The S in ESG: Gertjan Medendorp (Aegon AM)

The S in ESG: Gertjan Medendorp (Aegon AM)

August 28, 2023

S van ESG ESG
Gertjan Medendorp (foto archief Cardano) 980x600.jpg

This article was written in Dutch. This article is an English translation.

By Gertjan Medendorp, Senior Investment Strategist & MVB-specialist at Aegon Asset Management

How do you interpret the S of ESG?

'Our clients find it increasingly important that their investment policy contributes to a better world. We therefore advise them to minimize the negative effects on social themes, such as human rights violations, in their investment portfolio. We periodically screen all companies in our portfolios. This allows us to identify potential or actual violations of international norms and standards. We enter into discussions with these identified companies to limit or resolve abuses.'

How does the S relate to the E and G within the investment portfolio?

'The S has been important for norm-driven engagement for some time now, we see the E mainly in strategic asset allocation and the G forms an important precondition. However, we are also seeing more and more examples where the S is reflected in the investment portfolio in a different way.

Within the government bond portfolios, for example, we consider the S to be important when advising on country policy. We consider the risk of prejudice to be particularly high with regard to human rights. We try to avoid holding investments in the portfolio that are morally reprehensible because they are associated with, for example, corruption and restrictions on civil liberties and political rights. In addition, social bonds are potentially an interesting alternative for investors who want to make a positive contribution by financing projects with a social impact.'

 

Social bonds are potentially an interesting alternative.

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