** Other includes Group staff, Chief Investment Office and NN Re.
Where we stand Our target is to reduce the CO2 emissions of our direct operations by 3% per year. In 2018, our CO2 emissions (scope 1 and 2) per FTE showed a decrease of 6%. We aim to further decrease our CO2 emissions every year.
Furthermore, we joined the Climate Action 100+ initiative and supported the launch of the International Corporate Social Responsibility (ICSR) covenant for the Dutch insurance sector. Finally, NN IP’s assets under management in sustainable and impact investing funds and mandates increased by more than 50% to EUR 16.5 billion.
Risk shifting towards customers Risk is gradually shifting from governments towards individuals in areas such as healthcare and supplementary pensions. Also, due to labour market and demographic developments, and the low interest rate environment, new life insurance and pension products offer fewer or no guarantees. This contributes to investment risk being shifted from institutions to individual customers. Customers need to take into account that solid financial protection requires saving and careful planning throughout a person’s lifetime. There is a concern that not everyone will be able to understand, manage or absorb such risks. The financial services industry bears a responsibility, together with other stakeholders, to help increase awareness around this trend and support customers in making conscious choices for their future financial well-being.
In flu en ce o n st ak eh ol de rs
4 Business ethics While business ethics are often guided by legislation and regulations, they also provide a basic framework for businesses to follow in order to gain public trust. Companies are expected to observe values-based principles in how they treat their employees, their attitude to the environment, and fair market practices in areas such as pricing.
We work with Minimal Viable Products, which are first versions of products or services, that help us gather customer feedback timely, and enable us to improve, iterate, pivot or – sometimes – stop solutions. If new products or services turn out to be successful, we can decide to bring them back into NN or one of our subsidiaries and integrate them into our existing business.
As part of our strategy to become more digital, NN Life is unlocking Individual Life systems to online customer and broker portals. This will give customers online access to their product details via the mijn.nn environment and NN app, allowing them to find relevant information and digital documents, and to apply policy changes. Over 1 million customers use mijn.nn, and that number continues to rise.
Strategic focus for the coming years We are anticipating changing customer needs and behaviours, and strive to be where our customers expect us to be. In line with market developments, we will gradually transform and work towards a new operating model. The foundation is our strong customer base, with approximately 6.7 million retail and 360,000 SME and corporate customers, whom we serve through our retail, business and broker platforms, and via our business partners.
In Spain, we continue improving the digitalisation focus on the customer journey: we redesigned the digital sales process in the tied agent channel, using iOS technology to make it more customer friendly, robust and secure. We are working to increase, in the near future, other service functionalities such as chat, smart email handling, callback and co-browsing.
At the end of 2018, we migrated our internal performance attribution analytics platform (which helps us explain why a portfolio performed differently from benchmark) to an Aladdin-based tool. Aladdin is our operational platform for investments. This migration helps us not only to reduce risks and costs, but also to further leverage our internal investment platform.
Another sustainable fund launched in 2018 was the NN (L) European Sustainable Infrastructure Debt Fund. This fund addresses growing investor demand for infrastructure debt investments with robust and predictable cashflows, generated from assets that contribute to a more sustainable future. Infrastructure debt is seen by investors as attractive as it contributes to public assets and services that generate social, environmental and economic benefits.
In 2018, our NPS-r score in Hungary and Spain decreased compared with both 2017 and the market average. In Poland, Turkey and Romania, our NPS-r score increased compared with both 2017 and the market average. We are careful in drawing conclusions from decreased or increased NPS-r scores based on one year; however, we will monitor the
Training and development NN is committed to life-long learning and offers a wide range of options for employees to develop their knowledge, competencies and skills. In 2018, NN Group invested EUR 21.5 million in training and development.
In Greece, in cooperation with Orange Grove and the Dutch embassy, NN Hellas organised a Meet & Greet for teams and mentors participating in the Ideas That Change Us acceleration programme. Together with NN Hellas executives, Orange Grove partners and business acceleration specialists, IdeaHackers, teams work to develop their ideas into viable businesses that contribute positively to society.
The NN Future Matters scholarship programme, a collaboration between NN and EP-Nuffic, gives first-generation higher education students the opportunity to complete a Master’s degree in the Netherlands. Students are matched with an NN mentor, who supports them during the year.
NN Future Matters 84% – Promoting financial empowerment 23% – Creating economic opportunities 40% – Alleviating financial distress 21% Health 7% Nature and animals 3% Disaster relief 1% Other 4%
To maintain and build the trust of our customers and other stakeholders, it is important we manage those factors that we have identified as influencing behaviour within business units — our so-called ‘Conduct Drivers’.
Executive Board 1. Lard Friese (1962) Chief Executive Officer Appointed: 2014 Reappointed: 2017 Nationality: Dutch Lard Friese was appointed member and Vice-chair of the Executive Board of NN Group on 1 March 2014, and Chief Executive Officer (CEO) and Chair of the Management Board and Executive Board on 7 July 2014. He was reappointed on 1 June 2017. Lard is responsible for the strategy, performance and day-to-day operations of NN.
9. Janet Stuijt (1969) General Counsel & Head of Compliance Appointed: 2018 Nationality: Dutch Janet Stuijt was appointed to the Management Board as General Counsel & Head of Compliance on 1 September 2018. She is responsible for NN Group’s legal and compliance function and holds the position of company secretary.
The Chief Organisation & Corporate Relations has Corporate Citizenship in her portfolio, which includes sustainability. Additionally, our Board members integrate sustainability in their respective businesses or functions where relevant. To steer and advise the Management Board on the implementation of the overall sustainability strategy, we have a dedicated Corporate Citizenship team.
Total number of young people reached through NN Future Matters programme2 38,536 37,208 27,529 1 Includes cash donations to charitable causes, corporate foundations and partnerships. 2 Numbers reached include partnership with JA and EP-Nuffic, the Future Matters anniversary donations and main Dutch programmes (excluding the From Debt to Opportunities programme).
CO2 emissions from energy consumed on NN sites 10 11 9
Description NN Group applies the GRI Standards and the <IR> Framework for the Annual Review. These frameworks require amongst others that the report provides an unbiased and clear picture of NN Group’s (non-financial) performance and that discussion of topics provides a complete view of the relevant aspects of these topics. In 2018, the integration of the Delta Lloyd operations and personnel into the NN Group organisation was a key focus area for the Executive Board. Furthermore, NN Group strengthened its approach to responsible investing. Therefore, we consider balanced and complete reporting on key topics (e.g. the Delta Lloyd integration and the responsible investment process) as significant to our review.
Assets under Management (AuM) in sustainable and impact funds and mandates