Climate Change - from Strategy to Activity
Investing responsibly has different aspects. Avoiding investments with excessive ESG risks is just one side of the story. Swiss Re goes beyond that. With our approach, we are supporting the transition to a low carbon economy.
As climate change is a main topic, we actively contribute to a less carbon intensive economy. We do this through several activities:
• Investing into the green bond market, primarily relying on the “Green Bond Principles”
• Having infrastructure as a target asset class and focus on renewables
• Avoiding investments in companies where we see high risk of stranded assets
We invest in green bonds in credit markets as well as in the supranational, sovereign and agency (SSA) market. Debt raised through green bonds is used to finance environmental responsible projects that provide clear benefits from that perspective. We are well advanced in meeting our investment target for green bonds of at least USD 1.5bn.
Infrastructure debt is an attractive asset class for a long-term investor like Swiss Re. Improving energy efficiency and developing low-carbon technologies, including renewable energy sources, are critical to reducing carbon emissions and securing future energy supplies. Renewables and social infrastructure investments are therefore the largest sub-sector in our infrastructure mandate.
Furthermore, we avoid investments in companies where substantial part of their revenues stem from thermal coal to actively mitigate the risk of stranded assets over the long term. In case divested companies are able to adapt to a sustainable future, we may reinvest to support them in being part of tomorrow's solution.
We analyse and monitor the actual integration of ESG factors, including climate change, in our portfolio. Moreover, we are committed to regularly reporting on current activities and progress made.
Responsible investing in practice
Our investment philosophy centers on the principle of Asset–Liability Management (ALM) with the aim of generating long–term, sustainable returns. The strong integration of Environmental, Social and Governance...
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