Inclusion, the second cornerstone of our strategy, focuses on thematic investments as an ideal way to tackle specific sustainability topics. We mainly target investments that contribute to a low-carbon economy and facilitate the mitigation of climate change. An effective way to do this is by investing in infrastructure renewables and green bonds. Infrastructure is an attractive asset class for our investment portfolio given its credit quality and inherent liquidity premium. Our infrastructure investments are assessed against a catalogue of ESG parameters to evaluate the underlying sustainability risk. For our green bonds we use the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA) as guiding principles for our investments. To further expand our thematic investments, we also include social and sustainability bonds in our allocation, investing in bonds whose use of proceeds helps tackle the challenges faced by underserved groups or populations. This enables us to embrace positive social impacts as an additional thematic focus. For social bonds we use the Social Bond Principles (SBP) and for sustainability bonds the Sustainability Bond Guidelines (SBG) issued by the ICMA as guiding principles for our investments.
A significant proportion of our infrastructure investments is allocated to renewables, such as wind and solar energy, as well as to social infrastructure, such as hospitals, student dorms or affordable housing projects.
For more specific information regarding our green real estate investments, please see our Climate action section.
With the objective to achieve a better and more sustainable future for all, the United Nations has adopted the Sustainable Development Goals (SDGs) in 2015. The SDGs, a collection of 17 goals, are a rising investment theme, especially since financing these is key to their successful achievement.
We measure our real-world impact and align it to the SDGs, mainly focusing on the five SDGs shown in the graph. We aim to generate both attractive financial returns and a positive social or environmental impact that is linked to at least one of the SDGs. To measure the real-world impact, we have implemented a standardised framework, which helps us to identify and to analyse our SDGs-aligned investments. Please go to our KPI tab for an overview of our SDGs-linked impact investments and metrics.