Company and industry/country exclusions
As part of our commitment to tackling human rights and environmental risks, we exclude certain companies and industry/country combinations from our business.
Through our Sustainability Risk Framework we identify, assess and tackle potential human rights and environmental risks in our business transactions. Complementing the due-diligence assessments we carry out through the Sensitive Business Risk process, we also enforce our Umbrella Policies and Sector-specific Guidelines through company and country exclusions.
Our Sustainable Business Risk Framework policies specify certain criteria that may lead us to exclude a company from both our re/insurance transactions and our investments, to the extent that such an exclusion is permissible (eg by virtue of mandatory law or internal policies) and possible (eg if existing documentation relating to such re/insurance transactions and investments provide for it). These criteria include:
- Involvement in prohibited war material
- Verifiable complicity in systemic, repeated and severe human rights violations
- Causing repeated, severe and unmitigated damage to the environment
- Unregulated proliferation of nuclear weapons
- Unethical/cruel animal testing practices
Excluded industry and country combinations
Swiss Re also excludes high risk industries in combination with countries where human rights are violated in a severe and systematic way, and where no reasonable prospect of imminent improvement can be foreseen. This step goes further than compliance with international trade controls (ITCs). Our goal is to refrain from directly underwriting risks or making investments in entities that are involved in high risk industries in countries with a poor human rights record. We review the list of excluded country/industry combinations annually based on independent human rights assessments and update it if warranted.
Complying with the UN Global Compact
As the Sustainable Business Risk Framework is based on the principles of respecting human rights and protecting the environment, the Sustainable Business Risk process with its two due diligence tools, company exclusions and industry/country exclusions are our principal means to ensure compliance with the UN Global Compact in our core business.