Our approach to CR

AEGON’s approach to issues of corporate responsibility (CR)mirrors the Group’s overall operating structure. At Group level, AEGON sets out a number of basic principles, providing a framework for strategies that are carried out generally by individual country units.

In line with this approach, country and business units are encouraged to focus on issues specific to their local situations. This helps ensure that AEGON’s common principles become an integral part of the Group’s business activities, wherever those activities are located.

• AEGON endeavors to provide products and services that are transparent and easy to understand, helping customers secure their long-term financial futures;
• AEGON acts as a responsible employer, providing the conditions, incentives and formal training its employees require for personal success;
• AEGON takes measures to help reduce the impact of its business operations on the environment, seeking to limit energy use and curb unnecessary waste;
• AEGON recognizes its position as one of the world’s leading investors and strives to ensure that its investment decisions take into account not only the need for profit but also the interests of all legitimate stakeholders and the wider communities in which the Group operates;
• AEGON endeavors always to provide clear, accurate, timely and transparent information so that investors, customers and other stakeholders can make the right financial decisions for themselves and their families.

The scope of this report

Over recent months, AEGON has taken further steps to improve the quality of information contained in this Corporate Responsibility Report. The launch of a new online system in early 2008 has helped strengthen the internal data gathering and verification process. In addition, for this year’s report, the Group’s operations in both China and India have been included for the first time. Data from the Group’s country units in Europe, the Americas and Asia have also been extended to cover more of AEGON’s workforce than in previous years. Unless otherwise stated, all information contained in this report refers to 100% of AEGON’s global workforce. For further information, please refer to Appendix I. at the back of this report.

AEGON’s objectives for 2008

• AEGON will launch a global Employee Satisfaction survey as part of efforts to improve the working environment for all the Group’s 30,000 staff worldwide;
• During 2008 a decision will be taken on whether or not to hire auditors to carry out an external audit of the information contained in the Group’s annual Corporate Responsibility Report over 2008 and following years;
• AEGON will further expand its employee education and training programs by introducing a new e-learning course on Insider Dealing.

Progress report 2007

How is AEGON doing with the commitments it made at the beginning of 2007?

Commitment	Progress so far
Set out Group-wide principles on exercising voting rights related to shares AEGON owns in other companies.	AEGON has now adopted new Group-wide voting policy principles in line with the company’s Code of Conduct.
Establish Group-wide corporate responsibility standards for suppliers in all major procurement centers.	Proposals for Group-wide corporate responsibility standards for suppliers have now been drafted. Final standards are expected to be established during the course of 2008.
Examine the possibility of a new globally coordinated action plan to reduce energy consumption.	AEGON has started to examine the feasibility of a Group-wide action plan to reduce energy consumption. Initial discussions have taken place between AEGON country units, but no final decision has yet been taken.
Invest in streamlining and enhancing corporate responsibility information gathering and reporting.	AEGON has launched a new, online data gathering system to help collate and measure CR data from its coutry units.
Investigate possible membership of business networks to exchange views on CR issues.	AEGON has become a full member of the Global Reporting Initiative, an international organization aimed at setting standards to measure companies’ economic, social and environmental performance.
Begin work on a trackable, baseline index to measure overall rates of customer satisfaction for AEGON companies worldwide	Work has begun on a Group-wide customer satisfaction index based on indices currently compiled by AEGON companies around the world.

How AEGON ranked in 2007

Rating agency	2007	2006
Dow Jones Sustainability Index	Included	Included
FTSE4Good	Included	Included
Oekom	C (prime)	C (prime)
SiRi 1	8th	15th
Compared with 82 leading listed insurance companies around the world. In SiRi’s latest research, carried out by Dutch Sustainability Research (SiRi’s partner in the Netherlands), AEGON achieved an overall sustainability score of 66.7, 29% above the industry average of 51.7. Using a stakeholder methodology, SiRI assesses how companies perform on a range of different sustainability themes, including corporate governance and business ethics, as well as the company’s approach to its customers, employees and the environment. Any involvement in controversial products, services and business activities is also taken into consideration.

AEGON has been included in the Dow Jones Sustainability Index (DJSI) for the past eight years. The DJSI includes only those companies ranked in the top 10% for corporate sustainability purposes. The rating is based on independent research carried out by SAM, an asset management company specializing in sustainable investments. In 2007, AEGON received a Silver Class ranking in recognition of its work in the field of corporate responsibility.

AEGON was again included in the FTSE4Good index in 2007. This index measures the performance of leading companies against recognized corporate responsibility standards. FTSE4Good works closely with EIRIS – the Ethical Investment Research Service.

Based in Munich, Oekom Research AG is an independent rating agency, providing in-depth information and analysis of companies’ environmental and social performance. Oekom currently rates AEGON as ‘C Prime’, unchanged from last year. According to Oekom’s own estimate, ‘C Prime’ equates to ‘Medium’. Oekom’s ‘Social Rating’ for AEGON is C+, while its ‘Environmental Rating’ is C-.

SiRi – the Sustainability Investment Research International Company – has been comparing the corporate responsibility performances of Dutch-listed companies to their international peers for the past eight years. SiRi comprises eleven specialist Socially Responsible Investment research organizations based in Europe, North America and Australia, covering more than 2,100 listed companies. SiRi provides independent research to institutional investors and other financial professionals.

AEGON’s statement of principles As a global company, AEGON has global responsibilities. We believe that business success is not incompatible with a respect for the environment, human rights and the broader communities in which we operate. Indeed, we recognize that creating a sustainable business means taking into account the interests of all our stakeholders – customers, employees, business partners and shareholders. We also believe we can make a valuable contribution to the communities in which we operate not only as a provider of long-term financial products and services, but also as a responsible employer and investor. We will pursue our objectives through sound business principles based on our core values of Respect, Quality, Transparency and Trust.