Aegon has a Climate Change Working Group (CCWG) which is the primary body responsible for assessing and monitoring climate-related issues within the company (which includes Aegon Asset Management). The CCWG is a working group of the board-level Responsible Business and Investment Committee (RBIC) and is tasked with evaluating new climate developments affecting investment, insurance and our other business activities, and recommending further action when necessary.
The CCWG meets at least quarterly. It is chaired by Aegon Asset Management’s Responsible Investment team, and comprises representatives from different functional areas across the company including investment portfolio risk management, operational and underwriting risk management, investment analysis, investor relations and reporting, corporate strategy and sustainability, public affairs and responsible investment.
Climate-related issues assessed as relevant or material by the CCWG are presented to the Responsible Business and Investment Committee through regular reporting as well as to Aegon’s Chief Risk Officer and Aegon’s Management Board through the quarterly risk management dashboard. The Management Board may then decide on management actions as appropriate.
For investment risk: portfolio managers and analysts incorporate ESG data in investment decisions. This includes climate change-related issues. In addition, we organize occasional sessions on climate-specific topics to raise awareness among portfolio managers and other stuff. For example, In July 2019, Aegon’s Climate Change Working Group hosted a workshop to provide background on climate change and insight on how a changing climate can be reflected in investments, as well as to discuss our progress and objectives approach as a company. The event took place at the Aegon head office in Den Haag and was made available via webcast to staff located in other offices around the world. External speakers presented on climate scenario analysis (Ortec Finance), climate risks and opportunities in fixed income (Moody’s), and company-level transition risk (Sustainalytics).