The report shows AAM’s commitment to supporting sustainable finance – not only ensuring that we take a responsible approach when making investments, but also that we target investments that bring clear social and environmental benefits.
We've made a number of changes to the report this year. We've focused more on policy, strategy and performance, we've expanded reporting on climate change, and highlighted new AAM products recently launched in Europe and in the US.
For the first time, there's also an eight-page 'report-within-a-report' on recommendations issued by the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) – this includes a scenario analysis, showing the potential impact of global warming on Aegon's investment strategy. More and more companies are now adopting the TCFD's reporting recommendations, issued nearly two years ago.
Writing in this year's report, CEO Sarah Russell stresses the importance of responsible investing as an integral part of Aegon's overall Responsible Business approach. AAM, she says, will use its investment power to help create a cleaner and healthier environment – one of Aegon's Responsible Business pillars.
Through our investments, we're already making a significant contribution to the UN's 2030 Sustainable Development Goals, particularly in areas like clean energy and sustainable real estate. At the end of 2018, these 'impact investments' totalled EUR 8.4 billion.
Our 2018 report is sets out our approach to key issues when it comes to investment – e.g. climate change, tobacco, human rights and the international arms trade. It also covers our work on public policy, and engagement with the companies we invest in – on social, environmental and governance issues – to try to improve performance and further increase returns to clients.