We are convinced that ESG integration makes economic sense as it leads to better risk-adjusted returns. As part of our continuous improvement, we have switched to benchmarks composed of higher ESG rated companies for our active listed equity and corporate bond portfolios. This allows us to have both the right measurement as well as appropriate incentives for our portfolio managers. For our buy-and-hold portfolios, we apply the same methodology as used to construct the ESG benchmarks, considering minimum ESG rating thresholds. For our Government bonds, we consistently apply the same approach considering a minimum ESG rating threshold of BB for investments. Any potential exception to the minimum rating would be driven by asset-liability matching considerations.

As part of our Inclusion approach, we also measure our real-world impact and align it to the Sustainable Development Goals (SDGs). Hereby, we focus on the five SDG, "Good health and well-being", Quality education", "Affordable and clean energy", "Industry, innovation and infrastructure" as well as "Sustainable cities and communities".