Our Sustainability Risk Framework

In a market environment, profitable business activities create economic value. Occasionally, however, they may also adversely affect the environment and certain vulnerable groups. If such impacts are ignored, they may pose a threat to societies’ long-term sustainable development.

Mines can potentially have significant impacts on the environment and local communities. Our Sustainability Risk Framework includes a policy that clearly specifies the risks we examine before underwriting mining projects.

For companies this situation can bring dilemmas: A specific business transaction may be economically beneficial and perfectly fine from a legal and regulatory perspective, yet may have significant environmental or social downsides. Swiss Re recognises that such dilemmas exist and develops effective responses through a well-defined approach and by taking decisions based on ethical principles.

Our Sustainability Risk Framework is an advanced risk management instrument, specifically designed to identify and address the potentially negative effects of our transactions on local communities, workforces and the environment. This framework applies to all of our business transactions in re/insurance as well as investments, to the extent that we can influence their various aspects.

The Sustainability Risk Framework consists of:

• An overarching human rights and environmental protection policy plus seven policies on sensitive sectors or issues;
• The Sensitive Business Risk (SBR) process comprising an online assessment tool and a referral tool – due diligence mechanisms to assess our business transactions;
• Company exclusions; and
• Country exclusions beyond mere compliance with international trade controls.