Managing nature- and biodiversity-related risks through our ESG Risk Framework

A pioneering study published by Swiss Re Institute in 2020 found that over half of global economic activities depend on intact biodiversity and ecosystem services (BES). However, these services are in serious decline in many regions around the world. Swiss Re regards nature and biodiversity loss, and climate change as twin challenges to be addressed with high priority.

We have been addressing nature- and biodiversity-related risks through our ESG Risk Framework and its precursors for many years. For example, since 2014 we have been excluding entities or projects that operate in UNESCO World Heritage sites and/or protected areas, including High Conservation Value forests, High Carbon Stock forests, wetlands protected by the Ramsar Convention and IUCN list of protected areas and habitats for the species on the IUCN Red List.

In our former Forestry, Pulp & Paper and Oil Palm Policy, we set sustainability certification requirements for timber and oil palm plantations and processing facilities with a particularly high risk exposure.

In 2021, we revised this sector policy and reissued it as our expanded Agriculture, Forestry and Food Policy. The policy provides the basis for systematically identifying and managing entities that potentially have a strong negative impact on nature and biodiversity. Furthermore we have expanded the policy’s scope to cover the full agriculture and food value chain.