Asset management
VIG 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 selected investment portfolios 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.
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Green Bonds (in EUR mn) |
1,525 | 1,199 | 829 | 435 | 238 |
VIG has successfully issued its second sustainability bond
As part of its active capital management, VIG Holding successfully issued a Tier 2 sustainability bond with a volume of EUR 300 million in a challenging market environment. Following the first issuance of a sustainability bond in 2021, this is VIG’s second sustainable bond and the first in the Tier 2 format. The bond is intended to support social and green projects in the areas of renewable energy, green buildings and clean transportation, as well as social projects for more affordable housing and improved access to basic services such as education and healthcare.
Controlled investments
The issue is based on the revised VIG Sustainability Bond Framework, which was verified by the independent ESG rating agency Sustainalytics through a second-party opinion (SPO) and, for the first time, also includes an assessment of EU Taxonomy compliance.
The Sustainability Bond Committee, which was set up as part of the first sustainability bond, again ensures that the funds are used in accordance with the framework and are reported on accordingly. It consists of representatives from different areas of the Group, such as Group Treasury & Capital Management, Asset Management incl. Real Estate as well as Compliance.
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 Sustainability Programme is divided into six spheres of impact in which the Group-wide sustainability efforts have been aggregated
