Our Sustainability Topics, SDG links, targets & key achievements
For all of our Sustainability Topics we have set targets – some of them quantitative, others qualitative. On the following four pages, we briefly describe why these topics are important for Swiss Re, their principal links to the UN Sustainable Development Goals, the targets we have set for them and what we achieved during the reporting year.
Mitigating climate risk and advancing the energy transition
The effects of climate change and global warming are already evident and shaking up our risk landscape: warmer average temperatures, rising sea levels, longer and more frequent heatwaves and more weather extremes. We continue to evolve our way of doing business towards a low-carbon economy in line with the Paris Agreement. Our key objectives are:
- We aim to become the leading re/insurance company on physical climate risk.
- We aim to become a leading provider of re/insurance solutions for low-carbon transition opportunities.
- We build partnerships to develop scalable solutions to mitigate and adapt to climate change.
Links to the UN Sustainable Development Goals*
Our targets
- Completed: Based on our commitment to the United Nations, advise 50 sovereigns and sub-sovereigns on climate risk resilience by 2020 and offer USD 10 billion of re/insurance protection against this risk.
- New: As a member of the Insurance Development Forum (IDF), collectively commit to offer up to USD 5 billion of risk capacity for climate risk insurance benefiting up to 500 million individuals by 2025.
- Use our capacity and technical expertise to provide effective risk covers for complex offshore wind farm projects.
- New: Achieve net-zero emissions across the Swiss Re Group by 2050.
Key achievements
- By the end of 2019, advised a total of 120 (sub-)sovereigns on climate risk resilience and offered them protection of USD 10.0 billion, thus meeting our commitment one year ahead of schedule (Our commitments).
- Were involved in further offshore wind farm projects, including the first large commercial project to be constructed in France and expanding our engagement in Taiwan, Asia’s most important market for offshore wind (Insuring offshore wind farms).
- Revised our oil and gas policy with the goal of shifting away from the most carbon-intensive oil and gas production in the next years (Towards decarbonising our business model).
Building societal resilience
Technological and economic development, population growth, ageing populations and other societal trends are putting people and assets in jeopardy. With our re/insurance solutions and investments we help reduce societal vulnerabilities. Our key objectives are:
- We provide affordable health and longevity solutions to our customers to ensure healthy lives and to promote wellbeing across all age groups.
- We support sustainable agriculture and enhance livelihoods across the re/insurance value chain through our risk knowledge and solutions.
- We facilitate sustainable and resilient infrastructure through our risk transfer products.
Links to the UN Sustainable Development Goals*
Our targets
- In cooperation with key stakeholders, create solutions to improve food security by giving farmers protection against natural perils.
- Advance our understanding of the societal impact of insurance and develop metrics to measure our impact on stakeholders.
- New: In partnership with Women’s World Banking, bring life and health insurance to two million low-income customers by the end of 2020.
Key achievements
- Completed a number of innovative transactions providing insurance protection to smallholder farmers against various natural perils, eg in Mexico, China and Cambodia (Transactions: Americas and Transactions: Asia-Pacific).
- Through our Group Sustainability Strategy further explored the relevance and implications of the UN Sustainable Development Goals for Swiss Re and how we can further align our activities with them, both in re/insurance and our investments (Group Sustainability Strategy and Inclusion).
- By the end of 2019, brought life and health insurance protection to 219 000 beneficiaries through our partnership with Women's World Banking (Our commitments).
Driving affordable insurance with digital solutions
Our customers are seeking quick, intuitive and streamlined digital experiences to make their lives safer and healthier. With our digital solutions we increase the availability and affordability of re/insurance and risk knowledge worldwide. Our key objectives are:
- We leverage technology to provide affordable cover for more types of risks across all income levels and ensure efficient claims handling.
- We apply smart analytics and devices to enhance our risk knowledge and advice to improve risk prevention, mitigation and crisis management.
- We develop digital best practices, integrate ethical aspects into our digital business and provide solutions to manage the risks of digital societies.
Links to the UN Sustainable Development Goals*
Our targets
- Refine our understanding of societal challenges related to the digital transformation.
- New: Increase our digitally enabled value propositions for people and businesses, using new and evolving technologies as well as analytical capabilities, eg in the area of agriculture and natural catastrophes.
Key achievements
- Continued our engagement in discussions with peers, regulators, academics and trade associations on how to embrace the opportunities offered by digitalisation in a responsible and ethical way (Driving affordable insurance with digital solutions).
Managing sustainability risks
Sound risk management is essential for a re/insurer. Besides the core categories of our risk landscape (insurance, financial market and credit risk), we also pay attention to other significant risks we may be exposed to, including sustainability risks. We define sustainability risks as ethical concerns related to potential environmental and socio-economic impacts of our business transactions, and the reputational risks they may entail. The risk assessments we make through our Sustainable Business Risk Framework, an advanced risk management instrument, flow directly into our re/insurance and investment decisions.
Links to the UN Sustainable Development Goals*
Our targets
- Adjusted: Consistently identify new sustainability risks, adapt the Sustainable Business Risk Framework accordingly and apply it to the full scope of our business.
- Adjusted: Increase the share of structured and automated sustainability assessments in the Sustainable Business Risk process.
- Engage with clients and industry partners on how to address and reduce sustainability risks in business transactions, especially in high growth markets.
Key achievements
- Continued with the implementation of our thermal coal policy and sharpened our oil and gas policy, with the goal of gradually decarbonising our business model (Towards decarbonising our business model).
- Recorded a small decrease in the number of transactions referred to our team of in-house experts for individual Sustainable Business Risk assessments (Our Sustainable Business Risk Framework).
- During 2019, had over 300 engagements with clients in the context of implementing our thermal coal policy (Our Sustainable Business Risk Framework).
Investing responsibly
Institutional investors such as re/insurers are naturally suited to invest responsibly because of the businesses’ long-term nature. Swiss Re systematically integrates environmental, social and governance (ESG) considerations along the investment process through its three-cornerstones approach: Enhancement (eg by applying ESG benchmarks), Inclusion (ie thematic investments) and Exclusion.
Links to the UN Sustainable Development Goals*
Our targets
- Integrate ESG criteria systematically along our overall investment process.
- Completed: Meet our investment target for green bonds of at least USD 1.5 billion.
- New: Hold at least USD 4 billion in green, social and sustainability bonds by the end of 2024.
- New: Achieve a net-zero greenhouse gas emission investment portfolio by 2050.
Key achievements
- At the end of 2019, close to 100% of our Strategic Asset Allocation considered ESG aspects (Enhancement).
- By the end of 2019, we held USD 1.8 billion in green bonds, exceeding initial goal (Inclusion).
Engaging our people
We want to be an organisation where diverse talents come together globally to apply fresh perspectives and knowledge to “make the world more resilient”. For this it is imperative that we build an engaged, inclusive and agile organisation. Throughout the year, we check-in with our employees through pulse surveys to measure progress, which also gives them an opportunity to engage in dialogue and share ideas for improvement.
Links to the UN Sustainable Development Goals*
Our targets
- Continue to build an engaged, inclusive and agile organisation.
Key achievements
- Sixty-eight percent of our employees are of the opinion that Swiss Re offers an environment that is open to and inclusive of individual differences (Listening to our employees).
- Fifty-nine percent of our employees are experiencing progress on developing a more agile culture (Listening to our employees).
Ensuring good corporate governance and compliance
We consider good corporate governance as a key precondition to ensure sustainability throughout the Group’s activities and indispensable to maintaining long-lasting, valuable relationships with our stakeholders. We conduct business in a legal, fair, ethical and transparent way by adhering to best practices at all times, and apply the principles of our Code of Conduct across all company lines and regions.
Links to the UN Sustainable Development Goals*
Our targets
- Continuously assess our corporate governance against regulatory developments, best practice and new stakeholder demands.
- Manage compliance risks through maintaining adequate frameworks, delivery of effective training and awareness to our employees and oversee effective implementation within the business.
Key achievements
- For an overview of key focus areas and highlights in 2019, see our 2019 Financial Report, Corporate Governance.
- Continued development of Compliance tools through new data analytics to improve assurance activities and build towards continuous monitoring of the Compliance Risk frameworks. Delivery of mandatory compliance training as well as risk-based targeted training also continued (Governance).
Reducing our footprint
As a leading global re/insurer, we are directly affected by the consequences of climate change. Based on our strong commitment to sustainability, we consider it important to reduce the environmental impact caused by our own operations, thus leading by example. Tackling our CO2 emissions and reducing energy consumption have been key targets across the Group, reflected by our pioneering initiatives such as the Greenhouse Neutral Programme, the COyou2 Programme and co-founding RE100. In 2019, we took another major step by committing to reach net-zero emissions in our operations already by 2030.
Links to the UN Sustainable Development Goals*
Our targets
- Until 2020, keep per-capita CO2 emissions from our own operations at 2013 levels, which we had reduced by 49.3% in the ten years since 2003.
- Reduce our energy intensity by an average 2% per year until 2020.
- Obtain 100% of power used for our own operations from renewable sources by 2020.
- Have our tier 1 and tier 2 vendors ESG-assessed by the end of 2020.
- New: Achieve net-zero emissions in our operations by 2030.
Key achievements
- By the end of 2019, achieved a further reduction of our per-capita CO2 emissions by 10.6% since 2013 (Our Greenhouse Neutral Programme).
- By the end of 2019, achieved an accumulated reduction in our energy intensity of 39.0% since 2013 (Our Greenhouse Neutral Programme).
- By the end of 2019, covered 92% of our power consumption from renewable sources (Our Greenhouse Neutral Programme).
- By the end of 2019, completed ESG assessment for 35% of our tier 1 and tier 2 vendors, and during 2019 re-assessed approximately 50% of assessed tier 1 and tier 2 vendors due to expired scorecards (Sustainability in our supply chain).
- In 2019, bought first batch of 100 tonnes carbon removal certificates (Focus: Moving from carbon offsets to carbon removal).
Empowering communities
The Swiss Re Foundation reflects the social and humanitarian values of Swiss Re. It partners with social entrepreneurs, aid organisations, researchers, Swiss Re employees and clients to help communities increase their resilience. The Foundation’s initiatives address the causes and effects of risks in three focus areas – climate risk management and natural hazards, access to health and income opportunities, and societal resilience – both in emerging and developing countries and in regions where Swiss Re has offices.
Links to the UN Sustainable Development Goals*
Our targets
- Contribute to resilient societies by increasingly engaging Swiss Re employees with their skills and expertise.
- New: By 2021, aim to have improved financial access to basic healthcare for a total of one million low-income people.
Key achievements
- Added two new components to our skills-based volunteering
programme. In total, Swiss Re expert volunteers supported our partners during more than 6 100 hours (for more information, see www.swissrefoundation.org). - By the end of 2019, had helped give 500 000 people access to healthcare (for more information, see www.swissrefoundation.org).
* Note: SDG 17 “Partnerships for the Goals” is important for most of our Sustainability Topics.