ESG integration
Our approach to ESG integration

Our commitment to responsible stewardship is a core principle that guides how we manage our client’s assets across fixed income, real assets, equities, and multiasset strategies. Our investment teams integrate material ESG factors and stewardship considerations into the investment process in a comprehensive manner, where possible. The approach can vary across asset classes, but the underlying philosophy remains consistent – to evaluate financially material ESG issues alongside traditional analysis as part of a comprehensive assessment of risks and potential opportunities.

 

Aegon AM has developed tailored methodologies to integrate material ESG considerations across asset classes.

Read our Responsible Investment Framework here
Environmental

Greenhouse gas emissions

Water and wastewater impacts

Hazardous materials and air quality

Biodiversity impacts

Material sourcing

Product design and lifecycle management

Social

Human rights and stakeholder engagement

Data privacy

Product safety and sales practices

Health and safety

Labor management

Supply chain management

Governance

Governance structure

Accounting practices

Remuneration

Business ethics, fraud and corruption


Cyber security

Examples of ESG factors we may consider in corporate issuer analysis, depending on their materiality to the issuer’s key activities and operational practices

The four steps of our ESG integration process
Identification

Research analysts identify key ESG and non-ESG factors specific to the company, sector or country.

Assessment

Research analysts assess for each factor whether it is material to the fundamental characteristics of the issuing party.

Processing

Research analysts incorporate the relevant impact of ESG factors into the overall credit assessment and their credit advice. The assessment and advice serve as a starting point for discussion with portfolio managers.

Integration

Portfolio managers incorporate analyst advice into portfolio composition in accordance with the client's mandate.

Considering climate risks and opportunities in our fundamental research processes

We integrate climate-related factors into our ESG analysis where relevant as part of the fundamental research framework. Utilizing their industry, country or asset class expertise, analysts identify the most material and relevant climate-related factors and assess the potential effect on fundamentals.  

More on Climate change
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