The Principles for Sustainable Insurance (PSI): OUR public 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 have provided its co-chair since 2012.

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 ESG issues relevant to our insurance business.

• As expressed in our Commitment to Corporate Responsibility, we seek to embed ESG issues in both our business solutions and risk management (see chapter “Materiality and our commitment”).
• We plan to achieve this by:
  1. developing innovative risk transfer solutions (eg index insurance products and cat bonds) and by working closely with partners both in the private and public sectors;
  2. using tailor-made tools in our risk management to address sustainability risks;
  3. integrating ESG criteria in our asset management.
• Key actions taken in 2014:
  1. for business solutions, see achievements described in chapter “Creating solutions for sustainability”;
  2. for risk management, see achievements described in chapters “Our Sustainability Risk Framework”, “Political risks”, “Regulatory risk” and “Emerging risks”;
  3. for asset management, see achievements described in chapters “The Resilience Action Initiative” and “Responsible investment”.

Principle 2

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

• As expressed in our Commitment to Corporate Responsibility, we engage in regular dialogue with our clients and other stakeholders, and apply ESG guidelines in our sourcing activities (see chapter “Materiality and our commitment”).
• We plan to achieve this by:
  1. interacting with clients and taking an active role in industry initiatives to advance sustainable business practices;
  2. sharing and advancing our risk expertise with a special focus on five Top Topics, supported by our own dialogue platform, the Centre for Global Dialogue;
  3. applying overarching guidelines and specific “minimum standards” in our sourcing activities.
• Key actions taken in 2014:
  1. for client and industry cooperation, see achievements described in chapter “Client and industry interaction”;
  2. for general risk dialogue, see achievements described in chapter “Exploring and shaping the risk landscape”;
  3. for sourcing guidelines, see achievements described in chapter “Group sourcing policy and minimum standards”.

Principle 3

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

• As expressed in our Commitment to Corporate Responsibility, we engage in regular dialogue with all our stakeholders (see chapter “Materiality and our commitment”).
• We plan to achieve this by: sharing and advancing our risk expertise with a special focus on five Top Topics, supported by our own dialogue platform, the Centre for Global Dialogue.
• Key actions taken in 2014: See stakeholder dialogue achievements in chapter “Exploring and shaping the risk landscape”.

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 Corporate Responsibility Report.

For more information see www.unepfi.org/psi/