Swiss Re

In terms of its approach towards impact management, Swiss Re acknowledges that its financing activities have both positive and negative impacts, it identified and prioritised its impacts and set targets for them. The financial institution assigns the responsibility for sustainability issues to the Board of Directors and links the remuneration of its executive and management team to sustainability performance criteria. It has also been a signatory of Women’s Empowerment Principles since 2012. Swiss Re describes its approach to engagement on sustainability themes and impact topics with clients and investees and provides an overview of engagement activities across its insurance and investment activities. Additionally, it discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations. 

As a member of the Net-Zero Asset Owner Alliance and Net-Zero Insurance Alliance, Swiss Re has set a target of net-zero financed emissions by 2050. It discloses the key companies it has identified as priorities to engage with on climate change, specifically on the topic of aligning their business model with the Paris Agreement goals. As a member of Climate Action 100+, the insurance company discloses that it collectively engages with its clients on the topic of climate change. Swiss Re discloses the aggregate amount investments it devotes to green bonds which need to meet the criteria of the International Capital Market Association (ICMA) Green Bond Principles. The financial institution discloses the financing criteria it uses towards some sectors to ensure the protection of nature and biodiversity. 

Swiss Re has a publicly available policy statement committing it to respect human rights and the ILO core labour rights. It also has a grievance mechanism accessible to all workers to raise human rights complaints or concerns. Further, the insurer discloses the proportion of its total direct operations workforce for each employee category by gender, age group, country representation and nationality. Swiss Re has a policy prohibiting bribery and corruption and takes steps to identify and address them. It also discloses a global tax strategy and income tax payments for all its tax jurisdictions. 

In terms of female representation in leadership positions, women are underrepresented on the Swiss Re’s board of directors where only 3 out of 13 board members are women. The insurance company also has an opportunity to reach at least 40% female representation in senior leadership positions. While Swiss Re discloses the total ratio of basic salary to men and women, it does not provide a breakdown per employee category. The financial institution describes its approach to escalation in engaging with its insurance clients but it could provide a similar description within its investment activities. 

While Swiss Re has an interim target for its corporate bond and listed equity portfolio, it could disclose an interim absolute emission target which covers all its financing activities, including its underwriting activities. The financial institution encourages its clients to set a 1.5°C-aligned strategy but it has an opportunity to make this a requirement. Further, the insurer could clarify how much of its time-bound targets for green, social and sustainability bonds is related to green bonds. No evidence was found regarding the financial institution’s approach to fossil fuels that spans across the fossil fuel value chain and across its financing activities, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects. Swiss Re also has an opportunity to commit to minimising the negative impacts it has on nature and biodiversity. 

Swiss Re has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. It could also set one or more mechanisms, or participate in a shared mechanism, accessible to all external individuals and communities who may be adversely impacted by the financial institution to raise human rights complaints or concerns. To provide transparency on financial inclusivity, the insurer has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.