdoelen/</ref>
* We will work together with our clients and business partners to raise awareness of ESG issues, manage risk and develop solutions
* We will work together with governments, regulators and other key stakeholders to promote widespreas actions across society on ESG issues
* We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles


Furthemore they seek to incorporate climate considerations into management actions across their businesses. Steps to mitigate the environmental impact of their direct operations include minimizing their energy consumption and using renewable energy. They also focus on sustainable investments through Aegon's responsible investment framework.<ref>https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 29</ref>
=== NewClimate Institute (NCI) Report ===


Annually they report on their operational carbon footprint.
== Due Diligence ==


=== Due Diligence ===
=== Due Diligence ===
Aegon has said that they are reducing their investments in companies generating revenue from coal-fired power plants, or coal mining, to support the transition toward a low-carbon economy. They already exclude companies that derive 30% or more of sales from the exploration, mining, and refining of thermal coal.<ref>https://www.reuters.com/article/idUSKBN1ZC0MH</ref>
 
A case study for the Fair Insurance Guide Netherlands named ''Insurance companies’ responses to human rights abuses in the extractive industry'' that was published in 2021, concluded that Aegon could not demonstrate that they are taking sufficient action against long-term human rights violations.<ref>https://paxforpeace.nl/what-we-do/publications/insurance-companies-responses-to-human-rights-abuses-in-the-extractive-industry</ref> The study selected eleven companies that are involved in structural human rights violations and then researched to what extent insurance companies were involved with these companies. Aegon achieved a total score of 4.4 out of 10, and is ranked as fifth among the insurance companies assessed in this study. Within the scope of this research, Aegon had financial links with nine out of eleven selected companies.<ref>https://paxvoorvrede.nl/media/download/2021_06%20Final%20report%20Human%20Rights%20and%20Extractives.pdf p84</ref>
 
===Scandals and controversies===
Research from ''De eerlijke Geldwijzer'' (Fair Finance) showed that Aegon scored very low on both Climate Change (3/10) and Nature (1/10).<ref>https://eerlijkegeldwijzer.nl/verzekeringswijzer/verzekeraars/aegon/</ref> When it comes to climate change it is shown that from Aegon's investment in the energy sector 93% went to fossil fuel whereas only 7% went to renewable energy. <ref>https://eerlijkegeldwijzer.nl/verzekeringswijzer/verzekeraars/aegon/</ref> The score of 1 for nature is mainly based on the fact that Aegon invested 37 million euros into companies in which the risk is high that they are directly or indirectly involved in the deforestation in the Amazon.


== Conclusion ==
== Conclusion ==
Aegon is a Dutch insurance company with a net income of around EUR 55 million. They engaged with 237 companies, these engagements were centered around issues relating to Aegon's thee focus topics: climate change, good health & well-being and biodiversity. Aegon is focusing on sustainable investment and reducing the companies air travel. From their Integrated Annual Report it seems that their Scope 2 (gross/location) contibutes to most of their GHG emissions. Their main focus should therefore lie on reducing emissions associated with the electricity they use. The output of their Scope 1 emissions however appears to be reducing at a much slower decline, 3,8%. In regards to their absolute footprint concerning corporate fixed income and sovereign fixed income the change from 2019 to 2020 is not measured and therefore provide no further information as to how the company is or is not improving.
Aegon is a Dutch company with a revenue of 25.2 billion euros and a great influence by serving 31.7 million customers worldwide. It is therefore important that Aegon takes enough action to meet the targets set by the Paris agreement. Currently, Aegon mainly has long-term net-zero plans and only a relative short-term goal for only a part of its portfolio. It does not report CO2 emissions on all of its portfolio.


==  References ==
==  References ==

Latest revision as of 13:21, 2 August 2022

AEGON N.V.
Bedrijf Logo
Quick Facts
TypePublic
sectorFinancial Services
Headquarters (Benelux Organization)Den Haag, Netherlands
Year of Origin1983
Emissions (All Scopes)19.97 Megatons of CO2 (2020)
NCI assessmentLow
Total RevenueEUR 25.2 billion
Stock ExchangeNew York and Amsterdam
Key People
  • Lard Friese (CEO and Chairman of the Executive and Management Board)
  • Matt Rider (CFO)
Number of Employees22,272
Subsidiaries
  • Aegon Asset Management
  • Knab
  • Aegon Cappital
  • TKP Pensioen
  • Nedasco Verzekeringen
  • Robidus

Aegon N.V., stylized as Aegon, is a Dutch company that offers insurance to over 30 million customers worldwide. Aegon is a constituent of the AEX index and is listed on the Euronext Amsterdam. The company was formed from the merger between AGO and Ennia in 1983. The company has 22,272 employees.[1] Aegon is active in several countries in Europe, Asia and America. In America, Aegon is known as Transamerica. [2] Aegon's main brands are Aegon and Transamerica, but besides these two the company also has several stand-alone brands including; Knab, TKP, Futureready, and MAG.[3] Furthermore, Aegon has one global asset manager Aegon Asset Management. Aegon Asset Management is active in the global investment business that manages and advises on assets of 410 billion euros. This money is from the global client base consisting of pension plans, public funds, insurance companies, banks, wealth managers, family offices, and foundations.[4] In 2021, Aegon had a revenue of 25.2 billion euros.[5]

Company Structure

Board of Directors

Executive Board [6]
Name Function Remuneration x1000 EUR[7]
Lard Friese Chief Executive Officer 2,622
Matt Rider Chief Finanacial Officer 1,999

Management Board

Management Board [8]
Name Function
Lard Friese CEO and Chairman of the Executive and Management Board
Matt Rider CFO and member of the Executive and Management Board
Elisabetta Caldera Chief Human Resources Officer and member of the Management
Will Fuller CEO of Aegon Americas and member of the Management Board
Mike Holliday-Williams CEO of Aegon UK and member of the Management Board
Allegra van Hövel-Patrizi CEO of Aegon the Netherlands and member of the Management Board
Astrid Jäkel Chief Risk Officer and member of the Management Board
Marco Keim CEO Aegon International and member of the Management Board
Onno van Klinken General Counsel and member of the Management Board
Bas NieuweWeme Global CEO of Aegon Asset Management and member of the Management Board
Duncan Russel Chief Transformation Officer and member of the Management Board
Debbie Waters Chief Technology Officer (CTO) and member of the Management Board

Supervisory Board

Supervisory Board [9]
Name Function Remuneration x1000 EUR[10]
William Connelly Chairman 162
Mark Ellman Member of the Risk Committee 102
Ben Noteboom Chairman of the Remuneration Committee 107
Caroline Ramsay Charimand of the Audit Committee 121
Thomas Wellauer Member of the Audit Committee 111
Corien Wortmann-Kool Vice Chairman of the Supervisory Board 112
Dona Young Chairman of the Risk Committee 119

Accountant

The external accountant of Aegon N.V. is PricewaterhouseCoopers Accountants N.V. or PwC.[11] In the report attached to the Annual Report of 2021, climate change and climate related risks are mentioned.[12] However, PwC concludes in the report that the risk of climate change does not lead to a material risk and thus, the risk of climate change is not a key audit matter.

Main Activities

Aegon is a company that offers investment, protection, and retirement solutions.[13] The company has 31.7 million customers worldwide.[14]

Government

Aegon is listed on the Euronext Amsterdam and is a constituent of the AEX-index. The company does not have royal status and did not receive NOW support during Corona times.[15]

Shareholdings

Aegons shareholdings are:

  • N.V. Levensverzekeringsmaatschappij "De Hoop" (33.3%) (Netherlands)
  • Tenet Group Limited (22%) (United Kingdom)
  • Seguros Argos (89%) (Mexico)
  • Aegon Life Insurance Company Ltd[7] (49%) (India)
  • Mongeral Aegon (50%) (Brazil)

Paris Agreement until Today

In 2019 Aegon signed the Climate Commitment of the financial sector. The 54 signatories committed to make a substantial contribution to the implementation of the Paris Agreement and the Dutch Climate Agreement. Concretely: they will measure the CO2 content of their relevant loans and investments and report on this from 2020 onwards and they will publish action plans by 2022 at the latest, including reduction targets for 2030 for all their relevant loans and investments.[16]

Criticism on this commitment:

  • This commitment is without obligation. There are no requirements set for the action plans to be published in 2022. Only 19% of signatories had an action plan in line with the Paris Climate Agreement by 2020.[17] In addition, the commitment does not specify the relevant financing and/or investments on which the institutions must report. In 2020, only 9 out of 54 financial institutions report on all relevant asset classes.[18]
  • The pace of implementation of this commitment is too slow. Financial institutions such as ABN AMRO, Aegon, ING and Rabobank already committed themselves to the Spitsbergen ambition in 2018, in which they promised to combat climate change.[19] In 2020, almost half of the institutions did not yet have a climate plan.

In Aegon's 2021 financial report an update on the company's sustainability actions is given.

  • Aegon has joined the Net-Zero Asset Owner Alliance, which is an UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050.
  • Aegon Asset Management has signed onto the Net Zero Asset Managers initiative.
  • Aegon Asset Management and Aegon UK partnered up with Global Ethical Finance Initiative to introduce the new Aegon Global Sustainable Sovereign Bond Fund at 'COP26'.
  • Aegon signed the United Nations Global Compact.

In 2018, environmental organization Greenpeace started a petition to get companies including Aegon to stop investing in tar sand oil companies.[20] The extraction of tar sands is disastrous and very destructive to local nature. Hot water has to be used for the extraction and also chemicals are used to make the oil suitable for transport.[21] One year after this petition, Aegon agreed to stop all investments in tar oil and to sell its investments in tar sands oil pipelines in Canada and the US.[22] Aegon has decided to stop investing in oil companies that get 30% and more of their oil production from tar sands

Financial Results since 2015

The information that is collected here is focused on the data provided by Aegon.

Financial situation
Year Revenue Profit (loss) Dividend
2015 [23] 33,902 Million EUR (523) Million EUR 306 Million EUR
2016[24] 33,655 Million EUR 586 Million EUR 294 Million EUR
2017[25] 32,973 Million EUR 2,358 Million EUR 328 Million EUR
2018[26] 28,941 Million EUR 741 Million EUR 309 Million EUR
2019 [27] 28,197 Million EUR 1,528 Million EUR 63 Million EUR
2020[28] 25,657 Million EUR 55 Million EUR 118 Million EUR
2021[29] 25,209 Million EUR 1,701 Million EUR 248 Million EUR

Current Emissions

GHG emissions [30]
Investment Footprint 2021 2020
Corporate Fixed Income + listed Equity
Absolute Footprint (Megatons CO2e) 4.886 4.878
Weighted Average Carbon Intensity (metric tons CO2e/EURm revenue) 490 470
Sovereign Fixed Income
Absolute Footprint (Mt CO2e) 15.088 13.863
Weighted Average Carbon Intensity (metric tons CO2e/EURm revenue) 620 500
Total Absolute Footprint Currenlty Reported (Mt CO2e) 19.97 18.74

Climate Policy and Plans

Aegon the Netherlands commits to reduce emissions from their own operations by half in 2030 compared to 2018. It is worth noting that a majority of the emissions of Aegon comes from their investment rather than their own operations.

In November 2021, Aegon joined the Net-Zero Asset Owner Alliance, a UN-convened group of institutional investors committed to transitioning their portfolios to net-zero greenhouse gas emissions by 2050.[31] Aegon has said that this means that they are committed to transitioning its 156 billion euro general account investment portfolio. In order to reach this goal Aegon aims, by 2025, to reduce the weighted average carbon intensity of their corporate fixed income and listed equity general account assets by 25%. [32]

There are no short-term targets for the rest of the portfolio. There are no absolute reduction goals for the short-term. On page 370 of the 2021 annual report, 6 targets are stated.[33] 4 of these targets are in relation to the net-zero alliance and therefore do not include short term targets. The other two targets are about carbon-offset projects and responsible investments. The target about carbon-offset projects discusses the fact that Aegon's direct business operations have been carbon-neutral since 2019 (on a market-based measurement). Aegon has managed to do this through renewable sources and carbon offset projects. The one target that is important to be noted is the updated Aegon Responsible Investment policy. This policy shows which companies Aegon will not invest in based on their climate actions. For example, Aegon will no longer invest in companies that derive 25% or more of their revenue from the exploration, mining or refining of thermal coal. Another example of a company Aegon will no longer invest in is a company that produces more than 20 million tons of thermal coal annually and are actively expanding exploration, mining or refining operations. There is, however, no mention of a plan to stop investing in companies that produce zero oil or gas.

A recent update on the Aegon website states that Aegon Netherlands is currently working on a Climate Action Plan that describes in detail how its activities and investments will be aligned with the Paris Agreement. The plan is expected to be ready for publication by mid-2022.[34]

NewClimate Institute (NCI) Report

Due Diligence

Due Diligence

A case study for the Fair Insurance Guide Netherlands named Insurance companies’ responses to human rights abuses in the extractive industry that was published in 2021, concluded that Aegon could not demonstrate that they are taking sufficient action against long-term human rights violations.[35] The study selected eleven companies that are involved in structural human rights violations and then researched to what extent insurance companies were involved with these companies. Aegon achieved a total score of 4.4 out of 10, and is ranked as fifth among the insurance companies assessed in this study. Within the scope of this research, Aegon had financial links with nine out of eleven selected companies.[36]

Scandals and controversies

Research from De eerlijke Geldwijzer (Fair Finance) showed that Aegon scored very low on both Climate Change (3/10) and Nature (1/10).[37] When it comes to climate change it is shown that from Aegon's investment in the energy sector 93% went to fossil fuel whereas only 7% went to renewable energy. [38] The score of 1 for nature is mainly based on the fact that Aegon invested 37 million euros into companies in which the risk is high that they are directly or indirectly involved in the deforestation in the Amazon.

Conclusion

Aegon is a Dutch company with a revenue of 25.2 billion euros and a great influence by serving 31.7 million customers worldwide. It is therefore important that Aegon takes enough action to meet the targets set by the Paris agreement. Currently, Aegon mainly has long-term net-zero plans and only a relative short-term goal for only a part of its portfolio. It does not report CO2 emissions on all of its portfolio.

References

  1. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p24
  2. ↑ https://www.aegon.com/about/who-we-are/
  3. ↑ https://www.aegon.com/about/who-we-are/our-brand/
  4. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf P3
  5. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p94
  6. ↑ https://www.aegon.com/about/governance/executive-board/
  7. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p70
  8. ↑ https://www.aegon.com/about/governance/management-board/
  9. ↑ https://www.aegon.com/about/governance/supervisory-board/
  10. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p60
  11. ↑ https://www.aegon.com/contentassets/88a9aa9e0e484dec9791c3bb5945512b/aegon-integrated-annual-report-2020.pdf p. 121
  12. ↑ Aegon. (2022). Aegon Integrated Annual Report 2021, p. 287. Retrieved from https://www.aegon.com/investors/annual-reports/
  13. ↑ https://www.aegon.com/about/
  14. ↑ https://www.aegon.com/about/who-we-are/
  15. ↑ https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf
  16. ↑ https://klimaatcommitment.nl/over-het-klimaatcommitment/
  17. ↑ https://www.tweedekamer.nl/kamerstukken/detail?id=2021Z23668&did=2021D50219 p. 32
  18. ↑ https://www.tweedekamer.nl/kamerstukken/brieven_regering/detail?id=2021Z18874&did=2021D40543 p. 2
  19. ↑ https://www.asnbank.nl/web/file?uuid=69aed792-aed6-4add-9241-5ab03621ce0e&owner=6916ad14-918d-4ea8-80ac-f71f0ff1928e&contentid=2088
  20. ↑ https://www.greenpeace.org/nl/greenpeace/14056/aegon-stapt-uit-smerigste-olieproductie-2/
  21. ↑ https://www.nu.nl/duurzaam/5320943/pensioenbeleggers-investeren-ruim-1-miljard-in-vervuilende-oliewinning.html
  22. ↑ https://www.greenpeace.org/nl/greenpeace/14056/aegon-stapt-uit-smerigste-olieproductie-2/
  23. ↑ https://www.aegon.com/contentassets/01ff7a45578d4e5e8925d6c87b1a0d41/aegon-annual-report-2017.pdf p.147
  24. ↑ https://www.aegon.com/contentassets/01ff7a45578d4e5e8925d6c87b1a0d41/aegon-annual-report-2017.pdf p.147
  25. ↑ https://www.aegon.com/contentassets/01ff7a45578d4e5e8925d6c87b1a0d41/aegon-annual-report-2017.pdf p.147
  26. ↑ https://www.aegon.com/contentassets/14bdec897d244680b202b22291c751ec/aegon-integrated-annual-report-2019.pdf
  27. ↑ https://www.aegon.com/contentassets/14bdec897d244680b202b22291c751ec/aegon-integrated-annual-report-2019.pdf
  28. ↑ https://www.aegon.com/contentassets/5a2428e87caf4185abb1ff55f476f147/aegon-integrated-annual-report-2020.pdf
  29. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf
  30. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p389
  31. ↑ https://www.aegon.com/sustainability/our-approach/climate-change/
  32. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf
  33. ↑ https://www.aegon.com/siteassets/iar/2021/aegon-integrated-annual-report-2021.pdf p370
  34. ↑ https://nieuws.aegon.nl/aegon-nederland-stelt-heldere-klimaatdoelen/
  35. ↑ https://paxforpeace.nl/what-we-do/publications/insurance-companies-responses-to-human-rights-abuses-in-the-extractive-industry
  36. ↑ https://paxvoorvrede.nl/media/download/2021_06%20Final%20report%20Human%20Rights%20and%20Extractives.pdf p84
  37. ↑ https://eerlijkegeldwijzer.nl/verzekeringswijzer/verzekeraars/aegon/
  38. ↑ https://eerlijkegeldwijzer.nl/verzekeringswijzer/verzekeraars/aegon/
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