How we apply our investment policy to conflict areas

a.s.r. regularly receives questions about how social and ethical considerations play a role in investment decisions. A frequently asked question concerns our policy on investments in Israel, Israeli companies, and enterprises active in occupied Palestinian territories. In this explanation, we outline how we work and which choices we make.

Investments in companies active in conflict areas

Many companies we invest in operate internationally. Sometimes they also have activities in conflict areas, such as the occupied Palestinian territories. Usually, these activities represent only a small part of their overall operations. Because we can exert more influence through dialogue (engagement), we currently choose not to withdraw our investments from these companies.

How we try to exert influence: engagement

We believe that, as an investor, we can have a positive impact by addressing companies on their social responsibility. This is what we call engagement. We actively engage with the companies in which we invest, especially when there is room for improvement in areas such as human rights, labour rights, climate, biodiversity, or activities in conflict areas. In this way, we aim to encourage companies to improve their policies and practices.

We deliberately choose engagement over exclusion, particularly when we believe we can exert influence. For example, we collaborate with other Dutch investors and conduct joint dialogues on human rights risks in conflict areas. Through such cooperation, we increase our impact. We also engage an organisation that conducts these dialogues on our behalf. For us, engagement is more important than immediate divestment, because it allows us to encourage companies to change.

Exclusions: when do we not invest?

In addition to engagement, we apply clear exclusion criteria, including for human rights (see our responsible investment policy). We also use criteria for countries: we do not invest in government bonds of countries that do not respect democratic freedoms or that score poorly on corruption and environmental management. For this, we use international indices such as the Corruption Perceptions Index, Freedom House Index, SDG Index, and Global Peace Index.

Transparency and up-to-date information

Our exclusion lists are evaluated and updated annually. Current lists can be found on the website under Our Policy. We also report regularly on the results of our engagement activities. Recent reports can be found on the website under ESG in practice.

Our policy is reviewed at least once a year, or more often if necessary, to ensure that it remains relevant and effective.