Engagement outcome: NN Group's updated Climate Action Plan

The updated Climate Action Plan includes additional scope 3 emissions reduction targets and increasingly aligns with PGGM’s climate-related expectations of listed financial institutions. In collaboration with Eumedion, PGGM has been engaging with NN since 2019 on climate change mitigation, amongst other key topic such as biodiversity, human rights and executive remuneration. Engagement with financial institutions, such as NN, help PGGM lower its own scope 3 carbon emissions as well, as well as contributing to the energy transition in the markets where its active.

NN Group has businesses in Europe and Japan. It is one of the Netherlands’ leading insurers, with brands such as Nationale Nederlanden and OHRA. In addition to insurance activities, NN also provides retirement services, pensions, banking and investment management. In its first climate action plan, published in 2022, NN Group committed to Net Zero for their own operations by 2040 and their investment portfolio by 2050. NN set interim targets for both. An important part of their strategy is to restrict coal investments.

PGGM had meetings with NN over the years and visited NN's AGMs with the aim of influencing its climate strategy. In May 2023, during a company dialogue, we asked NN to develop insurance-related emissions reduction targets in line with the Paris Agreement, to verify its climate targets by an independent third-party, and put a Say on Climate resolution to vote.

In July 2023, we learnt that NN updated its climate action plan to include emission reduction targets for insurance underwriting, real estate and mortgages, in line with our ask to develop insurance-related emission reduction targets. The updated plan contains a new Net Zero target for their insurance-related emissions by 2050. It also features interim targets for direct and indirect real estate activities, mortgage activities and commercial insurance activities. Furthermore, in the updated climate action plan, NN introduces an insurance coal policy and broadens unconventional oil & gas exclusions.

For more information on NN Group’s Climate Action Plan and its climate-related targets, click here.

PGGM will keep engaging with NN Group, as it has yet to develop targets for private motor insurance activities, submit its targets to an independent third-party for scientific verification, as well as put to vote a Say on Climate resolution.