Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Responsible Investment
• Sustainable Procurement
• Sustainable Products and Services

Environmental Achievements

• Aim to minimize operational footprint by focusing on avoidance or reduction of GHG emissions to achieve a sustainable and net-zero emissions business by 2040.
• Improved energy efficiency and use of renewable electricity in buildings.
• Reduced business travel through hybrid working and public transport.
• Engaged in voluntary GHG offsetting programs.
• Implemented a circular and sustainable design using sustainable materials and reusing materials from renovations.
• Aimed for a zero-waste office with sustainable recycling.

Social Achievements

• Sustainable September awareness raising initiative.
• Nature clean-up activities as part of employee volunteering.
• Developing sustainable pension products incorporating ESG features such as ‘Human capital planner’ and GHG emissions compensation initiatives.

Governance Achievements

• Executive Board ensures adequate internal risk management and control systems.
• Annual evaluation of company’s risk appetite by the Executive Board, ratified by the Supervisory Board.
• Chief People, Communications, and Sustainability Officer (CPCSO) responsible for Corporate Citizenship, including sustainability.
• Chief Risk Officer (CRO) responsible for risk management, including sustainability risks.
• Risk and Compliance functions oversee implementation and monitoring of ESG-related regulations.

Climate Goals & Targets

Environmental Challenges

• Climate change related events present risks and losses resulting from severe weather conditions.
• Indirect environmental impact through investments, dependent on actions of investee companies, mortgage holders, and governments.
• Uncertainty in long-term climate change impacts.

Mitigation Strategies

• Assessing impact of physical climate risks on insurance underwriting portfolio.
• Managing physical climate risks and leveraging opportunities through insurance products.
• Engaging with investee companies to adopt environmentally responsible business practices.
• Supporting initiatives like Climate Action 100+ and the PRI.
• Developing asset class specific strategies and targets for net-zero commitment.
• Implementing a coal policy for insurance underwriting.

Supply Chain Management

Responsible Procurement

• ESG factor assessment in sourcing processes
• Sustainable and innovative solutions from suppliers
• Environmental performance evaluation in purchasing decisions
• Procurement Policy governing sustainability risks
• Supplier Code of Conduct (SCC) for suppliers above a spending threshold
• Supplier qualification platform for detailed information on environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions (floods, etc.)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Developing products that help customers adapt to and mitigate climate change impacts

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations, OECD Guidelines for Multinational Enterprises, UN Global Compact, UNEP FI, PRI, PSI, TCFD, SFDR, CSRD, PCAF, Net-Zero Investment Framework of the IIGCC, Paris Aligned Asset Owner initiative (PAAO), Net-Zero Insurance Alliance (NZIA)

Sustainable Products & Innovation

• Sustainable pension products with ESG features
• Insurance products protecting against physical climate-change impacts
• Energy-efficient mortgages

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investment
• Diversity & Inclusion
• Community Investment
• Tax Transparency
• Customer Experience
• Employee Engagement

Environmental Achievements

• 42% reduction in GHG emissions in 2023 compared to 2019 levels (Scope 1, 2, and 3)
• 50% fossil-free lease car fleet in the Netherlands in 2023
• 69% renewable electricity use in 2023

Social Achievements

• Supported >400,000 people in financial, physical, and/or mental well-being (cumulative since 2022)
• Employee engagement score of 7.8 (target ≥ 8.0 by 2025)
• 40% women in senior management positions (target ≥ 40% by 2025)
• Contributed 1.06% of operating result before tax to community investment in 2023

Governance Achievements

• 43% female representation on the Supervisory Board
• 50% female representation on the Executive Board
• Executive variable remuneration linked to medium-term strategic priorities (financial and non-financial performance)
• Consistent recognition for commitment to tax transparency

Climate Goals & Targets

Environmental Challenges

• Insufficient progress by some investee companies on sustainability transitions
• Increase in business air travel leading to higher emissions in 2023

Mitigation Strategies

• Run-off or divestment from companies not demonstrating sufficient progress
• Tightening fossil fuel-related policies
• Encouraging hybrid work to limit business travel
• Investing in voluntary carbon credits to offset remaining emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, TCFD, Principles for Responsible Investment, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 17 (Partnerships for the Goals)

Community investment programs and partnerships

Sustainable Products & Innovation

• Sustainable pension solutions
• Tools to support sustainable mobility and living

Awards & Recognition

• Top Employer (NN International Insurance)
• VBDO Tax Transparency Awards

Environmental Metrics

ESG Focus Areas

• Green Buildings
• Climate Change
• Sustainable Development Goals (SDGs 7 and 11)

Environmental Achievements

• Developed the NN Bank Green Bond Framework to finance green residential buildings.
• Launched the Woonnu mortgage label to incentivize energy-efficient homes.
• Created the Powerly platform to guide homeowners in improving sustainability.

Social Achievements

• Adheres to the Code of Conduct of the Nederlandse Vereniging van Banken (Dutch Banking Association) to prevent unethical lending practices.
• Launched the Healthy Living platform to raise awareness about indoor air quality.
• Engaged with 20,000 mortgage customers to reduce their carbon footprint in 2023.

Governance Achievements

• NN Bank’s Treasury team is responsible for evaluating and selecting assets for inclusion in its Eligible Green Loan Portfolio.
• NN Bank’s Non-Financial Accounting Committee will review and approve the Eligible Green Portfolio annually.
• Management Board oversees implementation and future updates to the Framework.

Climate Goals & Targets

Environmental Challenges

• Potential for predatory lending.
• Effluents, emissions, and waste from renovation projects.
• Occupational health and safety hazards.

Mitigation Strategies

• Following the NVB Code of Conduct to prevent unethical lending practices.
• Leveraging robust environmental and social governance, legislation, and institutional capacity in the Netherlands.
• Adhering to NN Group’s RI Framework policy for assessing ESG and climate change-related risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Pole rot

Reporting Standards

Frameworks Used: Green Bond Principles 2021, Green Loan Principles 2023, EU Taxonomy

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 7
• SDG 11

Financing green buildings contributes to improving energy efficiency and sustainable urbanization.

Sustainable Products & Innovation

• Woonnu mortgage label
• Powerly platform