Swiss Re announces ambitious climate targets; accelerates race to net zero (english)

    Swiss Re announces ambitious climate targets; accelerates race to net zero

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EQS Group-News: Swiss Re Ltd / Key word(s): Sustainability
Swiss Re announces ambitious climate targets; accelerates race to net zero

16.03.2021 / 07:00

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  * Swiss Re announces ambitious carbon reduction target for its investment
    portfolio of 35% by 2025

  * The Group moves ahead with full phase-out of thermal coal; new exit
    strategy in treaty re/insurance by 2030 (OECD) and 2040 (rest of the
    world)

  * As first multinational company, Swiss Re introduces a triple-digit real
    internal carbon levy for own operations

Zurich, 16 March 2021 - Swiss Re today announced new measures to support the
transition to a net-zero economy, encompassing both asset management and
underwriting as well as its own operations.

Swiss Re's Group Chief Executive Officer, Christian Mumenthaler said:
'Climate change remains the biggest challenge we face as a society. The
stakes are high and require immediate attention. Signing up to net-zero
emissions by 2050 and setting concrete climate targets are important first
steps. What needs to follow now is action. We are moving ahead in all areas
of our business to accelerate the transition towards net zero.'

Ambitious carbon reduction targets for investment portfolio
As a founding member of the UN-convened Net-Zero Asset Owner Alliance, Swiss
Re has committed to transition its investment portfolio to net-zero
greenhouse gas emissions by 2050. Today, Swiss Re announced concrete targets
for how to achieve this:

  * 2025 carbon intensity reduction target of 35%1 for corporate bond and
    listed equity portfolio; direct real estate portfolio already ahead of
    1.5°C pathway by 2025.

  * Long-term objective to exit coal-based assets for the portfolio by 2030.

  * Swiss Re will systematically engage with portfolio companies on
    developing climate strategies as part of a broader engagement framework.

  * Target to increase investments in renewable and social infrastructure by
    USD 750 million. In addition, target to expand green, social and
    sustainability bond exposure to USD 4 billion by the end of 2024 (from
    USD 2.6 billion at end of 2020).

  * Swiss Re will report on progress towards targets on an annual basis.

The ambitious targets build on the already substantial decrease of the
carbon intensities in Swiss Re's corporate bond and listed equity portfolio
of around 30% between 2015 and 2018.

Guided by a systematic climate approach
The new targets have been defined in accordance with science and the
Net-Zero Asset Owner Alliance Target Setting Protocol, which Swiss Re played
an instrumental role in developing, and which serves as a guide for the
Alliance members.

To further increase transparency of its actions, Swiss Re has advanced its
climate approach in Asset Management focusing on the following four steps to
mitigate climate related risks, while supporting the net-zero transition of
the economy:

  * Set targets: Define targets to reach net-zero emissions in alignment
    with 1.5°C by 2050 at the latest.

  * Take Actions: Actively manage transition and physical risks, and support
    real economy transition to net zero.

  * Measure: Measure and monitor trajectory of needed development towards
    net zero.

  * Report: Inform shareholders and other stakeholders transparently on
    developments.

Taking action includes expanding Swiss Re's green, social and sustainability
bond exposure to USD 4 billion - an ambitious target within the industry
relative to total assets under management and increasing social and
renewable infrastructure investments by USD 750 million.

Another measure that Swiss Re has implemented is the aspirational and new
framework to engage with companies in the equity portfolio. This includes
taking an active dialogue with them to limit global warming to 1.5°C.

Guido Fürer, Swiss Re's Group Chief Investment Officer said: 'We believe
that by engaging with the real economy and supporting the companies we
invest in to develop a climate strategy and to manage related risks, we will
improve our risk-adjusted returns, while also propelling the transition to a
net-zero emissions economy.

'While we have already made considerable progress by substantially cutting
CO2 emissions of our portfolio, today's announcement is another important
step in the race to net-zero. As asset owners we can play a meaningful role,
and I'm pleased to see momentum building amongst the investor community.'

Complete phase out of thermal coal in re/insurance
With an update of its thermal coal policy, Swiss Re is accelerating its move
to net-zero in insurance underwriting. In 2023 Swiss Re will tighten its
coal policy by introducing new thermal coal exposure thresholds for treaty
re/insurance across its property, engineering, casualty, credit & surety and
marine cargo lines of business. The thresholds will be lowered gradually and
will lead to a complete phase out of thermal coal exposure in OECD countries
by 2030 and in the rest of the world by 2040.

The thermal coal policy was established in 2018. It marked a first step
towards a comprehensive carbon steering mechanism with the goal to
transition Swiss Re's re/insurance business to net-zero emissions by 2050.
The coal policy is part of the Group's Sustainable Business Risk Framework
which was established already in 2009.

In 2020, Swiss Re revised the oil and gas policy in the same framework and
in the beginning of 2021 gradually started withdrawing insurance support
from the most carbon-intensive oil and gas production.

Strategy of 'do our best - remove the rest' to achieve net-zero emissions
from own operations by 2030
For its own operations Swiss Re is committed to achieving net-zero emissions
already by 2030, focusing primarily on emission reduction measures as part
of its strategy to 'do our best'. Since 2020, Swiss Re is sourcing 100% of
its power from renewable sources. To prevent going back to the pre-pandemic
travel intensity, Swiss Re has set itself a 30% reduction target for flight
emissions for 2021, relative to the 2018 level.

On top of that, Swiss Re is the first multinational company to introduce a
triple-digit real internal carbon levy on both direct and indirect
operational emissions (such as from business travel). The new Carbon
Steering Levy has been set at USD 100 per tonne CO2 as of 2021 and will
gradually increase to USD 200 per tonne CO2 by 2030. The levy gives Swiss Re
a strong incentive to further reduce its operational emissions. It also
provides a 10-year funding scheme to move from carbon offsetting to
supporting carbon removal projects enabling the compensation of any
unavoidable emissions in line with its 'remove the rest' strategy.

Swiss Re has already started to engage in the emerging carbon removal
market. In 2019 the Group participated in the world's first auction for
negative emission certificates, and last year signed a collaboration
agreement with Climeworks, one of the world's leading direct carbon air
capture companies.

Selected climate commitments and initiatives of Swiss Re

  * Paris Pledge for Action www.parispledgeforaction.org

  * UN Global Compact Business Ambition for 1.5°C www.unglobalcompact.org

  * UN-convened Net-Zero Asset Owner Alliance
  www.unepfi.org/net-zero-alliance

  * FSB Task Force on Climate-related Financial Disclosures www.fsb-tcfd.org

  * WEF Alliance of CEO Climate Leaders
    www.weforum.org/projects/alliance-of-ceo-climate-leaders

  * Powering Past Coal Alliance Powering Past Coal Alliance (PPCA)

  * RE100 initiative www.theRE100.org

1Relative to 2018


Swiss Re
The Swiss Re Group is one of the world's leading providers of reinsurance,
insurance and other forms of insurance-based risk transfer, working to make
the world more resilient. It anticipates and manages risk - from natural
catastrophes to climate change, from ageing populations to cyber crime. The
aim of the Swiss Re Group is to enable society to thrive and progress,
creating new opportunities and solutions for its clients. Headquartered in
Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group
operates through a network of around 80 offices globally.

For further information please contact Swiss Re Media Relations: + 41 (0)43
285 7171 or [e-mail].
Please use this link to access the Swiss Re website.

Cautionary note on forward-looking statements
Certain statements and illustrations contained herein are forward-looking.
These statements (including as to plans, objectives, targets, and trends)
and illustrations provide current expectations of future events based on
certain assumptions and include any statement that does not directly relate
to a historical fact or current fact. Further information on forward looking
statements can be found in the Legal Notice section of Swiss Re's website.

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   Language:       English
   Company:        Swiss Re Ltd
                   Mythenquai 50/60
                   8022 Zurich
                   Switzerland
   Phone:          [phone]
   E-mail:         [e-mail]
   Internet:       www.swissre.com
   ISIN:           CH0126881561
   Valor:          12688156
   Listed:         SIX Swiss Exchange
   EQS News ID:    1175828



   End of News    EQS Group News Service
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1175828 16.03.2021

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