NN Group

NN Group N.V.
Quick Facts
Type	Public
sector	Financial Services
Headquarters (Benelux Organization)	Den Haag, Netherlands
Year of Origin	1845
Emissions (All Scopes)	14,7 Megatons of CO2 (2020)
Total Revenue	19,960 billion EUR (2020)
Stock Exchange	Bijv. Amsterdam
Key People	David Knibbe (CEO) Delfin Rueda
Number of Employees	15138
Subsidiaries	NN Group has 33 subsidiaries. For each country NN is active, there is one or more subsidiaries. Most subsidiaries are located in the Netherlands (6).

Nationale Nederlanden, stylized as NN Group,was founded in 1845. NN Group is a financial services company, active in several European countries and Japan. NN had 15118 employees in 2020, serving 18 million customers. NN is active in portfolio’s ‘life’, ‘non-life’, insurance, asset management and banking. NN’s balance sheet value was 263,738 billion in 2020. NN’s net income was 19,960 billion and the result was 1,904 billion in 2020. Total assets under management are 218,75 billion, of which 175 billion is assesed for its carbon footprint. The effective tax rate of NN was 18 percent. NN Group is headquartered in The Hague, Netherlands.

Company Structure

NN Group N.V. (NN Group) is a public limited company (naamloze vennootschap) incorporated under the laws of the Netherlands.

The authorised share capital of NN Group N.V. consists of ordinary shares and preference shares. Currently, only ordinary shares are issued, while a call option to acquire preference shares has been granted to the NN Group Continuity Foundation (Stichting Continuïteit NN Group). No legal or natural person holds more than 10 percent of the shares.

NN Group is a Dutch company by origin and therefore has its headquarter in The Netherlands. NN Group has 33 subsidiaries. For each country NN is active, there is one or more subsidiaries. Most subsidiaries are located in the Netherlands (6).

Board of Directors

Executive Board

Name	Function	Remuneration x1000 EUR
David Knibbe	Chief Executive Officer	2050
Delfin Rueda	Chief Finanacial Officer	1669

Management Board

The management Board exists of the executive board and other members appointed by the executive board and supervisory board. Besides the executive board, members of the management board are:

Management Board

Name	Function
Satish Bapat	CEO NN Investment Partners
Tjeerd Bosklopper	CEO Netherlands Non-life, Banking & Technology
Bernhard Kaufmann	Chief Risk Officer
Dailah Nihot	Chief Organisation & Corporate Relations
Leon van Riet	CEO Netherlands Life & Pensions
Fabian Rupprecht	CEO International Insurance
Janet Stuijt	General Council

There is no information available on the individual remuneration of the management Board.

Supervisory Board

The Supervisory Board is responsible for supervising the management of the Executive Board and the general course of affairs of NN Group and the businesses affiliated with it. The supervisory board exists of:

Supervisory Board

Name	Function	Remuneration x1000 EUR
David Cole	Chair	189,721
Helene Vletter-van Dort	Vice-chair	140,521
Heijo Hauser	Member	134,041
Robert Jenkins	Member	122,254
Hans Schoen	Member	138,152
Clara Streit	Member	122,254

Accountant

The external accountant of NN Group is KPMG. It has been so since the financial year of 2015.

Main Activities

NN is a financial services company active in 19 countries. NN provides retirement services, pensions, insurance, investments and banking to approximately 18 million customers. NN is active in portfolio’s ‘life’, ‘non-life’, insurance, asset management and banking. NN is mainly active in European countries and Japan.

Government

NN Group has not received royal status. NN Group did not receive NOW support during Corona times.

Paris Agreement to Today

In July 2019, NN signed the commitment of the financial sector to the Dutch Climate Agreement and thereby commits to contribute to the financing of energy transition, to disclose the carbon footprint of our relevant investments and publish an action plan in 2022.

NN has published an analysis on the carbon footprint of their proprietary assets every year since 2019, extending the scope every year so far.

Financial Situation

The table below shows the financial position of NN-Group since 2015. As is visible, there are plenty of resources available within NN-Group.

Financial situation

Year	Revenue	Profit	(Comprehensive) income attributable to shareholders	Dividend
2015	13,995 billion EUR	1,595 billion EUR	973 million EUR	271 million EUR
2016	14,321 billion EUR	1,190 billion EUR	3,085 billion EUR	298 million EUR
2017	17,816 billion EUR	2,132 billion EUR	345 million EUR	370 million EUR
2018	20,050 billion EUR	1,133 billion EUR	833 million EUR	421 million EUR
2019	20,458 billion EUR	1,985 billion EUR	9,081 billion EUR	411 million EUR
2020	19,960 billion EUR	1,926 billion EUR	7,032 billion EUR	400 million EUR
2021 (not yet disclosed)	XXX Billion EUR	XXX EUR	XXX EUR	XXX EUR

Scandals and Controversies

Any dirt on the companies can be added here.

Current Emissions

In order to achieve its target of net-zero emissions in 2050, NN plans to build on existing climate initiatives, such as phasing out thermal coal-exposed investments from its investment portfolio by 2030 and NN IP’s active dialogues with investee companies on climate-related matters.

For the third year in a row, NN has disclosed the carbon footprint of its proprietary assets, currently covering 80% of its total portfolio.

Carbon Footprint of Proprietory Assets 2020:

	Fixed Income	Equity	Residential Mortgages	Real Estate Investments
Assessed Assets (billion)	113	6	49	7
Carbon Footprint (tonnes CO2/EUR million invested)	97	112	19	6
Total Emission (in megatonnes CO2)	10,961	0,672	0,931	0,042

The different categories total emissions of 12,6 megatonnes of CO2 eq.

Weighted average Carbon Intensity in tonnes per million euro’s of revenu is 106. Total revenue is 19,96 billion. This amounts to an extra calculated emission of 2,11576 megatonnes CO2 eq.

Total scope 3 emissions reported in 2020 therefore amount up to 14,72 megatonnes of CO2 Eq. This however is 80 percent of the assets and covering only scope 1 and 2 emissions. This calculation has been done for every year since 2015 where data was available.

Total emissions since 2015 ( in megatonnes CO2-eq.)

Year	Scope 1	Scope 2	Scope 3	Total
2015	0,021 (1&2)	Unknown	Unknown	Unknown
2016	0,022 (1&2)	Unknown	28,408	28,430
2017	0,025 (1&2)	Unknown	32,118	32, 143
2018	0,023 (1&2)	Unknown	17,788	17,801
2019	0,020 (1&2)	Unknown	14,221	14,241
2020	0,013 (1&2)	Unknown	14,722	14,735
2021 (No annual report published yet)	XXX	XXX	XXX	XXX

Calculations for scope 3 are based on the data in the annual report of the respective year and calculated in the same fashion as the table with the calculation of scope 3 emissions over 2020.

Climate Policy and Plans

NN committed to achieve a net-zero carbon proprietary investment portfolio by 2050. Their approach has two dimensions: decarbonisation of the investment portfolio, and increasing investment in climate solutions. Going forward, NN aims to set a science-based target to commit to reducing our absolute scope 1 and 2 CO2 emissions. NN-Group will phase out coal in their portfolio by 2030. Financed emissions associated with the NN mortgage portfolio have remained stable in 2020 compared to 2019.

NN's 2020 target is to reduce CO2 emissions from direct operations by 3% per FTE per year. Going forward, NN aims to set a science-based target to commit to reducing its absolute scope 1 and 2 CO2 emissions. It must be noted that scope 1 and 2 emissions amount to only a faction of NN's total emissions. The majority of emissions is in scope 3.

NN has published a set of interim targets to steer and monitor the transition of the investment portfolio to achieve net-zero GHG emissions by 2050.

• Transitioning investment portfolio with asset-class specific strategies
• Decarbonise corporate investment portfolio
• Invest in frontrunners of the transition journey
• More than double investments in climate solutions by 2030
• Sharpening targets for business operations

By 2025, NN aims to reduce GHG emissions of its corporate investment portfolio by 25%, and by 2030 by 45% compared to 2019.

Due Diligence

Keep the broader context in mind. Is the company integer when it comes to deforestation, palm oil, biodiversity, human rights etc etc? Be critical in the sources used here.

Conclusion

NN is a service provider generating a massive profit of 1,9 billion euro’s annually. NN has an enormous amount of money under management (of which most is public money) , creating great opportunities and responsibilities. NN is internationally active and is therefore morally obliged to make a difference internationally as well. NN has made steps towards disclosure of their environmental impact, and every year broadens the scope of this disclosure. Currently, the carbon footprint of over 80 percent of NN’s portfolio is disclosed. Information on scope 3 is not yet available. NN has clear goals towards 2030 and 2050 that seem to be in line with current international laws and agreements. The interim goals and means to get to these longterm goals are however not concrete enough. Supporting calculations and numerical, measurable goals increase the trustworthiness of the policy and long-term goals. Clear and measurable goals might make it easier for policymakers within NN to confidently steer the investment portfolio towards climate neutrality.