Asset management
Environmental and social investment criteria
VIG manages around EUR 35.3 billion in investments (for more information please visit our Interactive Key Figures Tool). The Group makes it an absolute priority to invest the premium payments in a way that ensures it can fully meet its obligations to customers at any time. It therefore focuses on security for investments, with a preference for good credit ratings and, as a result, stable returns. At the same time, however, VIG also takes responsibility for the social and environmental effects of its investments and implements expanded sustainability criteria.
Sustainability criteria in our investment decisions
VIG's long-term objective in the spheres of impact asset management is to reduce emissions from the investment portfolio to net zero by 2050. The insurance group has therefore started collecting data on its scope 3 emissions and is constantly working to improve data quality. This data forms the basis for measuring VIG's progress in the sphere of impact asset management.
Social and environmental criteria have been deliberately taken into account in the investment process since 2019. This approach was comprehensively updated in 2023 and is entitled "Responsible Investment". The declaration supports a sustainable economy and can contribute to improving the environment and society.
One focus of the new declaration is active exchange and dialog with companies to encourage them to improve their sustainability performance. This activity is referred to as engagement and is disclosed in an annual report.
In addition to the engagement approach, VIG has tightened its existing exclusion criteria and added new ones. The exclusions relate to the following areas:
- Thermal coal
- Unconventional oil and gas
- Banned weapons
- Violation of human rights and the principles of the UN Global Compact
Continuous increase of investments in green bonds
VIG's declaration "Responsible Investment" also specifies that the share of environmentally friendly investments is to be increased. Green bonds, that is, bonds used to fund environmentally friendly projects, are one example of this.
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Green Bonds (in EUR mn) |
1,199 | 829 | 435 | 238 | 154 |
VIG was the first insurance company in Europe to issue a benchmark sustainability bond
VIG issued a EUR 500 million sustainability bond in March 2021. Around 50 institutional investors in twelve European countries subscribed to the bond. More than three quarters of them manage portfolios that explicitly focus on sustainability. In addition to improving the long-term financial planning of the Group, the capital is also being used for investments in both social and environmental projects. This makes VIG the first insurance company in Europe to place a sustainability bond – not just a green bond focusing on environmental projects – on the market. The net proceeds from the issue are being used for projects in the areas of renewable energy, green buildings and clean transportation, as well as social projects for more affordable housing and better access to basic services such as education and healthcare.
Controlled investments
A sustainability bond framework developed in-house establishes clear criteria for which green and social projects the capital can be used. Sustainalytics, an independent ESG rating agency, assessed the framework as credible and effective. A sustainability bond committee ensures that the capital is used in accordance with the framework. It consists of representatives from different areas of the Group, such as Treasury, Asset Management, ESG and Compliance, and decides whether the capital from the bond can be allocated to a project.
Investment in the real estate start-up Gropyus
The company is located in Vienna, and plans, builds and manages buildings. Sustainable materials, especially wood, reduce the environmental footprint, while automation and digitalisation reduce costs. Gropyus aims to make sustainable and, in the future, affordable housing possible for everyone and currently operates in Germany and Austria. As part of the VIG investment, these activities are to be expanded to other countries in the CEE region.
Six spheres of impact of sustainability
The VIG 25 sustainability programme is divided into six spheres of impact in which the Group-wide sustainability efforts have been aggregated
