UNEP FI Principles for Sustainable Insurance (PSI): disclosure of progress

Developed by the UN Environment Programme’s Finance Initiative (UNEP FI) in collaboration with leading re/insurance companies, the Principles for Sustainable Insurance (PSI) provide a framework for the global insurance industry to address environmental, social and governance (ESG) risks and opportunities.

Swiss Re and the PSI

We are keen to support the spread of sustainable business practices in the re/insurance industry. Not only are we one of the original signatories to the Principles of Sustainable Insurance, we have played an active role in their development and currently provide one of its board members.

We support the PSI’s call for transparency and disclose our progress on implementing its principles below.

Principle 1

We will embed in our decision-making environmental, social and governance (ESG) issues relevant to our insurance business.

As described in “Our approach to sustainability”, we seek to address ESG issues through our re/insurance solutions, embed them in our risk management, and integrate ESG criteria in our asset management (see About the organisation of this report).

We plan to achieve this by:

Implementing a Group Sustainability Strategy with the help of a dedicated governance framework
Developing innovative re/insurance solutions (eg index insurance products and cat bonds) and by working closely with partners both in the private and public sectors
Using tailor-made tools in our risk management to address sustainability risks
Pursuing a comprehensive Responsible Investing strategy in our asset management
Decarbonising our entire business to achieve net-zero emissions both in underwriting and asset management by 2050

Key actions taken in 2021:

For our Group Sustainability Strategy and sustain, see summary of achievements described in Sustainability Topics: goals and progress and for our sustainability governance, see achievements described in Ensuring good corporate governance and compliance.
For re/insurance solutions, see achievements described in Creating solutions for sustainability.
For risk management, see achievements described in Extending our risk intelligence and Our ESG Risk Framework in particular
For asset management, see achievements described in Being a responsible investor.
For efforts to decarbonise our business, see Decarbonising our business model, Being a responsible investor: Climate action and our climate-related financial disclosures in our Financial Report 2021.

Principle 2

We will work together with our clients and business partners to raise awareness of ESG issues, manage risk and develop solutions.

As described in our “Approach to sustainability”, we engage in regular dialogue with our clients and other stakeholders, act as and apply ESG guidelines in our sourcing activities (see About the organisation of this report).

We plan to achieve this by:

Interacting with clients and taking an active role in industry initiatives to advance sustainable business practices
Engaging as a responsible investor
Sharing and advancing our risk expertise with a special focus on our 2030 Sustainability Ambitions, supported by Swiss Re Institute
Applying an overarching sourcing standard and conducting ESG assessments in our supply chain

Key actions taken in 2021:

For client and industry cooperation, see achievements described in ESG Risk Framework.
For our engagement as a responsible investor, see achievements described in How we engage
For general risk dialogue, see achievements described in Engaging in dialogue with our stakeholders.
For our sourcing standard and ESG assessments of suppliers, see achievements described in Sustainability in our supply chain.

Principle 3

We will work together with governments, regulators and other key stakeholders to promote widespread action across society on ESG issues.

As described in our “Approach to sustainability”, we engage in regular dialogue with all our stakeholders (see About the organisation of this report).

We plan to achieve this by sharing and advancing our risk expertise with a special focus on our 2030 Sustainability Ambitions, supported by Swiss Re Institute.

Key actions taken in 2021:

See stakeholder dialogue achievements in Engaging in dialogue with our stakeholders and on swissre.com: Collaboration with (inter-)governmental and academic institutions

Principle 4

We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.

Starting in 2012, we have been disclosing our progress in implementing the Principles on an annual basis, as an integrated part of our sustainability reporting, consisting of our Sustainability Report 2021 and our climate-related financial disclosures (TCFD) in our Financial Report 2021.