Selection of suppliers

AEGON  uses locally-determined standards as part of its selection process for suppliers. In the United States, these standards are an integral part of the company's procurement policy. AEGON The Netherlands, meanwhile, sets minimum standards for environmental criteria, as well as health and safety. In 2009, the company also established similar minimum standards for its tender processes. In Canada, minimum standards are in line with ISO 14001, an internationally recognized benchmark for environmental management. AEGON companies in the United Kingdom and Hungary set pre-determined minimum standards for their suppliers.

In 2009, AEGON paid out a total of EUR 1.47 billion to suppliers for a variety of goods and services, down 10.4% from EUR 1.64 billion the year before, largely as a result of broader measures to reduce operating costs.

In addition to local measures, AEGON is also working on draft proposals for company-wide sustainability standards for suppliers in its major procurement centers in Europe and North America. This is an important step toward ensuring high ethical standards throughout the company's supply chain. Progress on these proposals has, however, been slower than expected, primarily because the focus of the company's procurement operations during the financial crisis has been on reducing costs. As a result, implementation of these standards has been delayed. Cost reduction efforts will continue into 2010, but AEGON's intention remains to develop a more integrated approach to procurement standards.