Purely for Later.

We believe the Zwitserleven Gevoel (carefree Zwitserleven feeling) is inextricably linked to a just and beautiful world. This is something we want to contribute to, which is why corporate social responsibility is such an integral part of our entire organisation. Of course, all of us would like to have enough money to be able to retire comfortably, but we also want to live in a world where we can still enjoy our retirement and live a worthwhile life.

We were named the number one in responsible invest-ment for the fifth year running.Our responsible investment policy has not gone unnoticed. Zwitserleven has been voted ‘insurer with the most responsible investment policy’ for five consecutive years by the Dutch Associa-tion of Investors for Sustainable Deve-lopment (VBDO). We would class this as extremely responsible. We do not consider responsible investment to be something we do: it is actually a part of who we are. That’s why, in many ways, we are more thrilled to receive this accolade for the fifth time than we were the first time.

It is our firm belief that socially responsible investment actually yields better returns over the long term.

How does it work?As responsible investors, we have a meaningful impact. The pension contributions we receive add up to an impressive money flow, which we can mobilise to make a positive diffe-rence for people and planet. Together,

we can make the world even better: our members by entrusting their contributions to Zwitserleven; and Zwitserleven by adhering to a respon-sible investment policy.

Sustainable themes as a foundation. Sustainability is a broad concept that can be interpreted in many different ways. Zwitserleven has accordingly selected a few themes that are impor-tant as a starting point for the invest-ment beliefs of both Zwitserleven and ACTIAM, its asset manager. Those themes are climate, water and carbon emissions. Decisions about this responsible investment policy are taken at the highest level in the orga-nisation, i.e. by the Managing Board.

They are tabled at least three times a year. Specific targets have been formulated for ACTIAM for these themes, both as regards voting and conducting engagement dialogues. And of course, these themes are also applied as a basic principle for our investment funds and portfolio investments – because here, too, our aim is to be as responsible and sustainable as possible.

What benefits are there? The goal of our investment policy is to achieve both financial and social returns because we are convinced – and we demonstrate – that these go hand in hand.

Financial returns.Employees use the capital they have invested to buy a pension when they retire. So it’s important that the invest-ments generate an attractive return. It is our firm belief that responsible investment actually delivers better returns over the long term. This allows us to assure our clients that they will have a sufficient income to live on later.

Social returns.We want to use the assets we manage for our clients to make a difference. That means we want to offer solutions to social challenges. We do so by investing in socially responsible com-panies where we can. We apply strict selection criteria in the process, exclu-ding companies or engaging in dialo-gue with them to encourage them to act in a more socially responsible way. To illustrate: our investment policy has

led to lower carbon emissions, partly thanks to the exclusion of coal-mining companies from our investment uni-verse. But dialogue also bears fruit, as demonstrated by the study we carried out jointly with Utrecht Univer-sity. The companies that we have encouraged to do something about their carbon emissions have actually done so.

There is also good news on the health front; tobacco producers have been excluded from our investment uni-verse. After this exclusion, it was announced that the US regulator was only prepared to allow cigarettes with a non-addictive nicotine content. This had a positive impact, because it led to a fall in tobacco company share prices.

Recognition.Zwitserleven is the market leader in socially responsible investment. This is something for which we receive national and internati-onal recognition, and we’re very proud of that. But the most important thing is the weight that more and more clients are attaching to this aspect. That’s why an incre-asing number of employers are deli berately choosing a pension scheme from Zwitser-leven. That in turn enables us to invest more pension contributions sustainably, incre-asing our impact on the world.

ACTIAM.Our investments are administrated by our asset manager ACTIAM. Based on our instructions and requirements, ACTAM invests in sus-tainable funds that benefit people and planet. They also exert influence by encouraging the companies in which they invest to become more socially responsible, for example by engaging in active dialogue with them and voting at shareholders’ meetings. This engagement exem-plifies the way in which Zwitserleven and its asset manager ACTIAM seek to exert influence – influence that makes a difference.

ACTIAM recently received the presti-gious International Climate Award.

Progressive investment policy. Zwitserleven is regarded as a progressive brand when it comes to responsible invest-ment. An example is the clear information we produce about funds and products, and make available to everyone. We are trans-parent about our choices and their conse-quences. We look beyond our own organisa-tion and encourage the companies we invest in to make socially responsible choices too.

We engage in continuous dialogue with those companies and vote at their share-holders’ meetings. And of course, we also look at ourselves and how we as a business can make a difference. To name an example, we were one of the first insurers in the Netherlands to sign up to the United Nations Principles for Sustainable Insurance.

Responsible investment.

* Based on the Greenhouse Gas Equivalencies Calculator of the American Environmental Protection Agency 1 ton CO2 is equivalent to 2.174 miles. This has then been converted to kilometers. The outcomes may differ slightly from other calculations due to rounding off decimal figures.

In 2015, world leaders reached a historic agreement at the Climate Summit in Paris. Since then, both governments and the private sector have pledged to achieve measurable targets. Zwitserleven and its asset manager ACTIAM have done the same by using invest-

ments as a means of combating climate change. To testify to this, we have signed the Montreal Carbon Pledge and the Paris Pledge for Action. The Paris climate agreement has been added to the Fundamental Investment Principles as a guideline.

Carbon footprint of our investments.The results of all our efforts are already becoming clearly visible. We recalculated the carbon emissions of the funds in 2017. What did it show? All in all, we see a signifi-cant reduction in emissions compared with when we began. For the Zwitserleven Euro-

pees Aandelenfonds, for example, those emissions were already nearly 14% lower han in 2010. Note: the reduction in carbon emissions was also calculated in mileage clocked up by passenger vehicles. That puts the savings in the context of the real world.

Proof points: what have we done in recent years to combat climate change?• Exclusion of coal-mining companies: all companies that generate more than 15%

of their revenues from coal mining are excluded.

• Integration of the investment themes water and carbon emissions: companies operating in sectors that have a major impact on the climate or which use large quantities of water receive a lower sustainability score. This sustainability score is then used in the investment process; companies with a low score have less chance of being selected for investment.

• We engage in dialogue with more than 50 companies worldwide to discuss the energy transition. We encourage these companies to switch to renewable energy and to contribute to the Paris climate agreement.

• In 2017, we joined others in tabling three shareholder resolutions to oil and mining companies, requesting transparency regarding their lobbying activities and the organisations to which they are affiliated. Our aim is to prevent firms from lobbying against ambitious climate policies. We also submitted resolutions to financial institutions concerning their voting behaviour, with the aim of ensuring that they support resolutions in relation to climate change when voting at company shareholders’ meetings.

Climate change: one of the biggest challenges.Climate change is a challenge that will be with us for many decades to come, but for which the solution is in our hands today. Reducing greenhouse gas emissions now will have a great impact in the longer term.

-40%Our ambitions and how we are going to achieve them. Zwitserleven has set itself the goal of reducing the carbon emissions from all its investments by at least 25% in 2025, and by at least 40% by 2040 (reference year: 2010). We are aiming to achieve this by bringing to bear all the tools we have at our disposal as an investor. That means more than simply excluding the most carbon- intensive companies from our investment universe. We actually want to encourage companies to reduce their carbon emissions. One way of doing so is through active shareholdership, i.e. engaging in dialogue with the companies in which we invest and actively voting at their shareholders’ meetings.

Goal.By 2040, greenhouse gas emissions by all com-panies we invest in have been reduced:

We will select even more investments that contri-bute to reducing our emissions, for example wind and solar energy and water companies.

ESG Integration ExclusionsPositive selection Active ownership

During our discussions with directors of the companies in which we invest, we urge them to address greenhouse gas emissions.

At all shareholders’ meetings, we vote in favour of measures to counter global war-ming.

ESG Integration allows us to manage our equity and bond portfolios in a way that minimises greenhouse gas emissi-ons.

We have developed a model to help us do this.

Fossil fuels are incre-asingly becoming a thing of the past. Com-panies that are unable or unwilling to contri-bute to a renewable energy future will no longer have a place in our investment port-folio.

Fund Emissions by companies in portfolio (in tonnes of carbon equivalent

Emissions by relevant benchmarks (in tonnes of carbon equivalent)

Absolute carbon emissions correspond to a certain mileage clocked up in a passenger vehicle*

Zwitserleven Aandelenfonds (European equities)

6.987 12.621 -19.648.439

Zwitserleven Credits 70.939 77.992 -24.597.680

Zwitserleven Europees Aandelenfonds (European equities)

83.724 151.228 -235.419.331

Zwitserleven Geldmarktfonds (money markets) 792 N.A

Zwitserleven Government bond 10+ 1.213 N.A

Zwitserleven Horizonfonds 20+ 37.951 40.688 -9.543.268

Zwitserleven Horizonfonds 2020-2024 3.725 3.991 -924.626

Zwitserleven Horizonfonds 2025-2029 15.377 16.487 -3.871.981

Zwitserleven Horizonfonds 2030-2034 24.840 26.631 -6.246.274

Zwitserleven Horizonfonds 2035-2039 11.627 12.466 -2.923.743

Zwitserleven HorizonRentefonds 3.861 4.214 -1.228.990

Zwitserleven Institutioneel Credits (institutional credits)

16.919 18.917 -6.968.372

Zwitserleven Mixfonds 17.568 24.179 -23.053.747

Zwitserleven Obligatiefonds (bonds) 7.786 8.765 -3.413.980

Zwitserleven Vastgoedfonds (property) 671 669 7.623

Zwitserleven Wereldaandelen (global equities)

163.306 174.753 -39.922.217

Zwitserleven Selectie Fonds 16.897 16.897 34.291

Zwitserleven Long Duration Fonds 1.854 N.A

Zwitserleven Medium Duration Fonds 2.104 N.A

Zwitserleven Ultra Long Duration Fonds 1.172 N.A

Burgemeester Rijnderslaan 7, 1185 MD Amstelveen. Telefoon 020 - 347 84 78. zwitserleven.nl

Water footprint.ACTIAM has calculated the water footprint of its own active investment portfolio to measure the progress made on this objective.

Dennis van der Putten, Head of Responsible Investment at ACTIAM, says: “For us, measuring the water footprint of our portfolio is the first step in providing transparency on the impact investors have on one of the largest global problems. Transparency is crucial in ensuring water allocation becomes more fair and honest world-wide. At present, the water footprint measures water usage of companies we are currently investing in, but in a few years’ time water pollution will also be measured.”

“The measurement has shown that the water footprint of the companies included in ACTIAM’s current portfolio is 2.5 times lower than that of comparable funds. This is very gratifying as it confirms we made the right decisions in terms of the companies we invest in and in terms of our active ownership strategy. But to truly make a difference to the world, we need to get our water footprint down to zero.”

PensioenInzicht. Dutch people have a better understanding of their pension, thanks to PensioenInzicht. Pen-sioenInzicht contains informa-tion about the state pension, the Zwitserleven pension and any other pensions accrued through alternative insurers or pension funds.

PensioenInzicht provides an over-view of your total pension situa-tion in a clear, simple chart – it includes gross and net amounts. Please visit zwitserleven.nl/Pen-sioenInzicht (in Dutch) to explore the options.

Why green bonds?We invest in green bonds as a means of trying to ensure that the world is just as beautiful when we retire as it is today. Green bonds are bonds that yield social as well as financial returns.

What is a green bond?Green bonds make it possible to finance only responsible activities, without funding a business’s other operations. It is clear in advance what criteria the activities are required to meet in order to be eligible for funding with a green bond.

How it worksBusinesses and public authorities join forces and issue bond loans to fund their combined projects. They invest the money they raise in clean energy, clean water, employment opportunities and other green or socially responsible activities.

Our asset manager ACTIAM is very active on behalf of Zwitserleven on the green bond market. They carry out research to assess whether green bonds meet our criteria. In addition, they often speak at events about green bonds and how they can contribute to a more sustainable world.

Sustainable Investment Code.The Sustainable Investment Code came into effect on 1 January 2012. The aim of the Code, which was developed by the Dutch Association of Insurers, is to encourage sustainable investment by insurance com-panies. The Code also shows how sustain-ably insurers are currently investing. Because we believe that sustainable invest-ment is important, we are committed to ensuring that we meet all the conditions.

The Code in a nutshellThe Code is based on a number of princi-ples taken from the United Nations, such as

the UN Principles for Responsible Invest-ment (UNPRI), which are concerned with such issues as environmental, social and governance aspects. Companies must also demonstrably integrate these aspects in their investment policy and decisions. The Code also endorses the UN Global Compact, a set of ten principles on human rights, labour rights, the environment and anti-corruption. Finally, the Code contains a separate article prohibiting investment in arms.

Not only do we endorse the Code, we also meet all the conditions. In addition, we encourage our asset manager ACTIAM to invest responsibly.

Reporting.We report on the implementation of our responsible investment policy. In order to preserve confidentiality, we do not report on companies with which we are in dialo-gue about a possible investment by Zwitserleven. Once the discussions are complete, however, we do report on which companies we have been in dialogue with and what the outcomes were.

The reports are available on zwitserleven.nl.

Green bonds: what and why?

Zwitserleven invests in French wind farm. A good example of a green bond project that was financed by Zwitserleven is the wind farm in Perpignan, France. The elec-tricity producer raised a total of ¤ 1.4 billion through the bond issue. All of that money has now been spent on wind farms, solar parks and a biogas project.

A special feature of the wind turbine design in this project is that the turbines are virtually invisible to radar systems, which means they do not cause disruption to radar images. So this is a project that is not only green, but also innovative.

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