To increase insurance protection in climate-exposed countries, the Insurance Development Forum (IDF) and the UN Development Programme, along with the government of Germany, entered into a Tripartite Agreement in which they jointly announced a series of coordinated commitments in 2019. At the UN Climate Action Summit in September 2019, industry members collectively committed to offer up to USD 5 billion of risk capacity for climate risk insurance to contribute to the G7 InsuResilience target of protecting 500 million individuals by 2025 against climate risk. As a member of the IDF, Swiss Re has endorsed this commitment together with a number of peer companies.
Number of (sub-)sovereigns advised 96 120 130 Amount of climate protection offered (in USD) 8.2 billion 10.0 billion 10.7 billion
Total amount of climate protection offered to sovereigns and sub-sovereigns since 2014 (USD 10.0 billion by 2019)
Since 2018, Swiss Re has partnered with Women’s World Banking to provide low-income women in Egypt with an affordable microinsurance solution that protects them against the loss of income in the case of illness or childbirth.
But where there are challenges, there are opportunities. The past year has also offered important lessons, prompting Women’s World Banking to make adjustments to the design and distribution of the microinsurance solution in Egypt and elsewhere in order to better serve its beneficiaries.
A total of 95% of microinsurance customers work in the informal sector. As communities went into lockdown, many of these customers lost their income, forcing them to prioritise basic needs and household expenses over paying their microinsurance
Microinsurance providers on the ground also had to cope with the practical challenges surrounding local COVID-related restrictions as their own employees went into lockdown. To ensure that customers’ claims are processed quickly and efficiently in times of financial need, Women’s World Banking is working with its local partners to offer digital filing solutions.
Despite these challenges, around 296 000 customers and their family members benefitted from insurance cover by the end of 2020. Swiss Re remains committed to reducing the protection gap by providing affordable health and life insurance to low-income individuals. As the lead reinsurer of the Women’s World Banking microinsurance programme in Egypt, we will continue to support its expansion across Egypt as well as its potential replication in other countries in Africa and Asia. Although the rate of this expansion will largely depend on how the COVID-19 pandemic evolves over the next few months and years, we are confident that we can reach two million beneficiaries by 2023.
Customers and their family members benefitting from insurance cover by the end of 2020
We offer a range of re/insurance solutions to manage the risks of different kinds of renewable energy projects, in line with our 2030 Sustainability Ambition to advance the energy transition. At the end of 2020, Swiss Re was providing risk cover to more than 5 600 wind and solar farms, avoiding over 22 million tonnes in CO2 emissions.
Offshore wind is considered a promising renewable energy source. Swiss Re Corporate Solutions has both the large capacity and the technical expertise to help manage its complex risks. We are continually enhancing our understanding of these risks, are in contact with many stakeholders in this industry segment and share our insights with our clients. As an initiator and co-founder of the European Wind Turbine Committee established in 2011, we were instrumental in developing the Offshore Code of Practice (OCoP), a best-practice guide for risk management in the sector. Mirroring these efforts, we are now considered a lead market for offshore wind risks. In recent years, Swiss Re Corporate Solutions has participated in numerous offshore wind power projects, including standalone offshore substations and export cables.
Enabling the expansion of offshore wind in Taiwan With a presence in over 25 countries, German-based wpd is one of the world’s largest independent power producers, operating 2 270 wind turbines with an installed capacity of 4 720 megawatts powering over 3.2 million households.
Domcura, one of Germany’s leading broker pool providers specialising in homeowner insurance, sought to offer flood protection to its customers. It was therefore looking for a long-term strategic partner who could support product innovation in this area while providing additional capacity for its core business.
supported by an increase from 29 to 40 distribution partners between 2019 and 2020.
Life Guide: a leading life and health underwriting manual Life Guide is a key component of the Magnum underwriting platform. It has also played a critical role during the COVID-19 pandemic. To learn how insights from Life Guide have supported our insurance partners during the COVID-19 crisis, please refer to page 25 of the Business Report 2020.
Swiss Re supports the worldwide reduction of greenhouse gas emissions and contributes to the goal of limiting global warming to 1.5°C above pre-industrial levels. We continuously review measures to assist the transition to a low-carbon economy and, formalising our commitment, in 2015 signed the Paris Pledge for Action to affirm our support for the Paris Agreement.
Data protection and privacy compliance at Swiss Re 2020 highlights: • Developed an exit strategy for thermal coal in our treaty business.
Our commitment to reach net-zero emissions In 2019, we made a public commitment to reach net-zero emissions by 2050 across our whole business by signing the UN Global Compact Business Ambition for 1.5°C. This joins our active role as a founding member of the UN-convened Net-Zero Asset Owner Alliance, through which we have also made a net-zero commitment specifically for our investment portfolio by 2050 (see page 51).
Thermal coal policy Through our Sustainable Business Risk Framework (see pages 38–41), we have continued to implement our thermal coal policy in our underwriting, including direct, facultative and treaty business. We first introduced this policy in mid-2018, pledging not to provide re/insurance to businesses with more than 30% exposure to thermal coal utilities or mining.
For transactions located in low- and middle-income countries that derive more than 70% of electricity from coal, existing power plants (ie operational before 2018) can be covered until 2025 if there is evidence that the insured is implementing an effective emission reduction strategy.
Our approach introduces coal exposure thresholds for treaties across our property, engineering, casualty, credit and surety, and marine cargo lines of business. The initial exposure thresholds will become effective in 2023 and differ for specific lines of business and geographical areas. They will then be gradually lowered until the final phase-out targets are reached.
These coal-related actions in our treaty business are important steps on our path to reaching a net-zero emissions re/insurance portfolio by 2050. They are also in line with the commitment we made in 2019 by becoming a member of the Powering Past Coal Alliance.
Oil and gas policy We have also committed to shifting away from the most carbon-intensive oil and gas production, and made this public in our 2019 Sustainability Report. You can read more about this commitment and what we have been doing to meet it on page 39.
Many businesses – including our own – grapple with the issue that some business transactions may be economically beneficial and perfectly legal, yet may still have adverse environmental or social impacts. We believe it is important to recognise the existence of such dilemmas and address them responsibly throughout our business.
t CO2e/USDm revenue estimated weighted average carbon intensity of our direct insurance portfolio
Source: Rystad Energy EmissionsCube; * CO2 emissions generated from direct upstream production including flaring, refining / processing and end use combustion (adjusted for feedstock).
Emissions from refining / processing and end use combustion are allocated to upstream assets, by considering the quality and mix of products. ** Only companies with more than 10m boe in production.
Oil and gas will play a role for decades to come, though they will be gradually replaced by renewable energy sources.
From July 2021, we will no longer provide individual insurance covers for those oil and gas companies that are responsible for the world’s most carbon-intensive oil and gas production (top 5%).
The Sustainable Business Risk Framework consists of: • Two umbrella policies on human rights and
environmental protection plus eight specific guidelines on sensitive sectors or issues
• The Sustainable Business Risk (SBR) process comprising a sustainable business risk rating in a semi-automated assessment and referral tool – duediligence mechanisms to assess our business transactions
The Sustainable Business Risk process We implement the framework’s policies through a due-diligence process with three elements: the Sustainable Business Risk (SBR) Assessment, the SBR Referral Tool and an appeals process. This process is firmly embedded in the Group’s underwriting guidelines and processes.
Number of Sustainable Business Risk referrals and decisions taken 25.2% Mining (excl. thermal coal) 19.7% Oil and gas 13.9% Thermal coal 9.7% Dams 9.7% Forestry, pulp and paper, and oil palm 9.7% Other: human rights 7.0% Other: environmental issues 3.9% Defence 1.2% Animal testing
As the Sustainable Business Risk Framework is based on the principles of respecting human rights and protecting the environment, the SBR process with its two due-diligence tools, company exclusions and country exclusions is our principal means to ensure compliance with the UN Global Compact in our core business.
Training We offer our employees regular in-house training on the Sustainable Business Risk Framework. Three years ago, we developed a completely new eLearning course for this purpose and updated it in 2020. It is compulsory for all our employees who work in underwriting and with our clients as well as for all our new entrants. In 2020, a total of approximately 4 000 employees completed the mandatory training course.
This complex landscape provides fertile ground for “emerging risks” – newly developing or changing risks that are not yet entirely understood and managed. Such risks are difficult to quantify, and their potential impact on society and the re/ insurance industry is not yet sufficiently accounted for.
Client and industry interaction Over the year, we had a number of important external engagements on sustainability risks with clients, brokers, investors, industry peers and civil society groups such as environmental and humanitarian NGOs. We held meetings with clients operating in sensitive sectors such as mining, forestry, and oil and gas, discussing potential measures they could take to address their sustainability risks.
As part of our ongoing efforts to implement our thermal coal policy (see page 38), we had over 400 engagements with clients across the globe in 2020. Many of them have introduced a thermal coal policy themselves and in turn are helping us reduce our carbon exposure in our own business.
Mental health issues have recently been on the rise. For the re/insurance industry this poses an emerging risk because it has implications for disability claims and cases of early mortality. Swiss Re not only seeks to adequately diversify risk tansfer solutions, but advocates awareness building, destigmatisation and preventive measures.
Severe depression is of particular concern since it carries the risk of causing inability to work, higher suicide rates and increased likelihood for physical health impairment. Often it starts as mild mood or anxiety disorders, which in turn may be triggered or fostered by stress, social isolation, sleep deprivation, personal loss and similar issues. As the contribution of depression to the global “burden of disease” increases, the potential progression from risk triggers and mild phenomena to severe states is brought into sharper relief.
A notable development in this context is the increase of mental health issues among teenagers and young adults. If conditions remain untreated and persist, affected individuals may develop more severe mental health issues later in life, as well as physical health problems such as obesity, cardiovascular diseases, back pain or diabetes. Preventing mental illness from developing or escalating can thus not only improve personal wellbeing, but reduce health costs, too. For re/insurers this has direct implications, especially regarding disability claims and cases of early mortality.
provided by emerging technological tools: eg lifestyle and mood monitoring devices, alarm and intervention apps or support bots to provide advice in acute situations.
To help build re/insurance awareness and knowledge, Swiss Re pursues comparative research and continuously explores the potential of different approaches. With a focus on Asia, Swiss Re Institute has issued several publications on mental health risks.
Our SONAR framework SONAR (“systematic observation of notions associated with risk”) is our Group-wide framework specifically designed to manage and communicate emerging risks. Firmly embedded in the Group’s risk management organisation, SONAR allows us to identify, assess and report these risks in a timely manner and to factor them into our strategic business decisions.
Given these challenges, we believe it is essential to foster risk dialogue with various partners. By sharing perceptions and assessments, all parties can gain a better understanding of potential emerging risks.
low-carbon future • Prolonged large-scale power blackout swissre.com: Top emerging risks and trends Links to four articles on top emerging risks and trends identified in the SONAR 2020 report: • Special feature: Moving to a lowcarbon future
Swiss Re SONAR: New emerging risk insights Swiss Re’s SONAR report features emerging risk themes that have the potential to impact the re/insurance industry. These topics derive from our SONAR process and have been assessed by our emerging risk management experts in recent years.
4% Cash and cash equivalents 13% Short-term investments 39% Government bonds 27% Credit bonds 7% Equities2 3% Mortgages and other loans 7% Other investments (incl. policy loans)
“We make the world more resilient” is Swiss Re’s vision. More than ten years ago, our Asset Management unit embarked on a journey to not only generate risk-adjusted, stable long-term returns, but to also consider environmental, social and governance (ESG) aspects in our investment decisions. With this approach, our Asset Management has been steadily contributing to the Group’s vision of making the world more resilient.
• Set a target to increase our social and renewable infrastructure portfolio by USD 750 million by the end of 2024.
Swiss Re Asset Management invests in companies that are well-prepared for future sustainability challenges, by analysing their exposure and ability to manage underlying ESG risks. As part of this, we have been successfully applying a minimum ESG rating threshold of BB to sovereign, supranational and agency bonds for several years (see overview on page 47). Any possible exception to the minimum rating would be driven by ALM considerations.
In 2017, we took an important step forward for our actively managed listed equities and corporate bond portfolios: As part of our active risk management, we switched to ESG benchmarks consisting of better-rated companies from an ESG perspective. Limited leeway for deviations is given, whereby such investments are required to have either a positive ESG trend or provide compensation for the additional underlying ESG risk (see overview on page 47).
If benchmarks are not applicable, a minimum ESG rating threshold is applied to our mandates, such as the buy-and-maintain corporate bond mandates. By consistently applying these prerequisites, we were able to further improve the ESG profile of our portfolio throughout the year, as shown in the graph on the left.
Thematic investments Positive and direct real-world impact supporting a specific purpose
ESG rating distribution across our corporate bond and listed equities portfolio in %
At the end of 2020, approximately 35% of our investment portfolio was managed externally, and 98% of those assets were managed by signatories to the Principles for Responsible Investment (PRI).
Another important part of our Responsible Investing strategy is our approach as an active shareholder, which we describe in the “How we engage” section on page 50.
Inclusion Thematic investments are an ideal way to address specific sustainability topics. On the one hand, we target investments that contribute to the transition to a net-zero emissions economy and climate change mitigation. An effective way to achieve this is through investments in infrastructure renewables, green bonds and real estate.
On the other hand, we contribute to social improvements through investments in social infrastructure as well as sustainability and social bonds. In this context, we measure the real-world impact of our investments and align them to the Sustainable Development Goals (SDGs). We currently focus on the seven SDGs shown in the graph on page 48.
Overview of ESG considerations in Swiss Reʼs investment portfolio 1 Due to a change in our investment setup, the 2020 GRESB Assessment does not reflect the portfolio's performance appropriately for 2020.
Active mandates benchmarked against ESG BB and better index with limited leeway to deviate from the benchmark
Target to increase social and renewable infrastructure portfolio by USD 750 million by the end of 2024
New investments only made into private equity funds that adhere to ESG guidelines
For our green bond investments, we use the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA) as our guidance. For social bonds we use the Social Bond Principles (SBP) and for sustainability bonds the Sustainability Bond Guidelines (SBG), both issued by the ICMA too.
In total, we held USD 2.6 billion in these bonds at the end of 2020, which is more than 50% of our target of USD 4 billion, to be achieved by the end of 2024.
T h e m a ti c in ve st m e n ts
Renewable and social infrastructure loans Green real estate Impact private equity2
In our real estate portfolio, we focus on certified buildings, such as those adhering to the MINERGIE® standard in Switzerland. By the end of 2020, the value of our MINERGIE®-certified buildings reached USD 0.6 billion or 27% of our Swiss portfolio.
Swiss real estate portfolio In Australia and the UK, the investment managers’ approach to sustainability includes the National Australian Built Environment Rating System (NABERS) and the BREEAM certification framework, respectively.
As part of the updated oil and gas policy of our Sustainable Business Risk Framework, we exclude the 10% most carbon-intensive companies in this sector. To mitigate the risk of stranded assets in the light of the accelerating transition to a net-zero economy, we also avoid investments in companies that generate 30% or more of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation. We have also divested from companies with more than 20% revenues from oil sands operations. Further strengthening our efforts, we introduced an absolute coal threshold in 2019: We are committed to not investing in mining companies that produce at least 20 million tonnes of coal per year and in power utility generators with more than 10 gigawatts of installed coal fire capacity.
In our Financial Report 2020, we disclose further information on how we set targets, manage our climate-related investment risks and opportunities, and measure our activities in our climate-related financial disclosures (TCFD) section (pages 148 –179).
Stewardship In 2020, we exercised 95% of our voting rights of our listed equity mandates. We voted on 4 807 voting items through our external managers. We voted in line with the respective management resolution recommendation in 4 225 cases (88%) and against it in 457 cases (9%). In 121 cases (3%), we abstained from voting. The remaining votes were withheld.
In addition to shares in listed companies, investments in our equities portfolio include equity exchange-traded funds (ETFs). The fund managers cast votes on these ETFs in line with their own voting policies and processes.
We believe that engagement with the real economy is an integral part of our contribution to limiting global warming to 1.5°C. Through our Engagement Framework we aim to encourage companies to develop a climate strategy and formally define how they can manage related risks, ultimately preparing them for the transition to a 1.5°C economy. To this end, the newly created framework aligns well with our own commitment to transitioning to a net-zero economy and the Net-Zero Asset Owner Alliance’s Target Setting Protocol.
We first formalised our commitment to responsible investing in 2007 by signing the Principles for Responsible Investment (PRI). We have once again been recognised by the PRI for our thought leadership, having our excellent assessment result from the previous year confirmed.
Our well-defined and strong governance is key to have responsible investing consistently integrated along the whole investment process in a structured and controlled way. For further information about our governance framework, please visit our website: Engagement activities per sector in % We work closely with our investment managers to execute our two engagement topics for each of our portfolio companies. Regarding engagement frequency and desired outcomes we have set targets. These allow us to monitor progress in a structured way. The framework also takes into account regulatory requirements such as the Shareholder Rights Directive 2017/828 (SRD II).
Promoting responsible investing Shifting the large institutional asset base towards sustainable investments would mark a big step forward in making the world more resilient. We therefore do not only collaborate with our investee companies but also with other key stakeholders to advance this process. As an example, we contributed to the European Commission’s Technical Expert Group on Sustainable Finance and specifically participated in the development of climate-transition and Paris-aligned benchmarks and of ESG reporting needs for benchmarks until the end of the mandate in September 2020. Furthermore, as part of relevant industry organisations such as the Swiss Insurance Association and Swiss Sustainable Finance, we also advise on sustainable financial market developments in Switzerland.
• Political and legal entities: multilateral organisations, governments, regulators, standard-setting boards
• Continuously shared information on COVID-19 through a dedicated portal on our website.
In the Sustainability Report we present summaries of selected activities in 2020. More information on these and other activities can be found on our website.
In collaboration with the UNEP FI Principles for Sustainable Insurance (PSI) we coorganised a conference addressing key aspects of “Sustainability Leadership in Insurance”. Against the backdrop of the COVID-19 crisis, it was rescheduled as a series of four virtual events held between May and August 2020. It examined how the re/insurance industry can help pave the way for a more sustainable world post-crisis. A year earlier, we had helped organise a similar event focusing on the role of investing.
Setting the agenda for the series, its first event brought together the chief executives of UNEP and Swiss Re and other senior figures with an international audience. The discussion focused on the full implications of the pandemic. While the immediate priority has been to slow its spread and protect people, emphasis was placed on the fact that 60% of all known infectious diseases in humans – and 75% of all emerging ones – are zoonotic. Never before have there been so many possibilities for pathogens to pass from wild and domestic animals to humans. We need to embrace the lesson that deteriorating ecosystems undermine societies’ resilience. The re/insurance industry can and must be part of reinforced efforts to address habitat and biodiversity loss, along with climate change.
Report: Conserving our common heritage In cooperation with the WWF, Swiss Re Institute published a report on how the newly emerging concept of spatial finance can help protect World Heritage Sites (WHS). Spatial finance uses geospatial observational data (geographical information systems, GIS) combined with machine learning to assess potential impacts of financing and re/insurance decisions on specific areas, both of a long-term and short-term nature.
The fourth and final event of the series put the spotlight on climate change, specifically on how re/insurers can align their businesses with the Paris Agreement. While many have already made significant progress on transitioning their investments, the participants agreed that now is the time to manage climate risks in their re/insurance portfolios more systematically. Three main topics emerged in this context. Firstly, the industry needs more innovation, developing products and services that really incentivise climate risk mitigation. Secondly, the large variations between different real-economy sectors mean that a reliable methodology is required to measure the (mis)alignment of a specific portfolio with the 1.5°C target of the Paris Agreement. A technical paper published by the Chief Risk Officer (CRO) Forum on carbon footprinting methodologies is an important step in that direction. Thirdly, given these challenges, close cooperation with clients, but also with governments, regulators, scientists and other stakeholders, was regarded as essential to achieve real progress.
sigma 2/2020: Natural catastrophes in times of economic accumulation and climate change
Nevertheless, Swiss Re Institute believes that weather risks remain insurable if adequate adaptation action is taken. Importantly, re/insurers need to constantly adapt their modelling to this dynamic risk landscape by incorporating socio-economic developments, the latest scientific research on climate change and the status of local mitigation measures. In other words, models must be adapted before events, not afterwards.
Africa has a vast renewable energy potential, and hydropower forms an important part of the power mix today. However, the more environmentally friendly, modern renewable energy technologies, such as solar or wind, have the lowest penetration of any region globally.
International Energy Agency, we estimate total investment in RETs in Africa to reach between USD 250 billion and USD 1 trillion in the next 20 years.
Meeting this demand for investment will require a much stronger involvement of the private sector. There still remain some important challenges to this, such as political uncertainties and unstable or insufficient regulatory policy frameworks, which need to be addressed.
For their part, re/insurers can play an important role in de-risking private investments against financial and physical risks. This includes traditional risk transfer solutions (property, engineering, marine, liability) as well as non-traditional ones, which provide hedges against volatile production levels or price swings. It will be important for local insurance sectors to build up the necessary skills.
As part of our ongoing dialogue with stakeholders, we have been sharing information on many aspects of the pandemic, ranging from research insights through analysing economic implications to making recommendations for the post-pandemic era. Most of this information can be accessed in the special section “COVID-19: lessons learned and the way forward” at www.swissre.com.
Expertise publication: Biodiversity and Ecosystem Services – A business case for re/insurance
In recent years, the world has made considerable progress in understanding the impact of climate change. There is, however, less understanding of the impact of biodiversity on our lives and the economy, although it is just as important.
Understanding the extent and impact of this decline and the associated risks is key to minimising further damage. This is why Swiss Re Institute has created the BES Index. Bringing together masses of data and research, it provides a detailed, kilometreby -kilometre view of the state of biodiversity and ecosystem services in any given location.
The food/agriculture/health nexus is a focus area within our 2030 Sustainability Ambition of “Building societal resilience” and a research priority of Swiss Re Institute. Nutrition has a significant impact on chronic diseases like diabetes and obesity, yet there is great controversy about what actually constitutes a healthy diet.
To help resolve such disagreements and drive good science and research in the nutrition space, in 2018 Swiss Re Institute started a partnership with The BMJ, a renowned UK-based medical journal. Through the partnership we sponsored a series of landmark articles by leading nutrition researchers and held an initial Food for Thought conference in Zurich.
See website See website 1 IPBES (2020). Workshop Report on Biodiversity and Pandemics of the Intergovernmental Platform on Biodiversity and Ecosystem Services. IPBES secretariat, Bonn, Germany.
The digital age has brought an explosion of heterogeneous data from different sources and platforms, which can be used to broaden the reach and boundaries of insurability. As the insurance value chain becomes more digitally connected and disaggregated at the same time, re/insurers will be able to gain better insights into customer segments and partners.
Based on advanced analytics capabilities, insurers will be able to develop a detailed and more granular understanding of different customer needs and preferences, and thus offer flexible, optimised protection offerings. This will go hand in hand with two further important developments: moving from a traditional product-focused sales approach to one that is geared to customers’ broader life-time needs, and optimising interaction across a diverse range of customer touch points.
As a result, consumers will be able to interact via digital channels and to access relevant protection products and services. According to sigma, ongoing incremental adoption of digital technologies will thus broaden the scope, accessibility and cost-effectiveness of insurance, helping to close the protection gap.
Our sigma edition 1/2020 provides a comprehensive overview of the changes that digitisation will enable in the re/insurance industry, including affordable and accessible products. We shared more information on this process in other contributions, also discussing some of the challenges lying ahead.
For example, in the article “Why data and machine intelligence will become the new normal in insurance”, authors from Swiss Re Institute drew attention to the increasing importance of personalisation and the need to get this right. A potential pitfall is to assume homogeneity across specific groups and to develop solutions based on superficial group characteristics. What will be paramount, in contrast, is to tailor services and online experiences to individuals rather than groups.
Care must also be taken if vulnerable groups are to be reached as soon as possible, for example people in lower income brackets or with chronic mental health conditions. If efforts focus too much on millennials, who currently constitute the majority of digital consumers, there is a risk that vulnerable groups are not represented and visible in the data on which customer surveys are based. Products will then not be adapted to their specific needs.
As a knowledge company in the financial services sector, we do not cause large environmental or social impacts through our own operations. Nonetheless, we firmly believe that as a company committed to sustainability we should minimise our operational footprint and lead by example through ambitious targets and measures.
In 2019, we committed to achieving net-zero emissions in our operations by 2030. From 2021 we are implementing this new commitment by setting separate targets for emission reductions and carbon removal, both under the follow-up CO2NetZero Programme.
Furthermore, we apply sustainability guidelines to our supply chain activities. Extending our efforts beyond our company, we continue to play an active role in the Swiss Climate Foundation.
• Set target to reduce CO2 emissions from air travel by 30% relative to 2018 level, to be followed by ambitious post-COVID target.
• Completed second cycle of our Greenhouse Neutral Programme (2003 – 2013), meeting and exceeding targets for CO2 emissions per employee as well as energy intensity.
• Met our target to cover 100% of our power consumption from renewable sources by the end of 2020.
• Decided to launch a follow-up initiative to our COyou2 Programme.
Post 2020: compensation through carbon removal in line with net-zero target
Firstly, we are further reinforcing our efforts to reduce the CO2 emissions caused by our own operations. We have set a target to reduce emissions from air travel by 30% in 2021, relative to the 2018 level, and will define a new, ambitious target for the post-pandemic period. In addition to this, we are committed to continuing to reduce our energy intensity (kWh/FTE) by 2% per year throughout the decade, relative to the 2018 level.
Secondly, we need to purchase carbon removal certificates from impactful projects. As the carbon removal market is still in its infancy, we are keen to catalyse its development through our early engagement.
Net-zero emissions is a challenging concept. It means that at a certain point in time the net amount of emissions entering the atmosphere must reach zero. In other words, for every tonne of CO2 that cannot be avoided yet, another tonne needs to be removed from the atmosphere and stored permanently through so-called carbon removal solutions. To keep global warming well below 2°C as stated in the Paris Agreement, the world needs to reach net-zero emissions by 2050 and stay at net-negative emissions throughout the second half of the century. The climate models predict that this will take billions of tonnes of negative emissions per year.
In September 2020, we took a significant step forward on our journey towards net-zero emissions in our operations, announcing the introduction of a triple-digit real internal carbon price.
Starting in January 2021, we are increasing our internal carbon price from USD 8 to USD 100 per tonne of CO2, thus following the call by the UN Global Compact on companies to price carbon at a minimum of USD 100 per tonne of CO2. Swiss Re is the first multinational company to announce a triple-digit real carbon levy on both direct and indirect operational emissions (such as business travel). By 2030, the levy will gradually increase to USD 200 per tonne of CO2, the market price we expect for highquality removals at that point in time, based on cost projections by the Intergovernmental Panel on Climate Change (IPCC) and current market intelligence.
Carbon Steering Levy. To this end, we are making sure that the levy is displayed at all times and all levels of decisionmaking, for instance in the travel booking tool when comparing flight options.
Based on the funds expected from the levy, we have developed a spending plan for our emissions compensation requirements over the next ten years until 2030. Until 2020, we purchased 100% high-quality carbon offsets in the price range of USD 5–20 per tonne. Thanks to the new levy, we will be able to add more and more high-quality carbon removals to our compensation mix, which at present can cost up to several hundreds of USD per tonne. By purchasing a mix of the two certificate types, we can set the average compensation cost so as to match the price level of the Carbon Steering Levy.
For 2021, this means a split of 10% removal and 90% carbon offsets, together costing USD 100 per tonne on average. By 2025, we will have increased the levy to USD 145 and expect to purchase a mix of 50% offsets and 50% removals. In 2030, when the levy will be at USD 200 per tonne, we expect to be able to purchase 100% removals – as required by our net-zero target.
We will procure the removals using a combination of three approaches: long-term Carbon Removal Purchasing Agreements (CRPAs) with strategic partners, payments into aggregation solutions like a Carbon Removal Fund (CRF), and conventional “over-the-counter” purchases.
With a ten-year planning horizon and a transparent, triple-digit price level, our new Carbon Steering Levy sends a powerful market signal to the emerging carbon removal industry. By entering long-term CRPAs, Swiss Re can establish itself as a credible partner in the carbon removal space, which also has benefits for our business: It should open doors for our underwriters and asset managers to access the new risk pools and asset classes of the emerging low-carbon economy.
Rationale behind the price level of our Carbon Steering Levy: The anticipated average price of high-quality removals is illustrative, based on today’s market intelligence and price projections of various carbon removal solutions (weighted by their potential) as in the Special Report on Global Warming of 1.5 °C published by the Intergovernmental Panel on Climate Change in 2018 (IPCC SR15).
Reduce CO2 emissions per FTE by 45% by the end of 2013, relative to 2003. Then maintain the achieved emission reductions per FTE until the end of 2020
• Reduction of 49% between 2003 and 2013 • Further reduction of 10% between 2013 and 2019 • Drop of 55% between 2019 and 2020, incl.
a strong impact from COVID-19 Total reduction of 80% between 2003 and 2020 (54% between 2003 and 2019)
Continuously reduce energy intensity (power consumption and heating) by 2% per year
• Drop of 20% between 2019 and 2020, incl. strong impact from COVID-19
Total reduction of 75% between 2003 and 2020 (69% between 2003 and 2019)
• Share of power from renewable sources 100% at the end of 2020
We have implemented our Greenhouse Neutral Programme through a set of concrete measures (see pages 65 – 67).
Below is a summary of the programme’s principal targets and what we achieved between 2003 and 2020. Because of the distorting effect of the COVID-19 crisis, we also show the figures as of the end of 2019 where relevant: Thus, we have achieved all the targets defined through the Greenhouse Neutral Programme, independent of the impact of the COVID-19 pandemic. The tables on page 65 provide more detailed information on the development of CO2 emissions as well as the underlying environmental data between 2013 and 2020.
Below you can read summaries of the principal actions we have taken to implement the Greenhouse Neutral Programme.
(eg at Armonk, Swiss Re Next in Zurich, Bangalore and Folkestone)
• Indirect investments via long-term virtual power purchase agreements from newly built plants
• Sourcing of high-quality renewable energy certificates (eg naturemade star in Switzerland and NaturEnergie in Germany)
Reducing energy consumption In parallel with our switch to using renewable power, we have made continuous efforts to lower the actual amount of energy consumed per employee or, in other words, to reduce our energy intensity (measured as kWh/FTE). Through many small measures to improve energy efficiency and by concentrating back-office tasks in fewer and more energy-efficient buildings, we managed to cut our energy intensity by a total of 46.5% between 2003 and 2013.
Despite these measures, the average amount of kilometres travelled per employee and the associated CO2 emissions increased slightly for a number of years before the outbreak of the COVID-19 pandemic, mainly driven by our continued expansion in high growth markets. (In 2019, the figure was 14 271 km/FTE, 5% higher than in 2013.)
For the period between 2014 and 2020, we bought and retired carbon offsets for a total of 494 000 tonnes of CO2e emissions. In 2019, we also purchased a first batch of third-party verified carbon removal certificates to test that upcoming market. For 2020, we bought carbon offsets for a total of 27 250 tonnes of CO2e, a significant drop from the previous year (70 303 tonnes of CO2e) due to the COVID-19 pandemic. To meet our commitment to net-zero emissions in our operations by 2030, we will now gradually switch from conventional carbon offsetting to carbon removal (see page 62).
External verification of our CO₂ and environmental data Ever since we first launched our Greenhouse Neutral Programme in 2003, we have disclosed our CO2 emissions and their relative performance over time, expanding our reporting scope from 2013. The method we use to calculate our emissions is based on the guidelines of the Greenhouse Gas Protocol, the most widely used emissions accounting standard.
Before our environmental data are published, PricewaterhouseCoopers checks them to verify our calculations. Their complete assurance report for the whole Sustainability Report is included on pages 92 – 93.
27 250 Tonnes of CO2e compensated in 2020 (70 303 in 2019)
We initially invested in the Community Development Carbon Fund (CDCF) run by the World Bank, the first fund designed not only to generate emission reductions, but also community benefits through the projects it finances: access to clean water, improved health conditions, creation of jobs, empowering women and more.
To run our operations, we continuously procure a wide range of goods and services. In line with our overarching Group Sourcing Standard, we select suppliers that offer the best value for money, meet high quality standards and adhere to Swiss Re’s Code of Conduct.
IT and data services are one of our main sourcing categories. For the procurement of all our goods and services from external vendors we use a Group Sourcing Standard, which incorporates requirements on human rights, labour conditions, environmental impacts and anti-corruption. In 2020, we completed an ESG assessment for 95% of our Tier 1 and Tier 2 vendors.
For some sourcing categories, we have also developed Minimum Standards that further specify our requirements. Besides power (see page 65), they cover paper, cleaning services and agents, refrigerant agents and building materials.
Share of our Tier 1 and 2 vendors ESG-assessed by the end of 2020 (35% by the end of 2019)
Reducing our own carbon footprint has long been an important element of our efforts to tackle climate change. In parallel with the many operational actions we have taken (see pages 64 – 67), we also wanted to raise awareness of the issue among our employees and encourage them to take action themselves. This is why in 2007 we launched the COyou2 Programme, offering our employees subsidies of up to 50% for a range of investments to help them reduce their private carbon footprints. To our knowledge, it was the first global corporate initiative of its kind at the time.
Our vision is to ensure our employees find meaning in their work and have a deep sense of purpose. We also aim to ensure they have an attractive, flexible and inclusive work environment. We are constantly looking for new ways to improve the wellbeing of our people and prepare for the changing needs of the future, drawing on the knowhow and experience of our diverse employees. We collaborate in the spirit of “Let’s be smarter together”, convinced that only by doing so can we maximise our full potential. We are passionate about building an environment of trust, respect and responsibility, in which how we achieve results is every bit as important as what we achieve.
For me personally, it’s important that I can make a positive contribution to society.
Swiss Re | Sustainability Report 2020 71 2020 highlights: • 71%: Our highest score in the employee engagement index since we started measuring in 2015.
• 87% of our employees believe Swiss Re is appropriately assisting employees during the COVID-19 pandemic.
• Further roll-out of Pathways, Swiss Re’s mental health network, as well as Mosaic, Swiss Re’s network for racial and ethnic diversity.
The COVID-19 pandemic had far-reaching consequences for our personal and professional lives. It sent us to work from home, put a stop to many social activities, required us to cope with home schooling and changed our daily habits in many ways. Our Swiss Re vision and culture helped us stay connected, support each other and remain resilient, enabling us to deliver our best for our clients and colleagues.
COVID-19 is a global crisis with far-reaching implications for all of us. To make the world more resilient, we need to ensure we build organisational and personal resilience within our teams first. We introduced significant measures to respond to the immediate crisis based on two employee surveys conducted in 2020, in which we aimed to understand how our employees are coping with these new challenges and what we can do to support them. We also provided training for our employees and leaders on to how to navigate through the crisis. Our efforts were rewarded with positive feedback: in our second employee survey of 2020, 87% of our employees agreed with the statement that Swiss Re is appropriately assisting employees during the COVID-19 pandemic.
• 54% work in Europe, the Middle East and Africa (EMEA), 26% in the Americas and 20% in the Asia-Pacific (APAC) region
• 4.6% growth in number of employees compared to 2019, mainly in the EMEA and APAC regions, and a reduction in the Americas. This is in line with the evolution of our business and our focus on growth in new markets
• The fastest growing locations are our Business Solutions Centres in Bratislava, Slovakia and Bangalore, India, which provide us with access to new talent pools
Please find detailed information on our employee data in the table below, and on our website.
We are delighted that our efforts have once again been recognised through various awards in 2020. For example, we were certified as “Top Employer in Switzerland”, by the Top Employers Institute for the first time. We are committed to creating a workplace where everyone can thrive, and we are proud to see that our performance is recognised externally.
Our strategic ambitions are built on three pillars and one desired outcome: • Lead We are accountable for our own performance and development and help others to be the best they can. We create excitement for the future and connect on a personal and emotional level.
We create an inclusive environment where people feel respected for who they are. We have a growth mindset, put client needs at the heart of our decisions, embrace digital opportunities, and focus on sustainable, commercial and financial outcomes. We aim to bring our entire organisation closer together as One Swiss Re and leverage strengths across the Group.
Excluding countries and entities where data is not available (mainly Americas and iptiQ). The above table shows the figures excluding ReAssure employees.
Absences due to sick leave in 2020 (% of employees) The percentage of employees who were sick was significantly reduced in 2020
In 2020, our working environment changed profoundly. We do not believe that we will return to how things were before and therefore need to embrace the “new normal”. To define the future of work at Swiss Re we seek to strike a balance between employee needs, desired corporate culture, the need for in-person collaboration and innovation, engagement, talent attraction, sustainability, productivity and wellbeing. We see the future as a hybrid model between the workplace and the home and aim to remain at the forefront of those changes.
In 2020, the wellbeing of our employees was our top priority. We took many steps to keep up with this topic: Personal resilience Two wellbeing surveys conducted in 2020 enabled us to listen to and understand how employees have been coping with the evolving situation. We actively sought their feedback on how we could support them better.
Support work from home To reflect the challenges of work disruptions, Swiss Re gave the majority of employees a discretionary one-time award in August 2020 equivalent to ≈USD 200 net. This payment aimed to help employees cover the costs of, for example, electronic equipment or furniture for their workspace at home.
In recognition of these challenges, we celebrated the first Swiss ReSilience Day: a one-off event in January 2021. All employees were given the day off in addition to their annual leave and received another one-time award of ≈ USD 200 towards helping them recharge their batteries.
Caring for the wellbeing of our employees during stormy times: the COVID-19 crisis
As Swiss Re evolves, understanding and sourcing critical, strategic, future-ready skills is essential for our journey to be a tech- and data-enabled risk knowledge company. In 2020, out of 2 037 vacant positions, 27% (546) were filled internally. In 2020, we made significant progress on our transformation across all Business Units. For example, in our Reinsurance Business Unit, we drove a number of specific initiatives: • Culture transformation: a cultural change programme resulting in improved client focus, efficiency, engagement and commercial thinking. The programme included change leadership workshops with around 300 leaders
• Underwriting transformation: skills assessments resulting in significant change and key strategic hires in senior leadership to help drive change
Additionally, we have continued to invest in developing fit for future leaders at all levels by identifying and developing internal top talents and recruiting new leaders. Our efforts showed an improvement of eight percentage points over the last 18 months on employees’ perception of the statement “Swiss Re’s senior leadership fills me with excitement for the future of Swiss Re”.
Investing in our leadership and a strong pipeline We continued to roll out our behavioural framework (the Leadership Imperatives) to all employees by establishing target behaviours to “adapt at speed”, “be courageous” and ”create joint movement“. In 2020 alone, we provided training on leadership skills to 2 432 managers, with an average of 11.7 hours invested per manager.
At Swiss Re, people are always ready to support each other.
* In 2018, we began changing Swiss Re’s learning landscape with LearningOne and adopted a new learning philosophy, which gives our employees access to bite-sized learning nuggets at their convenience. We no longer track these learning hours as of 2018.
** In 2020, many classroom training sessions were cancelled due to COVID-19, and fewer training sessions were conducted, which resulted in a drop in learning costs per employee.
Employee relations Many of our locations have active employee advocacy groups, in line with local practice, that contribute to the company’s success by offering valuable perspectives and by helping us identify employment-related challenges. These bodies are elected by local employees and have clearly defined information and consultation rights. Although there are significant local differences in the applicable legislation, the advocay groups’ rights typically concern working conditions, benefits, reorganisation and restructuring, redundancies, disciplinary actions and conflict cases. We support and appreciate the cooperation with these groups.
At our Zurich headquarters, where almost one quarter of our employees is employed, we work closely with the Personnel Committee (PECO), which represents the interests of our Swiss-based employees. PECO is involved in changes or adaptations to the General Working Conditions or other important policies, such as the Social Plan. It also focuses on gender parity as well as challenges faced by employees with family obligations. In the UK, similar activities are carried out by the Employee Liaison Group (ELG), and our Munich office has a works council with clearly defined code termination rights in several areas. Other offices in Europe (eg in France, Italy, Luxembourg and Denmark) also have work councils or staff delegates, depending on the size of the branch and local regulations.
To learn more about our graduates programme, please visit our website.
We are delighted that our actions towards reaching our vision on the future of learning were recognised in 2020 with the HR Excellence Award for the Best Learning & Development Strategy.
Our compensation framework is designed to attract, motivate and retain the qualified talent we need to succeed globally, and to create a tangible link between performance and pay. We aim to provide compensation that is competitive in local labour markets to ensure that our employees focus on delivering outstanding results while supporting appropriate and controlled risk-taking.
Monetary and non-monetary recognition to acknowledge individual employees for extraordinary efforts and behaviours takes place throughout the organisation via several recognition schemes. Employees also have access to attractive benefit programmes. The comprehensive offering of reward components contributes to a performance culture where employees are motivated, protected and engaged to make the world more resilient and focus on client needs.
• Swiss Re is a signatory to "Time to change", a pledge to end mental health discrimination. It is based in the UK but we have signed the pledge in line with our global ambition.
Own The Way You WorkTM enabled a smooth transition to working from home during the COVID-induced pandemic measures: In the April 2020 edition of our Employee Engagement Survey, 92% of respondents agreed that the programme enabled them to adjust and remain productive during the pandemic.
• Employees in all locations can volunteer to become Mental Health Champions. We now have a global network of 160 Mental Health Champions who raise awareness of mental health challenges among employees, challenge mental health stigma and provide peer support to colleagues.
Our COyou2 Programme, launched in 2007, has continued to offer our employees subsidies for a range of climate-friendly technology investments through which they can reduce their private carbon footprints. The programme was terminated at the end of 2020, and a follow-up programme will be rolled out in 2021.
Inclusion & Diversity achievements in 2020 included: • Gender: For the second time, Swiss Re was included in the Bloomberg Gender Equality Index in 2020.
• Race and ethnicity: We worked with external partners to attract people of different ethnicities to the insurance industry. Internally, we created platforms to improve awareness and facilitate dialogue, such as our “Being Black in America” virtual town hall in June 2020 with around 1 800 participants. Mosaic, our network for racial and ethnic diversity, has launched active chapters in the US, Mexico, South Africa, Switzerland and the UK.
Launching a new Inclusion & Diversity plan Our approach to Inclusion & Diversity (I&D) evolves as we continue to build our corporate culture. For several years Swiss Re has focused on gender diversity and LGBTI+, and we will continue to invest in these areas. The Black Lives Matter movement, which gained momentum in 2020, generated an intense debate about race and ethnicity, including at Swiss Re. Considering these events, we believe that there is a need to reflect on our progress and the long road ahead for us, and to accelerate our I&D efforts.
Women in leadership We use the gender promotion ratio as an internal performance metric. The aim is to ensure that the proportion of women promoted into management and above is at least equal to the proportion of women in the “donor pool”. We recognise that women continue to be underrepresented in our executive and senior management and are committed to monitoring and actively improving on our gender equality metrics. We do so through specific actions, such as our diverse candidate slates and selection panels. We also use a self-service online tool that helps to improve and remove biases from the language used in job descriptions in order to attract more diverse talent. All of our guidelines on recruiting are designed to help managers make fair and unbiased decisions.
Executive/senior management positions* 24.5 26.7 28.7 All management positions** 34.0 35.1 35.7 * Executive/senior management positions comprise the management levels of Director/Senior Vice President and upwards.
The figures for 2018 and 2019 have been restated due to the sale of our ReAssure business in the UK.
This year we conducted two employee surveys: the first, a pulse survey carried out in April 2020 in response to the outbreak of the COVID-19 pandemic, aimed to gain a better sense of our employees’ wellbeing. The second survey, conducted in September 2020, was broader in scope and focused on themes such as engagement, agile culture, organisational and personal resilience, inclusive culture, and risk and integrity.
Wellbeing pulse survey, April We were pleased to see that most of our employees (89%) experienced a consistently positive level of wellbeing.
Most of our employees believe the care with which decisions to close the office were made, along with timely and transparent communication and work support they received, had a strong positive impact on their resilience.
Employee survey, September We saw strong results with a significant increase in employee engagement at 71% (+8 points since 2019), the highest score since we started measuring in 2015, bringing Swiss Re above the industry benchmark.
Whistleblower programme Swiss Re is committed to maintaining the highest standards of honesty and accountability. We therefore encourage our employees to tell us if anyone within Swiss Re or connected to Swiss Re is, or is suspected of, acting illegally, improperly or unethically. In line with our Code of Conduct, we foster a culture of speaking up on discrimination and harassment and provide training and awareness sessions on these topics.
Environmental, social and governance (ESG) issues have grown in importance and become key focus areas in Europe, the US and other jurisdictions.
Swiss Re’s corporate governance framework The Board of Directors (BoD) has ultimate responsibility for the success of Swiss Re Ltd and the Group within a framework of effective and prudent controls. It is responsible for the overall direction, supervision and control of Swiss Re Ltd and the Group and of the Group Executive Committee (Group EC), as well as for supervising compliance with applicable laws, rules and regulations. Such responsibilities cannot be delegated and therefore rest with the entire BoD. The BoD has delegated the management of Swiss Re Ltd and the Group to the Group EC. This corporate governance framework ensures sustainability, fosters transparency and facilitates a quality assessment of the Swiss Re Group’s organisation and business.
2020 highlights: • Formally integrated sustainabilityrelated performance targets into compensation framework.
• 87% of employees felt that if misconduct had been, or was being committed, they would know how to report it (ie whistleblowing).
Swiss Re’s corporate governance and compliance are based as much on sound frameworks and policies as on a spirit of transparency and integrity.
Swiss Re’s corporate governance documents Swiss Re’s Code of Conduct provides key principles that guide Swiss Re in making responsible decisions and achieving results using the highest ethical standards. It is built on the five Swiss Re values: integrity, team spirit, passion to perform, agility and client centricity (see section “Compliance” to the right).
The Corporate Governance Guidelines set out Swiss Re’s harmonised governance principles and standards, ensuring a consistent and tailored corporate governance approach across the Group.
We have set up a governance framework to develop, enhance, implement and monitor our Group Sustainability Strategy.
At Swiss Re’s highest governance level, the BoD is responsible for overseeing the development and adoption of the Group Sustainability Strategy and related policies. It has assigned detailed sustainabilityrelated responsibilities to four BoD committees (see graph).
On an operational level, the business and many Group Functions have defined their own sustainability bodies, dedicated roles and built up networks to implement our Group Sustainability Strategy. In 2020, we also created a new team that drives the implementation of the Group Sustainability Strategy and related initiatives across the Group.
Sustainability-related targets linked to compensation To further embed sustainability in all our business activities, we have continued to strengthen the link between remuneration and sustainability performance. As part of our Group Sustainability Strategy implementation, we introduced sustainability as an additional qualitative assessment dimension for determining our Group Annual Performance Incentive (API) pool. This establishes a clear connection between sustainability targets and compensation for all employees, including the Group EC.
Assurance Assurance activities to monitor adherence to the Code are a core part of our Compliance Programme. Compliance performs independent risk-based monitoring to ensure the adherence to and the efficiency of processes and controls mitigating our key compliance risks across Swiss Re. In 2019, we implemented a new data-driven strategy to set the foundation for continuous monitoring. In 2020, efforts to develop and implement our data-driven strategy to support us in identifying and generating meaningful insights continued.
We recently implemented a new data analytics dashboard to support assurance activities by improving the monitoring capabilities of the framework. It provides an overview of gift and hospitality register entries and supplements other existing reports.
Various regulators around the world have started to evaluate the need for regulations on the topic of big data/digital ethics or have issued initial guidelines. Swiss Re actively engages in discussions with regulators by participating in regulatory expert groups, contributing to studies and reports, as well as giving feedback to consultations and responding to regulatory questionnaires.
The DGF is Swiss Re’s one-stop solution that calibrates all relevant risk assessments and regulatory requirement checks related to data, technology and security to ensure a well-defined risk mitigation plan for trustworthy and sustainable digital services. It ensures adherence to internal policies for the compliant and fair use of data, the compatibility between existing IT architecture and new technologies and the security of digital services developed in-house or offered by third parties.
The European Insurance and Occupational Pension Authority (EIOPA) has appointed a Swiss Re representative to its consultative expert group for digital ethics and to chair the workstream on fairness and nondiscrimination. The outcomes of this work are expected to be published later in 2021.
Our Global Frameworks on Anti-money Laundering and Sanctions are supported by a Global Policy on Financial Crime and Sanctions and set out in detail key requirements and guidance in relation to our sanctions, anti-money laundering and counterterrorism financing efforts, including the reporting of any suspicious activities.
Reporting misconduct, whistleblowing and investigations Swiss Re is strongly committed to maintaining a culture in which employees feel free to voice their concerns and report suspected misconduct. Accordingly, Swiss Re explicitly prohibits any retaliatory action against employees who report suspected misconduct in good faith and has implemented processes to support reporting. In 2020, training and awareness campaigns were launched to help nurture a “speak up” culture. Training was provided to line managers to support them in handling misconduct allegations received from employees. An internal awareness campaign featuring real Swiss Re misconduct cases titled “#SpeakUp”, was published to further employee understanding of the investigation process, encourage them to speak up if they suspect misconduct has occurred and remind them of all available reporting channels. A total of 87% of employees felt that if they thought misconduct had been or was being committed, they knew how to report it (ie whistleblowing).
Misconduct cases are systemically presented and discussed with the Group Executive Committee, the Group Board, the Group Audit Committee as well as with legal entity boards as part of reports. In 2020, ICP cases reflected the following indicators: • 76 cases were investigated by ICP in 2020 and 68 were closed. • Of the 68 cases closed in 2020, 69%
• Disciplinary actions, including termination, written warnings, verbal warnings and performance rating adjustments, were taken in 22% of substantiated cases. The relatively low percentage of such actions should not be taken as an indication of a weak Compliance culture. It is important to note that each investigation is fact- and circumstance-specific. There are certain circumstances where disciplinary actions are nearly always imposed, such as where active employees are found to have engaged in intentional misconduct. However, there are also circumstances where allegations are substantiated but may not lead to disciplinary action, such as cases involving unintentional breaches, cases where the perpetrator(s) cannot be identified, and cases involving external fraud. In cases involving unintentional conduct, in lieu of disciplinary action, non-disciplinary recommendations will be made, such as additional training activities or increased supervision.
In addition, local compliance officers regularly provide needs-based training on compliance risks tailored to their respective locations and/or areas of business.
Validity for third parties Third parties representing Swiss Re – such as consultants, intermediaries, distributors and independent contractors – should be carefully selected and need to comply with the Code and relevant policies. When we work with such third parties, we provide them with information about the relevant requirements and, in the event of any infringements, take appropriate action, up to and including terminating a contract.
Completion of the training is tracked, and instances of non-completion are escalated until resolution.
In March 2020, the annual attestation process was launched for all permanent and temporary employees to acknowledge personal accountability for complying with specific requirements related to the Code and Global Compliance Policies and Standards. These include, for the avoidance of doubt, responsibility for personal conflict of interest and gift and hospitality register disclosures.
Furthermore, we are committed to being a leader in international tax transparency discussions.
Sustainable Business Risk Framework (including policies on Human Rights and Environmental Protection)
Our policies On some specific topics, we provide transparency by publishing full policies or statements on our website.
The Swiss Re Foundation’s vision is to help societies build capacity to mitigate health, environmental and economic risks, as well as recover quickly from setbacks. We do this in emerging countries and where Swiss Re has office locations.
The Swiss Re Foundation’s global set-up meant the pandemic was a concern for us at an early stage. Starting in Asia, it ultimately became a defining event in all our partner countries. To this day, many of our partner organisations are still suffering from the direct and increasingly indirect consequences of the pandemic.
The Swiss Re Foundation in 2020 The report highlights two partnerships that illustrate our goals, approaches and impacts within the two priority themes, enhancing disaster risk reduction at the community level and fostering coastal resilience.
How we‘re helping at-risk communities protect themselves from natural hazards and climate risks on page 4
Grant support for COVID-19 82 partners supported with COVID-19 grants 29 countries supported with COVID-19 grants
Carbon emission intensity Unit 2013 (baseline) 2018 2019 2020 % vs 2013
Carbon emissions (Scopes 1 – 3) Unit 2013 (baseline) 2018 2019 2020 % vs 2013
of which from business travel CO2e tonnes 50 266 61 188 62 915 22 926 –54% of which from commuting CO2e tonnes 14 030 13 601 13 058 6 486 –54% of which from other CO2e tonnes 2 191 1 523 1 234 652 –70% Carbon certificate amount CO2e tonnes 60 942 69 343 70 303 27 249
Distance travelled per employee km/FTE 13 581 14 348 14 271 6 020 –56%
Criteria The management reporting processes with respect to the sustainability reporting 2020 were assessed against the internal and external policies and procedures as set forth in the following: • “Internal Environmental Performance
Swiss Re’s responsibility The Executive Management of Swiss Re is responsible for both the subject matter and the criteria as well as for selection, preparation and presentation of the selected infor-mation in accordance with the criteria. This responsibility includes the design, implementation and maintenance of related internal control relevant to this reporting process that is free from material misstatement, whether due to fraud or error.
Our responsibility Our responsibility is to perform a limited assurance engagement to express a conclusion on the sustainability indicators.
We planned and performed our procedures in accordance with the International Standard on Assurance Engagements (ISAE 3000) (Revised), ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’, and, in respect of greenhouse gas emissions, with the International Standard on Assurance Engagements (ISAE 3410), ‘Assurance Engagements on Greenhouse Gas Statements’, issued by the International Auditing and Assurance Standards Board. These standards require that we plan and perform this engagement to obtain limited assurance on the identified sustainability indicators, in all material aspects, in accordance with Swiss Re’s policies and procedures.
Summary of the work performed Our assurance procedures included, amongst others, the following work: • Evaluation of the application of Swiss Re’s sustainability reporting guidelines Assessing whether the methodology applied by Swiss Re is in line with the reporting criteria; • Interviews and management inquiry Evaluating the sustainability reporting and underlying performance indicators by performing analytical procedures and interviewing selected key contacts to assess whether the internal Environmental Performance Indicators Reporting guidelines and sustainability guidance were consistently applied by the selected locations; Performing inquiries of personnel responsible for internal sustainability reporting and data collection at the Swiss Re corporate level to evaluate the reporting and aggregation process and to assess its appropriateness; • Reconciliation of CO2 emissions data Reconciling the CO2 emissions data for energy consumption, business travel, copy paper, waste, water, technical gases and commuting and sustainability data and information to the data used for the internal sustainability reporting of the selected locations; • Assessment of the key figures Performing tests on a sample basis of evidence supporting selected sustainability data and information (natural catastrophes and climate change, the commitment to the United Nations, the commitment with Women’s World Banking, decarbonising the business model, the sustainable business risk framework, emerging risks, responsible investments, engagement with stakeholders, CO2 emissions and reductions, energy consumption for heating and electricity, business travel data, sustainable supply chain data, the COyou2 subsidies, HR data and information, diversity and inclusion, employee health data) to assess their completeness, accuracy, adequacy and consistency; • Review of the documentation Reviewing the relevant documentation on a sample basis, including Swiss Re’s sustainability-related policies, the management of reporting structures, the documentation and systems used to collect, analyse and aggregate reported sustainability data and information; • Assessment of the processes and data consolidation Reviewing the appropriateness of the management and reporting processes for sustainability reporting; and assessing the processing and consolidation of data at Swiss Re’s Group level; and
Listed here is a selection of Swiss Re’s most important memberships, commitments and index listings with regard to sustainability.
Insurance Development Forum (IDF) The IDF is a public-private partnership led by the insurance industry and supported by international organisations. It aims to optimise and extend the use of insurance and its related risk management capabilities to build greater resilience and protection for people, communities, businesses, and public institutions that are vulnerable to disasters and their associated economic shocks. www.insdevforum.org
Powering Past Coal Alliance (PPCA) The PPCA is a coalition of national and sub-national governments, businesses and organisations working to advance the transition from unabated coal power generation to clean energy. www.poweringpastcoal.org
In partnership with the Alliance to Save Energy, The Climate Group’s EP100 initiative brings together a growing group of energysmart companies committed to improving their energy productivity and doing more with less. www.theclimategroup.org/project/ep100
World Business Council for Sustainable Development (WBCSD) The WBCSD is a global, CEO-led organization of over 250 leading businesses working together to accelerate the transition to a sustainable world. www.wbcsd.org
Dow Jones Sustainability Indices, member of DJSI World Index, DJSI Europe Index
Contact address Group Sustainability Reto Schnarwiler Telephone +41 43 285 4801 Reto_Schnarwiler@swissre.com
Baleària (p. 30) Lead Foundation – Women’s World Banking (p. 33) Swiss Re; Mischa Repmann (p. 60) Fredi Lienhard (p. 71) Blaubox Studio (p. 75) Amanda Cheng (p. 78) S. Aloliby/ICRC (p. 88)