Enhancement

Enhancement refers to the systematic integration of sustainability considerations throughout the entire investment process, from defining the long-term strategic asset allocation (SAA)¹ to monitoring and reporting.

We strive to invest in issuers that are addressing sustainability-related risks and opportunities by applying ESG benchmarks and/or ESG rating thresholds across relevant investment mandates. In 2025, 94% of corporate bonds had an overall MSCI ESG rating at or above the defined BB threshold.

We use a proprietary due diligence approach to select and monitor external investment managers’ alignment with our Responsible Investing strategy, including their integration of sustainability considerations and commitment to responsible investing. Topics assessed include sustainability strategy, governance, policies, resources, stewardship, memberships and disclosure practices.

At the end of 2025, approximately 48% of Swiss Re’s overall investment portfolio was managed externally. Of these assets, approximately 98% were managed by parties committed to responsible investing best practices, such as those promoted by the Principles for Responsible Investment (PRI). These figures have remained stable in recent years.

We monitor and manage climate risks across our investment portfolio using GHG intensity as a key metric. We have an interim emissions reduction target in place for direct corporate bonds and listed equities, covering 32% of the total investment portfolio. For the real estate portfolio, decarbonisation pathways from the Carbon Risk Real Estate Monitor (CRREM) inform our emissions reduction ambition.

Swiss Re Asset Management’s engagement approach aims to support investee companies to achieve long-term sustainability-related goals while strengthening long-term business performance. The  engagement approach covers investee companies within our corporate bond and listed equity mandate, as well as external investment managers from all asset classes. We aim to engage with a selection of managers, as defined in our engagement targets.

We recognise the relevance of engagement and proxy voting as a key element in exercising our shareholder rights and responsibilities. If these activities are delegated to external managers or proxy advisors, we review their policies to ensure alignment with our Responsible Investing strategy.