Business

One of the foundations of Swiss Re’s commitment to corporate sustainability is the view that it provides both risks and opportunities in the business context. Successful companies of the future will be those that manage risks and develop opportunities the best. A number of internal processes have been put in place and initiatives have been started with the specific aim of ensuring that Swiss Re’s commitment in this respect is put into practice:

Successful companies of the future will be those that manage risks and develop the opportunities best.

Managing the risk

Risks with social, environmental or ethical elements have an increasingly important relevance in the business world. Swiss Re serves clients from many industries and countries around the globe, some of which are particularly exposed to sustainability issues. For this reason Swiss Re continually reassesses its internal procedures and processes to ensure that they are well adapted to dealing with the complex business environment and reflect Swiss Re’s ethical standard.

Sensitive Business Risks (SBR)

In assessing an offer, a business practitioner may have concerns about environmental, social or ethical components of the transaction even though it is technically and legally acceptable. Introduced in 2002, the SBR process is designed to assist underwriters, client managers and asset management specialists by allowing them to submit potentially sensitive business for examination by an ad hoc team of internal experts. This additional level of assessment helps ensure that business complies with the Swiss Re’s commitment to corporate sustainability, as well as other aspects of its PDF Icon Code of Conduct and Core Values.

Armament industry best practice

The introduction of the SBR process revealed that the armament industry presented challenges to underwriters in translating the ethical standards of the Code of Conduct into sound business decisions. Although Swiss Re does not exclude business from the defense industry, it is determined not to support the illegal use of weapons, political repression or human rights violations. The Group has therefore developed best practices to provide additional guidance in dealing with the defense industry.

Country exclusion

In 2005 Swiss Re took the decision to formally exclude business in countries which had particularly severe human rights violations, if no likelihood of improvement was in sight and if business relationships would most possibly lead to directly or indirectly supporting the regime in place. The list of countries excluded is reviewed on a half-yearly basis or, if warranted, according to the situation on the ground.

Identifying opportunities

By offering a reliable risk transfer mechanism and facilitating economic activities that might otherwise be too risky to undertake, insurance is a vital ingredient for enabling economic development in a society.

Swiss Re has designed products tailored specifically to the needs of developing countries and emerging markets, ranging from earthquake cover to drought protection. Also with regard to changing weather patterns and carbon trading, Swiss Re has developed risk transfer products, such as catastrophe bonds and carbon credit risk coverage, as well as offering cover for alternative energy projects. Moreover the scope of innovation is not limited to the product side. With its Public Sector Business Development Initiative, Swiss Re also addresses the needs of governments, non-governmental organisations (NGO's) and multinational organisations, which are often directly and indirectly affected by such risks mentioned above.

These developments have put the Group at the forefront of innovation. For further information, visit the products & services section of our climate change website.

Sustainability portfolio

In 1996 Swiss Re created a sustainability portfolio with the specific aim of investing in companies that provide solutions to sustainability challenges, such as water scarcity, the ever-increasing demand for energy and the depletion of natural resources. In 2007, the total portfolio value amounted to CHF 616 million. The development of this portfolio is reported annually in the Corporate Responsibility Report.

Real estate

Sustainability criteria have always weighed heavily in Swiss Re’s real estate investment portfolio, whether properties are for the company’s own use as office space or held as an investment. In its home country of Switzerland, Swiss Re is one of the largest owners of Minergie®- certified floor space. Minergie® is a quality standard that requires a very high level of energy efficiency and user comfort. Swiss Re buildings were the first to receive the “GI Gutes Innenraumklima” certificate for good air quality in addition to meeting the Minergie® standard. Its regional offices around the world have received various awards for environmental design, comfort standards and landscape management.

Further details on related topics can be found in the annual Corporate Responsibility Report.