Metrics and targets

Disclosure Requirement E1-4 – Targets related to climate change mitigation and adaptation

The following section details VIG’s targets related to climate change mitigation and adaptation. In line with the selected climate scenario and the guiding principles mentioned above, emission reduction targets have been set in close cooperation with the relevant departments of VIG Holding. In addition, VIG insurance companies have developed sustainability programmes that form the basis for future emission reductions. This ensured that relevant stakeholders were involved in setting the targets and ensuring their achievability.

As a first milestone, VIG has defined concrete targets for reducing greenhouse gas emissions by 2030. Setting milestones is not only a legal requirement, but also a business necessity to lay the foundation for a successful transition to a sustainable future and ensure controllability. VIG’s milestones were formulated against the background of proper business conduct based on the two guiding principles of materiality and controllability. The initial focus is on the key parts of the VIG portfolio, which are presented in chapter ESRS E1-1 “Transition plan for climate change mitigation”. The actions that can be deployed to effectively and deliberately reduce emissions in a particular portfolio, among other things, are also being evaluated.

To ensure a solid basis for the target and to build the transition plan for climate change mitigation on the most reliable data quality, 2023 was set as the base year. In addition, the law stipulates that the base year must not be more than three years before the first reporting year. Further information on the approach to target setting and the selected climate scenario is presented in detail in chapter ESRS E1-1 “Transition plan for climate change mitigation”.

Targets by 2030

As explained in chapter ESRS E1-1 “Transition plan for climate change mitigation”, a reduction of VIG’s emissions across the spheres of impact already mentioned (excluding the real estate portfolio) by just under 30% by 2030 is necessary to ensure implementation of the net-zero scenario by 2050. The reference target values for the selected portfolios resulting from this reduction target are shown in the table below in tonnes of CO₂ equivalent (CO₂e, taking into account all Kyoto gases including NF3). The emissions categorised under Scope 3.15 for the portfolios considered in the transition plan for climate change mitigation from the spheres of impact of underwriting (corporate) and asset management (corporate bonds and equities and other non-fixed-interest securities) as well as the Scope 1–3 emissions from VIG’s internal operations for the base year (2023) were used as the baseline data.

As can be seen from the table above, a reduction of 194,442 tonnes of CO₂e in emissions (starting from the base year) is required for the corporate underwriting business in relation to Scope 3.15 in order to achieve the reference target value of 485,663 tonnes of CO₂e. Compared to the base year, emissions in the corporate underwriting portfolio increased by 9,957 tCO₂e (1.5%) in the reporting year due to a significant improvement in data quality. For the asset management (corporate bonds and equities and other non-fixed-interest securities) portfolio, around 350,000 tonnes of CO₂e must be saved, in relation to financed emissions, starting from the base year, in order to achieve the reference target value of 869,874 tonnes of CO₂e for this portfolio by 2030. In the reporting year, 518,582 tonnes of CO₂e (-42.6%) were saved compared to the base year, which means that the target of reducing emissions by around 30% by 2030 has already been met. However, since the portfolio allocation or volume may still change in subsequent years, the decarbonisation pathway defined in the transition plan for climate change mitigation will continue to be consistently pursued in order to secure the achievement of the emission reduction target in the long term. In VIG’s internal operations, market-based Scope 1–3 emissions need to be reduced by 11,039 tonnes of CO₂e by 2030. In the reporting year, a reduction of 5,196 tonnes of CO₂e (-13.7%) in market-based emissions was already achieved compared to the base year.

In line with the CRREM scenario, a target based on emission intensity (kg CO₂e/m²) was selected for VIG’s real estate portfolio. Starting from the base year 2023, a reduction of around 55% would be required to align with a 1.5-degree-compliant reduction path by 2030. Based on a feasibility study, taking into account criteria such as data availability, controllability and materiality, VIG has set a reduction target of 30% by 2030.

The above table shows the emission intensity of VIG’s real estate portfolio in the base year 2023 and the target value for 2030. To achieve the defined target, the emission intensity must be reduced by 12.0 kg CO₂e/m². In the reporting year, the emission intensity was reduced by 3.8 kg CO₂e/m² compared to the base year.

VIG’s aim is to drive forwards a 1.5-degree-compliant reduction in emissions, particularly in those portfolios that represent the greatest leverage for VIG. Since the entire real estate portfolio in the base year 2023 only accounts for around 1% of VIG’s total Scope 3 emissions, the focus is on the prioritised portfolios.

Nevertheless, VIG wants to make an active contribution to climate change mitigation in the building sector and, with this target, is therefore setting a concrete reduction target for the real estate portfolio, to be achieved by 2030, for the first time.

Details of the identified decarbonisation levers and actions for each sphere of impact, which were defined in the course of setting the reduction targets, are described in chapter ESRS E1-3 “Actions and resources in relation to climate change policies”. It is not yet possible to present the quantitative impacts and total contributions to decarbonisation of the individual actions in the reporting year. VIG aims to implement this step by step in the coming years.

Non-target-related portfolios in VIG’s transition plan for climate change mitigation

The portfolios presented in the previous section are those linked to science-based methods in line with VIG’s transition plan for climate change mitigation. The VIG portfolio also includes other areas that are actively monitored, but for which no science-based targets have been set due to limited direct control options.

Underwriting

For the underwriting portfolio of retail customers, which, for the purposes of reporting, is limited to the emissions of motor vehicle insurance policies, no science-based targets have been set for the time being, despite the portfolio’s significance, because the possibility of effectively tracking and controlling such targets is very low. This is partly due to the fact that the insurable “vehicle fleet” in a country is determined by the purchasing preferences of consumers and can therefore only be changed by regulatory or (fiscal) policy measures. With motor vehicle insurance playing a significant role in national economies by providing coverage for strict liability and motor vehicle insurance generally being mandatory at a national level when a vehicle is registered, along with an insurance acceptance obligation in some cases, withdrawing from this insurance segment is not an option for VIG. Despite the lack of a “hard” target, VIG is still endeavouring to reduce emissions through selected activities. Some companies use telematics apps that link certain driving parameters (acceleration, braking etc.) with premium discounts. VIG emissions generated by the motor portfolio are in any case continuously recorded and are reported in chapter ESRS E1-6 “Gross Scopes 1, 2, 3 and Total GHG emissions” as part of the financed emissions (Scope 3.15).

Asset management

In asset management, VIG has not set a science-based target for the government bond portfolio as part of the transition plan for climate change mitigation. Although the resulting greenhouse gas emissions are significant and this portfolio accounts for around 30% of VIG’s total investments in the base year of the transition plan for climate change mitigation as of 31 December 2023 (base year), VIG has only limited leeway to reduce them. The reason for this is that regulatory requirements in various jurisdictions prescribe investments in government bonds. Furthermore, the need to avoid currency gaps significantly limits the choice. In addition, VIG believes that not investing in government bonds is undesirable for economic reasons. Despite these limitations, a reference target was derived as a guide and the emissions of the government bond portfolio are monitored continuously. In addition, the emissions from the government bond portfolio are disclosed in chapter ESRS E1-6 “Gross Scopes 1, 2, 3 and Total GHG emissions” under the financed emissions. Greenhouse gas emissions in EU countries are generally expected to decrease by 2030 and beyond, given the commitments made by the states to contribute to the achievement of climate targets.

Furthermore, investments of unit- and index-linked life insurance were not included in the development of the reduction targets due to a lack of direct control options for VIG in the portfolio (the decision to invest lies with the customers).

Differences in the presentation of emissions between the transition plan for climate change mitigation and the disclosed greenhouse gas emissions

The presentation of emissions in the transition plan for climate change mitigation differs in some respects from the disclosed greenhouse gas emissions, as different portfolios, companies and/or emission scopes (e.g. Scope 3) are taken into account in some cases. More emissions are therefore reported in chapter ESRS E1-6 “Gross Scope 1, 2, 3 and Total GHG emissions”. However, it is ensured that all emissions reported in the transition plan for climate change mitigation are also fully included in the disclosure of VIG’s emissions. The differences in the database for the individual spheres of impact are explained in more detail below.

• For underwriting (corporate), the same emissions are recorded and reported in both the transition plan for climate change mitigation and the greenhouse gas balance sheet (GHG balance sheet).

• While emissions in underwriting (retail) are calculated and monitored in the transition plan for climate change mitigation, these emissions are currently not included in the target due to the limited possibility of effective target tracking and control. However, the GHG balance sheet shows emissions from the motor portfolio from this sphere of impact.

• In the transition plan for climate change mitigation, asset management generally includes the portfolio of corporate bonds, equities and other non-fixed-interest securities as well as the real estate portfolio. A major difference in the presentation of emissions from the portfolio of corporate bonds, equities and other non-fixed-interest securities is that the transition plan and the associated climate target take into account the Scope 1 and 2 emissions of the investee companies, while the GHG balance sheet also includes the Scope 3 emissions. The real estate portfolio included in the transition plan for climate change mitigation in the reporting year covers 65% of the investment volume due to limited control options and, in some cases, low data quality. VIG aims to improve data quality in the coming years. The GHG balance sheet includes the emissions of the Group’s entire real estate portfolio. In addition to the emissions included in the transition plan for climate change mitigation, the emissions disclosed in ESRS E1-6 “Gross Scopes 1, 2, 3 and Total GHG emissions” also include all emissions from government bonds as well as Scope 3 emissions. The disclosed emissions also include the emissions from investments of unit- and index-linked life insurance contracts and from non-consolidated participations. Due to the low level of investment in this asset class, however, non-consolidated investments are not included in this transition plan for climate change mitigation. Furthermore, there is currently no intention to include these in the transition plan for climate change mitigation next year. Although investments of unit- and index-linked life insurance are part of the consolidated balance sheet, the investment decision and the investment risk lie with the customer. However, VIG insurance companies offering unit-linked and index-linked insurance products will enable low-carbon unit-linked and index-linked alternatives for both new business and existing contracts (reallocation).

• In VIG’s internal operations, the presentation of emissions in the transition plan for climate change mitigation and the GHG balance sheet differs only in terms of the companies included. The transition plan for climate change mitigation includes all fully consolidated insurance companies (excluding Ukraine) as well as some non-insurance companies such as pension funds, asset management and assistance and service companies that are essential for the insurance business. All insurance companies included in the IFRS scope of consolidation (except for the three Ukrainian companies) were included in the disclosure of emissions in accordance with ESRS E1-6 “Gross Scopes 1, 2, 3 and Total GHG emissions”.

Disclosure Requirement E1-5 – Energy consumption and mix

The following table shows VIG’s energy consumption from internal operations. As an insurance service provider, VIG is not assigned to any high climate impact sector based on its business activities. The high climate impact sector disclosure requirements set out by the ESRS therefore do not apply in this report.

Total fossil energy consumption fell by 3.8% compared to the previous year. Energy consumption from nuclear sources fell by 19.7% compared to the base year. At the same time, total renewable energy consumption increased by 29.5% compared to 2024. The total energy consumption decreased slightly compared to the previous year (-0.4%).

Disclosure Requirement E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions

The following table shows VIG’s greenhouse gas emissions by Scope 1, 2 and 3 in accordance with the Greenhouse Gas (GHG) Protocol in CO₂ equivalents (taking into account all Kyoto gases, including NF3). The table includes emissions generated directly by the Company (from heating energy requirements, coolants and fuel consumption = Scope 1) and the emissions caused indirectly by the Company (from electricity, district cooling and district heating consumption = Scope 2). In addition, the emissions caused by employee business flights (= Scope 3, category 6) and the financed emissions (= Scope 3, category 15) in the areas of asset management (including real estate) and underwriting (corporate and retail) are shown. The emissions of those companies in which VIG holds an interest (at equity companies) are also reported in Scope 3 (category 15). The databases of the International Energy Agency (IEA), the Austrian Environment Agency, the Department for Environment, Food and Rural Affairs (DEFRA), the German Association of the Automotive Industry (VDA) and ecoinvent were used to calculate greenhouse gas emissions from internal operations. The methodology follows the guidelines of the GHG Protocol to ensure consistent and transparent emissions calculations. Information on the methodology and databases used to calculate the financed emissions (Scope 3.15) is provided in the corresponding subsections on calculating the financed emissions.

The energy metrics used as the basis for calculating the CO₂e emissions for VIG’s internal operations were reported by the individual VIG companies included in the scope of consolidation as of the reporting date of 31 December 2025, with a projection approach used for missing data. Likewise, the financed emissions from the asset management portfolio include the values as of 31 December 2025. Due to data availability, the financed emissions from the real estate portfolio are shown with a reporting date of 30 June 2025. Despite this offset period, the calculation of the emissions data in the real estate portfolio is based on full-year values. Past experience has shown that the real estate portfolio as a whole is relatively constant over the course of the year due to the long-term orientation. The reporting date of 31 October 2025 was used for the reporting of emissions from the underwriting portfolio (corporate and retail). However, the early reporting date has no material impact on the disclosure of the emissions data. In addition, the estimates made in calculating the emissions data are discussed in detail in chapter ESRS 2 BP-2 “Disclosures in relation to specific circumstances”.

Gross Scope 1 GHG emissions

Scope 1 includes direct greenhouse gas emissions. These come from the combustion of fossil fuels in company-owned or controlled facilities (including on-site heating systems) and the refill volume of refrigerants for air conditioning systems in the reporting year. In addition, the fuel consumption of the vehicle fleet was recorded. This refers to the petrol, diesel or biofuel consumption of company-owned or leased vehicles.

Gross Scope 2 GHG emissions

The emissions recorded under Scope 2 represent the greenhouse gas emissions resulting from the generation of purchased energy. VIG reports the Scope 2 emissions for 2025 using both the location-based and market-based approach according to the GHG Protocol. With the location-based approach, emissions are calculated based on the average emission factors of the regional energy supply, i.e. the local electricity and heating network. The market-based approach, on the other hand, takes into account the specific greenhouse gas emissions of the energy actually procured. The emission factors of the International Energy Agency (IEA) were used to calculate the Scope 2 emissions from electricity, which include the emissions of carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂O).

Gross Scope 3 GHG emissions

The greenhouse gas emissions recorded under Scope 3 are generated indirectly along the upstream and downstream value chain of a company. They result from activities initiated by the company, but originating from sources that are neither owned nor controlled by the company. Scope 3 emissions can be divided into 15 different categories.

VIG has carried out a significance analysis in accordance with the requirements of the ESRS. This analysis was used to evaluate which categories of Scope 3 emissions are relevant for VIG and must therefore be recorded and reported. The ESRS do not provide a detailed approach for conducting such an analysis, but they do refer to the GHG Protocol, which states that the undertaking’s ability to influence emissions and the share of total Scope 3 emissions in the respective category are appropriate criteria for assessing relevance. For the significance analysis conducted, the emissions and consumption data of the VIG insurance companies that were already included in the scope of the report in 2023 were used. Additional data sources such as information on train journeys or waste generation were also included in the analysis, where available. The results were then extrapolated to the scope of the fully consolidated companies. This extrapolation was based on the number of employees (in tonnes of CO₂e per employee per category multiplied by the total number of employees). The analysis was updated in the reporting year based on the previous year’s results, the employee data reported for 2024 and the available consumption data.

The share of each respective category in the total Scope 3 emissions, as well as the extent to which they can be influenced and their industry relevance, were used as criteria to identify the relevant Scope 3 categories. According to the GHG Protocol, the degree of influence corresponds to the undertaking’s potential to reasonably reduce emissions from the respective Scope 3 category. With regard to industry relevance, the GHG Protocol refers to sector-specific guidelines, which are not yet available for the financial industry. For this reason, an industry comparison based on the consolidated sustainability reporting of the Scope 3 emissions of six insurance companies was carried out to assess industry relevance.

The results of the updated significance analysis confirm that the Scope 3.15 emissions (financed emissions) are classified as relevant and are therefore reported in the consolidated non-financial report. The financed emissions represent emissions from the Company’s investment and underwriting portfolio and account for around 99% of total Scope 3 emissions in the reporting year. Although the share of Scope 3.6 emissions from air travel in VIG’s total Scope 3 emissions is less than one percent, greenhouse gas emissions are reported as in the past due to the assumed relevance for certain stakeholders.

As in the previous year, the remaining categories of Scope 3 emissions were not classified as material:

• Category 1 “Purchased goods and services” is not relevant, since the products purchased by VIG, as a service provider, are primarily limited to paper products and the resulting emissions are negligible. In addition, certain IT products were included in the emissions calculation, although this has not changed the relevance of this category.

• Emissions in category 2 “Capital goods” are negligible, since the capital goods purchased by VIG are limited to office infrastructure (IT and furniture) and company vehicles.

• Category 3 “Fuel and energy-related activities” is not material for VIG as a non-manufacturing company. The upstream emissions from energy and fuel consumption are low and account for less than one percent of total Scope 3 emissions.

• As a financial company without significant transport and logistics activities, categories 4 and 9 “Transportation and distribution (upstream and downstream)” are not material for VIG.

• Category 5 “Waste” covers those emissions that arise from the disposal and treatment of waste by third parties. As a non-manufacturing company, only household waste with low greenhouse gas emissions is generated in the office buildings of VIG.

• Emissions from category 7 “Employee commuting” were calculated on the basis of data from Statistics Austria and a study by the Austrian Automobile, Motorcycle and Touring Club (Österreichischer Automobil-, Motorrad- und Touring Club – ÖAMTC) and the Vienna University of Technology (see “Was bewegt Österreichs Pendler zum Umsteigen?” [What motivates Austria’s commuters to switch mode of transport?] dated 30 March 2021). The results of these calculations show that the share of emissions is less than one percent of total Scope 3 emissions and the category is therefore not material for VIG.

• With regard to category 8 “Upstream leased assets”, the emissions resulting from rented office space are already included in the Scope 1 and Scope 2 emissions. The emissions of the VIG real estate portfolio are included in Scope 3.15 “Financed emissions” in the reporting year.

• Category 9: See category 4

• Category 10 “Processing of sold products” is also not material for VIG as a service company, which is also confirmed by the industry comparison.

• Categories 11 “Use of sold products” and 12 “End-of-life treatment of sold products” are not applicable, since VIG does not sell products, but services. Emissions resulting from the sale of insurance products (“insurance-associated emissions”) are reported in category 15.

• Category 12: See category 11

• Category 13 “Downstream leased assets” is not applicable to VIG in the reporting year, as emissions from real estate owned by VIG and rented to third parties are recorded in category 15 under the “real estate” asset class.

• Scope 14 “Franchises” is not material, as VIG does not undertake any franchise activities.

Calculation of financed emissions in underwriting (corporate)

Emissions in corporate underwriting are calculated on the basis of the PCAF (Partnership for Carbon Accounting Financials) “economic-activity based emission estimation” approach (PCAF Standard, Part C, Version 1, November 2022), as described in detail in chapter ESRS 2 BP-2 “Disclosures in relation to specific circumstances”. The estimates of emissions in this area are also presented in chapter ESRS 2 BP-2 “Disclosures in relation to specific circumstances”.

Calculation of financed emissions in underwriting (retail)

The financed emissions from retail underwriting include the emissions from VIG’s motor portfolio. The area of building insurance is excluded in the reporting year because no PCAF standard was available at the time of reporting for the emissions calculation. Please refer to chapter ESRS 2 BP-2 “Disclosures in relation to specific circumstances” for information on the estimates made for emissions from the motor portfolio.

Calculation of financed emissions of corporate bonds and equities and other non-fixed-interest securities and government bonds

A financial software solution is used to calculate the financed emissions in the investment portfolio, which enables the integrated processing of portfolio management and risk management data. The calculation logic for financed emissions from corporate bonds and equities and other non-fixed-interest securities follows that of PCAF (Part A, Version 2, December 2022). The emissions data are obtained from a specialist financial service provider and updated regularly. The financed emissions of corporate bonds and equities and other non-fixed-interest securities are calculated on the basis of EVIC (Enterprise Value Including Cash) and the corporate emissions. Where emissions data were not available, the existing emissions data were used and scaled up accordingly for each asset class. In the area of government bonds, the financed emissions are also calculated in accordance with the PCAF standard; data from a financial service provider’s database are also used here. For further details regarding estimates in the area of asset management, please refer to chapter ESRS 2 BP-2 “Disclosures in relation to specific circumstances”.

Calculation of financed emissions in the real estate portfolio

The whole building approach according to the PCAF standard is used to calculate emissions from VIG’s real estate investments. With this approach, the total Scope 1 and 2 emissions are considered for each building in the portfolio. A software solution is used to collect the data needed to calculate real estate-related emissions. This allows each VIG real estate investment to be displayed in detail and assigned its own identification number. The data must be transmitted periodically by the holding companies and are consolidated at VIG Holding level. Data from the energy performance certificates and the respective floor areas and volumes of the properties (to check the plausibility of the inputs from the energy performance certificates) are particularly relevant for the calculation of the financed emissions from the real estate portfolio. Emissions from real estate investments for which no data were provided were extrapolated using approximations from an external specialised financial service provider for NACE code 68.2 (Renting and operating of own or leased real estate).

In some cases, properties are used by the company itself. In these cases, it was necessary to distinguish the emissions of the properties used for own use (electricity consumption, heat and cooling from Scope 1 and 2) from those of the properties used by third parties (Scope 3.15) or to deduct them in Scope 3.15.

With regard to the estimates made, reference is made to chapter ESRS 2 BP-2 “Disclosures in relation to specific circumstances”.

Total VIG Scope 3 emissions are calculated based on a combination of available activity data. In VIG’s internal operations, emissions from air travel were partly calculated on the basis of primary data using the exact flight kilometres reported by the companies. The percentage of primary data used to calculate emissions in internal operations in the reporting year is 54.5% (2024: 33.0%). The emissions data in underwriting (corporate and retail) were calculated entirely on the basis of secondary data.

In asset management, the emissions were calculated largely based on data from an external database provider, which also contains estimates. For this reason, the share of emissions calculated with the aid of the external database provider cannot be referred to as primary data. A PCAF score is available for 50.6% of the total investment volume. Within this share, around 69% of the Scope 1 and Scope 2 emissions have high data quality (PCAF score 1 – externally validated data), while around 24% have a PCAF score of 2 (data reported by issuers). For Scope 3 emissions, around 86% are assigned a PCAF score of 2. The remaining emissions within the assessed investment volume are classified as PCAF score 4 (estimates based on industry averages).

For around 5.3% of the emissions data for VIG’s real estate portfolio (2024: 4.9%), it was possible to refer to primary data.

The following table provides an overview of the greenhouse gas emissions calculated in the reporting year, categorised by scope. In addition, the emissions of the base year (2023) and the previous year (2024) as well as the percentage change compared to 2024 are shown. As already described in chapter ESRS E1-4 “Targets related to climate change mitigation and adaptation”, the scope of emissions for individual portfolios included in the transition plan for climate change mitigation differs from the presentation of emissions in the table below. The milestones and the measurement of progress in terms of emissions in accordance with the transition plan for climate change mitigation are therefore shown in a separate table below the following table.

As can be seen in the table, gross Scope 1 GHG emissions increased slightly by 0.4% compared to the previous year. This development is mainly due to an improvement in data quality.

Gross Scope 2 GHG emissions (location-based) decreased by 12.9% year on year. Reasons for this include the fact that the heating energy consumption of individual companies was not correctly allocated in 2024 and was erroneously recorded as district heating (Scope 2) instead of direct emissions from stationary combustion installations (Scope 1), as well as reduced overall consumption of fossil energy sources. Gross Scope 2 GHG emissions (market-based) decreased by 21.4% in the reporting year. In particular, this development reflects the increased procurement of electricity from renewable energy sources, which is explicitly taken into account in the market-related methodology and thus reflects the progress made in the field of sustainable energy supply. With regard to gross Scope 3 GHG emissions from air travel (Scope 3.6), an increase of 40.0% was recorded due to increased travel activity. Overall, location-based Scope 1–3 emissions have reduced by 5.2% in internal operations, while market-based Scope 1–3 emissions have reduced by around 8.5%.

Underwriting (Corporate) saw a 5.4% increase in insurance-associated emissions compared to the previous year. This increase is mainly due to a significant improvement in the data quality of the calculated emissions, as NACE codes were available for significantly more contracts than in the previous year.

In underwriting (retail), emissions in the motor portfolio fell by 3.0%, partly due to improved data quality, even though the vehicles included in the calculation that have motor third party liability insurance (in accordance with the PCAF standard) have increased by around 3.5% compared to the previous year.

In asset management, there was a slight reduction of 2.5% in emissions from corporate bonds and equities and other non-fixed-interest securities compared to the previous year. This reduction is mainly due to changes in the portfolio and the underlying emissions data of the investee companies. Government bond emissions increased by 1.6% compared to the previous year. Although the reported emissions of the issuers have fallen, the absolute emission values have increased slightly due to the increased investment volume. Emissions from the real estate portfolio decreased by 5.7% compared to the previous year. Despite the portfolio growing, the emission intensity has also fallen slightly. The substantially improved data quality is also a positive development. As a result, the proportion of calculated emissions has increased significantly while the estimated emissions have been significantly reduced.

Overall, a slight reduction of 1.6% in total greenhouse gas emissions (both location-based and market-based) was recorded compared to the previous year. Over the coming years, there is expected to be a further reduction in greenhouse gas emissions as a result of the targeted actions in the transition plan for climate change mitigation and additional future initiatives.

The following table shows the portfolios selected as part of the transition plan for climate change mitigation and their emissions in the base year (2023), the previous year (2024) and the reporting year of 2025. In addition, the milestones for 2030 in accordance with the transition plan for climate change mitigation and the current progress towards achieving them are presented.

As already described in chapter ESRS E1-4 “Targets related to climate change mitigation and adaptation”, an overarching reduction target has been set for Scope 1–3 emissions from internal operations. In the reporting year, a reduction of 8.5% was achieved compared to the previous year. Around 47.1% of the planned emission reductions in internal operations were achieved in the reporting year in relation to the 2030 milestone.

In the Underwriting (Corporate) sphere of impact, as already described, an increase of 5.4% in absolute emissions was recorded due to an improvement in the underlying data quality. The reported emissions are therefore also above the level of the base year. When comparing emissions from the Underwriting (Corporate) portfolio, it should however be noted that the portfolio and thus the basis for calculating emissions may vary from year to year. Compared to the increase in premium volume since the base year, emissions from the Underwriting (Corporate) portfolio have grown disproportionately. Compared to the base year, a reduction in the emission intensity was thus achieved in the reporting year.

There was a 22.14% reduction in the emissions from corporate bonds and equities and other non-fixed-interest securities in the asset management sphere of impact recorded in the transition plan for climate change mitigation compared to 2024. The target progress in relation to the milestone target set for 2030 was already 148.83% in the reporting year. However, as already explained in chapter ESRS E1-4 “Targets related to climate change mitigation and adaptation”, the emission development is subject to corresponding fluctuations. Target achievement is therefore not static, but requires ongoing monitoring and consistent implementation of the defined actions to achieve the long-term net-zero target.

In the VIG real estate portfolio, a reduction in the emission intensity of 3.8 kg CO₂e/m² compared to the base year was recorded in the reporting year. With regard to the target in accordance with the CRREM scenario, 32.0% of the planned reduction in emission intensity has therefore already been achieved.

On the basis of the actions set out in the transition plan for climate change mitigation, emissions will be gradually and sustainably reduced in the coming years.

GHG intensity based on net revenue

The following table summarises the intensity of VIG’s greenhouse gas emissions. VIG’s total greenhouse gas emissions are shown in relation to the revenue disclosed in the consolidated financial statements. The insurance service revenue – issued business, rental income from investment property and other income (service turnover) were recorded as revenue.

The following table shows the reconciliation of the relevant revenue to the corresponding items in the consolidated balance sheet.