Swiss Re ‘stopped’ 23 deals lacking sustainability criteria
Swiss Re has revealed how it ‘stopped’ 23 business transactions going ahead last year because they failed to meet certain criteria around sustainability and corporate responsibility. A further 18 deals were temporarily halted until certain criteria could be met.
The world’s second biggest reinsurer makes the revelation in a report in which it details its commitments to sustainable business practices in the re/insurance industry and corporate responsibility.
In its 2012 Corporate Responsibility Report, Swiss Re explains it has reported against the Principles for Sustainable Insurance, a set of principles developed by the United Nations Environment Programme (UNEP) and other partners (including Swiss Re), for the first time. The principles are part of an initiative to advance sustainable business practices across the re/insurance industry.
The company said it has applied its commitment to corporate responsibility into tangible actions through the application of a group-wide Sustainability Risk Framework, which defines non-commercial sustainability criteria for business transactions.
Out of the 170 transactions screened in 2012, 23 transactions were stopped as a result because certain criteria were not met. In 18 cases, certain conditions had to be met first before the transaction could go ahead.
It also details other ways in which it has endeavoured to meet these principles. It notes that it remains committed to bringing insurance protection to vulnerable communities and has made a significant commitment to improve food security in Sub-Saharan Africa with weather and yield index insurance products.
Meanwhile, through the company's Greenhouse Neutral Programme, Swiss Re cut CO2 emissions per employee by 55.6 per cent between 2003 and 2012.
“This is the first time we have reported against the Principles for Sustainable Insurance, which we helped develop in cooperation with the UNEP Finance Initiative,” said Michel Liès, Swiss Re’s chief executive.
“We will also talk more about some of the challenges inherent in implementing sustainability in our business. This is because deriving concrete measures from general sustainability principles is not always straightforward.”
The four Principles for Sustainable Insurance (PSI) were developed by the Finance Initiative of UNEP in cooperation with leading re/insurers. Launched in 2012, they provide a global framework for the insurance industry to address both risks and opportunities arising from environmental, social and governance issues. The principles give guidance on how activities along the whole insurance value chain can be carried out in a responsible and forward-looking way.
