Net-Zero Asset Owner Alliance and Net-Zero Insurance Alliance: Achieving net zero requires a massive effort and active dialogue across value chains. To emphasise its commitment to decarbonising its business, Swiss Re is a founding member of two alliances: the UN-convened Net-Zero Asset Owner Alliance (AOA) and the UN-convened Net-Zero Insurance Alliance (NZIA). In alignment with the AOA’s inaugural Target Setting Protocol released in 2021, Swiss Re set ambitious intermediate targets to reduce the carbon intensity of its listed equities and corporate bond portfolio by 2025. In addition, the NZIA will enable insurers to individually set science-based intermediate decarbonisation targets for their underwriting portfolios.
WEF Alliance of CEO Climate Leaders: The WEF Alliance of CEO Climate Leaders is the largest CEO-led alliance in the world and is currently co-chaired by Swiss Re’s Group CEO Christian Mumenthaler. The alliance works on concrete climate action aligned with the Paris climate agreement and is a catalyst to lead and drive change in the race to net zero. Mumenthaler represented the alliance at COP26 to encourage world leaders to take decisive and more aggressive steps towards reaching net zero.
Full phase-out of thermal coal has begun: In 2021, Swiss Re moved ahead with its new exit strategy for thermal coal in treaty re/insurance, complementing its existing strategy for direct and facultative business established in 2018. In 2023, Swiss Re aims to tighten its coal policy by introducing new thermal coal exposure thresholds for treaty re/insurance across property, engineering, casualty, credit & surety and marine cargo lines of business. The thresholds will be tightened gradually and are expected to lead to a complete phase-out of thermal coal exposure in OECD countries by 2030 and in the rest of the world by 2040.
Partnering with Climeworks: In 2021, Swiss Re partnered with Climeworks, a leading specialist in carbon dioxide air capture technology. As part of the collaboration, Swiss Re buys carbon removal services and gains access to the new carbon removal risk pool and asset class. This is the world’s first long-term purchase agreement for direct air capture and storage, worth USD 10 million over ten years, providing Climeworks with future revenue that improves the bankability of their scale-up roadmap.
