Exclusion

Swiss Re’s approach to exclusion is based on our Group-wide Sustainable Business Risk Framework, which sets criteria for what Swiss Re considers acceptable business and may lead to exclusions of companies or countries from our investment universe. Detailed information is available in this report under Our Sustainable Business Risk Framework. Additionally, we consider the way companies conduct their business by screening their alignment with the ten principles of the UN Global Compact.

As part of the updated oil and gas policy of our Sustainable Business Risk Framework, we exclude the 10% most carbon-intensive companies in this sector. To mitigate the risk of stranded assets in the light of the accelerating transition to a net-zero economy, we also avoid investments in companies that generate 30% or more of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation. We have also divested from companies with more than 20% revenues from oil sands operations. Further strengthening our efforts, we introduced an absolute coal threshold in 2019: We are committed to not investing in mining companies that produce at least 20 million tonnes of coal per year and in power utility generators with more than 10 gigawatts of installed coal fire capacity.

Our long-term objective for 2030 is to fully exit coal-related assets such as coal mining and coal-based power generation, for our listed equities and corporate bond portfolio via normal portfolio reallocations. To increase efforts to mitigate transition risks in our portfolio, we have also begun to limit investments in companies active in coal mining or coal-based power generation that are planning to expand their capacity. We therefore apply a threshold for capital expenditures above USD 100 million for coal mining expansion and one of 300 megawatts for coal-fired capacity, applicable to the listed equities and corporate bond portfolio.