Swiss Re's approach to Exclusion is based on our Group-wide Sustainable Business Risk Framework. This advanced risk management tool sets company-wide criteria for what we consider as acceptable business and may thus lead to the exclusion of a company or a country from our investment universe.
The Sustainable Business Risk Framework is based on the overarching principles of respecting human rights and protecting the environment. In addition, specific guidelines apply these two overarching principles to eight sectors or issues in which we perceive major sustainability risks.
To mitigate the risk of stranded assets in the light of the accelerating transition to a net-zero emissions economy and in line with the updated oil and gas policy of our Group-wide Sustainable Business Risk Framework, we exclude the 10% most carbon intensive companies. As part of that, we also avoid thermal coal related investments if they do not meet our pre-defined thresholds.
Additionally, we consider the way companies conduct their business by screening their alignment with the ten principles of the UN Global Compact.
Please refer to our KPI tab for an overview of our exclusion guidelines.