As an institutional investor, one way in which a.s.r. demonstrates its social responsibility is in its use of ethical and sustainability criteria in the investment policy. All investments managed by the Financial Markets department are screened based on the socially responsible investment (SRI) policy, focusing on aspects such as social and environmental criteria. Countries and businesses that do not meet the criteria are excluded. Positive selection takes place where scores on the named aspects are above average. Screening of businesses is based on external, independent research by Vigeo (www.vigeo.com/csr-rating-agency), our screening provider accredited by Arista standards. Furthermore, independent external certification is provided by Forum Ethibel (forumethibel.org/ content/home.html) in the form of an annual audit of a.s.r.’s investment portfolio.
In asset management, a.s.r. makes its selection based on best practices and best products in accordance with environmental, social and governance (ESG) criteria. The policy applies to all investments in countries (government bonds) and in businesses (equities and corporate bonds). This means, for instance, that a.s.r. invests more in businesses that score best on the ESG criteria within their branch of industry as long as they match the investment guidelines of the portfolio. a.s.r. also invests in businesses that make a sustainable contribution to society, for instance by processing or recycling their waste, use of clean energies (solar and wind), reducing their environmental impact or energy consumption, and that – just as a.s.r. does – make a contribution to the circular economy. Further expansion took place in 2013, with a third round of investment in waste processing/recycling. A total of € 35 million has now been invested in impact investments. Impact investments are investments made in companies, organizations and funds with the intention to generate a beneficial social and environmental impact, in addition to a financial return.
a.s.r. also implements a strict exclusion policy in relation to controversial activities by countries and businesses. This covers producers of, for example, controversial or offensive weapons, nuclear energy, gambling and tobacco. a.s.r. also requires businesses to comply with international conventions on human rights and labour rights, and applies criteria relating to gender equality, freedom of union and the exclusion of child labour. With regard to investments in sovereign debt, a.s.r. excludes countries that have
a poor score in the Freedom in the World Annual Report and the Corruption Perceptions Index. Parts of the SRI policy were expanded and strengthened in 2013; the most recent version of the Sustainable Investment Policy can be found on our website: www.asr.nl/EN/about-asr.
a.s.r. subscribed to the United Nations Principles for Responsible Investment (UNPRI) in 2011. These principles aim to encourage socially responsible investment. More than 95% of external asset managers responsible for a.s.r.’s investments have now also signed the UNPRI. ESG aspects are being incorporated into the investment processes of increasing numbers of external asset managers. a.s.r. has been a signatory to the United Nations Global Compact Principles (UNGC) since 2011. The UNGC asks businesses to embrace, support and implement within their sphere of influence a number of principles relating to human rights, labour standards, the environment and the fight against corruption. a.s.r. also abides by the Sustainable Investment Code of the Dutch Association of Insurers, which came into effect on 1 January 2012. The Code stipulates that the investment policies of members of the Association must take account of environmental, social and corporate governance (ESG) aspects at the entities in which they invest.
Finally, a.s.r. signed the United Nations Principles for Sustainable Insurance (UN PSI) in 2013. These principles were published in 2012 at the UN Conference on Sustainable Development (www.unepfi.org/psi). These have now been signed by 38 insurance companies around the world (reference date: 31 December 2013), including six Dutch insurers. The UN PSI principles are as follows: 1. We will embed in our decision-making Environmental, Social and Governance (ESG) issues relevant
to our insurance business (Company Strategy, Risk Management and Underwriting, Product & Service development, Claims Management, Sales & Marketing and Investment Management) 2. We will work together with our clients and business partners to raise awareness of ESG issues,
manage risk and develop solutions (Clients & Suppliers, Intermediaries, Reinsurers)
3. We will work together with governments, regulators and other key stakeholders to promote widespread action across society on ESG issues.
4. We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.
In accordance with the Dutch Corporate Governance Code and a.s.r.’s SRI policy, a voting policy (www.asr.nl/EN/about-asr) has been developed for a.s.r. to fulfil its role as an institutional investor. This voting policy is applied to all internally managed and exchange-traded equities. Voting accountability offers insight into the exercise of a.s.r.’s voting rights at shareholder meetings of its associates. a.s.r. believes in engagement through constructive dialogue with the businesses it invests in with the aim of increasing shareholder value and social benefit in the long term. If a business has controversial activities and this dialogue does not come to a positive conclusion, this will result in exclusion from the investment portfolio. In 2013, a.s.r. raised issues with a number of businesses for weaknesses relating to respect for human rights and labour rights, and also relating to environmental pollution. Throughout 2013, dialogue was held with around 20 business in which a.s.r. holds shares; this represents almost 50% of the internally managed equities portfolio. In this dialogue (at least once per year), a.s.r. puts the corporate social responsibility policy of these businesses on the executive agenda and addresses any controversial activities. a.s.r.’s input is generally welcomed by the management of these companies as being constructive.
For the third consecutive year a.s.r. achieved third place in the annual survey conducted by the Dutch Association of Investors for Sustainable Development (Dutch acronym: VDBO) among 30 insurers in the Netherlands. Aside from policy, implementation and transparency of investments, VDBO also appraised governance (management and supervision of the investments) for the first time in 2013. a.s.r. was the only insurer to obtain the maximum score for governance.
In September 2013, the Fair Insurance Guide (Eerlijke Verzekeringswijzer) was published for the first time; it is an initiative of Friends of the Earth Netherlands (Milieudefensie), the Dutch Society for the Protection of Animals (Dierenbescherming), Pax for Peace, Oxfam Novib, Amnesty International and the FNV labour organization. The aim of the Fair Insurance Guide (FIG) is to encourage insurers to make their investment policy sustainable and to optimize practical implementation. It includes a
comparison of the sustainability aspects of the ten largest life insurance providers in the Dutch market. In the first publication (www.eerlijkeverzekeringswijzer.nl), a.s.r. came in third place among all surveyed insurers and was praised for its policy on weapons. The FIG also conducted a Practical Study of Human Rights among 17 Dutch banks and insurance companies, the results of which were published in December 2013. With a score of 7 out of 10, a.s.r. came joint second, with the FIG remarking that a.s.r. is meeting its responsibilities sufficiently. Following the two FIG publications, a.s.r. consulted with FIG to make further improvements in its socially responsible investment policy. This resulted in a number of useful suggestions for a.s.r. from the six founding organizations. Public responses to the SRI policy received via the website of FIG were followed-up by a.s.r.