Sustainability
Sustainability at the heart of our investments
Ethias makes a positive contribution to today's major societal and environmental challenges by going far beyond risk-return analysis in its investment decisions and integrating ESG criteria. Ethias is concerned about the potential impact of investments on the financing of the energy transition and the creation of a fairer society. This role as responsible investor comes with a long-term responsibility in life-insurance policies, particularly in the management of legal and supplementary pensions and in supporting the economy.
As the latest IPCC report shows, global warming caused by human activity is having serious consequences, such as rising sea levels and loss of biodiversity. Progress has been made in planning adaptation measures and mitigation policies, but they are not yet of sufficient scale or speed, and gaps remain. Immediate action to reduce greenhouse gas emissions and limit warming to 1.5°C is crucial to avoid irreversible negative effects.
Aware of the urgency to limit the impacts of climate change and to achieve a just transition by relying on strong governance, Ethias continued in 2023 its responsible investor approach launched in previous years adding with new initiatives:
- EUR 250 million invested in sustainable projects following the issue of a green bond
In 2023, Ethias issued a green bond that was a great success with investors. This green bond issue enabled Ethias to raise EUR 250 million, which will be invested in projects and activities with a positive impact on the environment. Ethias is proud to be one of the few Belgian companies to issue a green bond in 2023, demonstrating its commitment to sustainable investment and environmental protection.
- Development and publication of impact investment policy
In the wake of its support for the creation of the Impact Finance Belgium Institute, Ethias has developed the first version of its impact investment policy in collaboration with BE.Impact. This policy is now an important part of our sustainable and responsible investment framework. Impact investments are aimed at generating a positive social or environmental impact in addition to achieving a financial return. In this way, they go even further than the classic ESG approach, which integrates extra-financial criteria into the analysis and selection of investments to reduce long-term financial risks and contribute to a more sustainable world.
- Transparency around the concepts behind SFRD's article 8 classification of investment products
In the interests of transparency, the ESG integration policy and the definition of responsible investment, in line with SFDR regulations, have been published on the Ethias.be website. The first document provides a more detailed view of the means used by Ethias to integrate ESG criteria into its asset management. The second clarifies the criteria Ethias takes into account when considering an investment as responsible under SFDR regulations.
In 2023, Ethias also continued its efforts to encourage the companies in which it invests to adopt sustainable and responsible practices. The dialogue initiated by Ethias took concrete form during the assessment phases of investment opportunities and as part of the monitoring of existing investments.
Furthermore, in 2023, Ethias worked in partnership with other investors and stakeholders to help achieve a just transition, strengthening social cohesion and reducing inequalities. Ethias has supported initiatives to promote public health and well-being and preserve biodiversity. As a result, the company has continued to invest significant amounts in sustainable investment areas through a variety of approaches. These approaches mainly include pursuing the goal towards a carbon-free economy, green, social or sustainable bonds, sustainable real estate investments, investments in infrastructure contributing to social or environmental objectives, and impact investments.
In 2024, Ethias' main sustainability challenges will materialise through three main goals:
- Formalising and submitting the decarbonisation plan of the investment portfolio in line with the SBTi initiative
After joining BACA in 2021, Ethias has committed to SBTi in 2022. Ethias’ ambition is to obtain an independent approval (within a maximum of 2 years) for its plan including intermediate decarbonisation targets (based on recognised scientific methods) in order to achieve Net Zero in line with the objectives of the Paris Climate Agreement. Ethias aims to submit this plan for its climate change mitigation strategy by the end of 2024.
- Continued use of funds from the green bond issue
Ethias has invested almost all the funds raised in 2023, but will continue to deploy them in 2024 to finance concrete projects with a positive environmental impact. The specific areas on which Ethias will continue to focus are set out in the Green Bond financing framework .
- Deploying our impact investment policy in positive-impact projects
In 2024, Ethias wants to pursue this impact investing policy by investing in projects that have a positive impact on society and the environment. Its ambition is to become a leading Belgian player in the field of impact investing, while taking the time to carefully validate the alignment between investment opportunities and its vision, in order to guarantee investments that have a positive and measurable impact.
- Quarterly & annual reports
