• This is the ninth time Swiss Re has been named leader since 2004 • Announcement highlights Swiss Re's achievement in screening sustainability risks in its transactions and its work to develop solutions to address risk needs of urban and rural communities • 2014 Corporate Responsibility Report (CRR) provides a comprehensive update of Swiss Re's commitment and activities • Identifying long-term risk developments is key to Swiss Re's approach to sustainability; lack of infrastructure investment and autonomous cars named in CRR as developments to watch
Swiss Re remains the insurance industry sector leader in the Dow Jones Sustainability Indices (DJSI) for the second consecutive year and the ninth time since 2004. The company was particularly recognised for its work with several partners from the public and the private sector to research and develop solutions that address the risk needs of urban and rural communities. In addition, DJSI highlighted that the number of transactions screened for sustainability risks has doubled.
Michel Liès, Swiss Re's Group Chief Executive Officer says: "We are proud to be recognised by the DJSI. Sustainability is core to the re/insurance business and the foundation of long-term financial performance. We will continue to create innovative solutions that help our clients and society at large to tackle major sustainability-related risks. We take pride in this work and look forward to doing more. The cost of natural disasters and other risks grows each year while the share insured falls farther and farther behind. Helping to close this protection gap is good for Swiss Re, its shareholders, and for society at large."
A close link between sustainability and core business
Sustainability is woven into Swiss Re's core business processes, as shown by its Sustainability Risk Framework. The framework allows Swiss Re to identify sensitive business risks in its re/insurance underwriting as well as its investments, and to start a dialogue with clients on significant environmental, social and reputational concerns. In such cases, underwriters and asset managers are empowered to work with clients to address these issues – or to abstain from business.
DJSI key for investors who integrate sustainability considerations into their investment decisions
The DJSI were launched in 1999 as the first global sustainability benchmarks for corporations. The assessment consists of an in-depth analysis of economic, environmental and social factors that are relevant to the companies’ long-term financial success, but that are under-researched in conventional financial analysis. At least half of the assessment covers industry-specific risks and opportunities.
Documenting commitment and progress
The link between sustainability and Swiss Re's core business is illustrated in detail in Swiss Re's 2014 Corporate Responsibility Report (CRR). The CRR also serves as the company's Communication on Progress for the UN Global Compact and its Public Disclosure of Progress for the UN Principles for Sustainable Insurance (PSI). Swiss Re remains committed to both initiatives and will continue to play an active role in the PSI. The main content of the CRR was independently verified by PWC and is available on swissre.com.
The CRR details how Swiss Re supports clients in responding to environmental and social challenges by offering protection for large alternative energy projects, for example, and to pensions to cover longevity risk. Swiss Re also makes the benefit of re/insurance available to more and more people, notably by reaching beyond its traditional insurance and corporate clients to forge partnerships with the public sector, ie governments, supranational organisations, NGOs etc. The CRR describes in detail how Swiss Re helped such partners manage the risk of excessive rainfall, windstorms and floods.
Increasing focus on infrastructure investment and autonomous cars
The CRR also describes how Swiss Re aims to identify economic, social, technological and other trends which may take on greater significance over time, notably by identifying emerging risks. Swiss Re is increasing its focus on two such topics: insufficient infrastructure investment and new forms of mobility, in particular the advent of autonomous cars.
David Cole, Swiss Re's Group Chief Financial Officer, says: "More and more investors say sustainability measures are key to their investment decisions. We're proud to be able to point to our position in the DJSI. At Swiss Re we're committed to building long-term, sustainable value – and this recognition is further evidence of that."
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