Disclaimer: science based portfolio coverage target

a.s.r. Nederland N.V. has committed to implementing targets based on the guidelines of—and having targets validated by—the Science Based Targets initiative (‘SBTi’), in accordance with the ‘Financial Institutions Near-Term Criteria’, version 2.0, May 2024. As part of this commitment, a.s.r. asset management B.V. (AVB), acting as asset manager on behalf of a.s.r. Nederland N.V. and other (a.s.r. entities as) asset owners, has established a Portfolio Coverage (‘PC’) target. Under this commitment, a.s.r. Nederland N.V. pledges, through AVB’s management activities, that 52% of the market value in its investment portfolio will have SBTi-validated targets by 2030 (base year 2023, 2022 data: 19%) (the ‘Target’).

Progress toward the Target will be monitored and disclosed in the annual reports of a.s.r. Nederland N.V.

SBTi guidelines prescribe that portfolio coverage must increase linearly toward 2050—in AVB’s case, from 19% in 2023 to 52% in 2030. The Target has been established with a one-year data lag, based on the composition of the investment portfolio as of year-end 2023 and SBTi validation data for 2022. Applying this consistent one-year lag ensures comparability throughout the entire Target period and limits variability caused by delays in the data collection processes of our data providers.

The Target is based on the current size and composition of the investment portfolio as of year-end 2023. Potential future changes resulting from client onboarding and/or shifts in strategic asset allocation (for example, toward regions with lower SBTi coverage, such as the United States), as set forth in the mandate guidelines and restrictions, are not part of the current Target.

AVB aims to promote progress toward the Target through engagement with its portfolio companies, encouraging them to set and validate science-based targets. In doing so, AVB will focus on a subset of companies for which such a commitment is feasible and which contribute to achieving the Target (measured in market value). Consequently, the efforts undertaken in this context should be seen as pertaining to a limited portion of total investments. Portfolio divestments or investment restrictions are explicitly not part of this commitment, as such divestments or restrictions would impede AVB’s fiduciary duties to its clients under the mandates granted to AVB.

Achieving the Target is not entirely within AVB’s sphere of influence. For instance, portfolio companies may withdraw their SBTi targets or fail to obtain SBTi validation. Furthermore, market, geopolitical, or regulatory developments may hinder progress, and strategic changes in portfolio composition, client inflows, or benchmark revisions may further influence progress toward achieving the Target. To achieve the Target, AVB expects SBTi to continue methodology development and the expansion of sector guidelines, and to maintain sufficient validation capacity.

In accordance with its fiduciary duties, AVB will work with its portfolio companies to promote progress toward achieving the Target, on the understanding that portfolio divestments or reallocations to achieve the Target are explicitly not part of this commitment. If achieving the Target becomes incompatible with its fiduciary obligations to its clients, a.s.r. Nederland may ultimately be forced to adjust the Target or reconsider its SBTi commitment.

It is assumed that no material changes have occurred in the investment universe, structure, or activities of a.s.r. Nederland N.V. since the end of 2023 that would necessitate a baseline revision under SBTiFI-R14. Should such changes occur, the Target will be recalculated in accordance with the ‘SBTi Financial Institution Guidance and Near-Term Criteria’ (version 2.0, May 2024).