Enhancement

Enhancement refers to the systematic integration of ESG considerations along the entire investment process, from Strategic Asset Allocation (SAA) to monitoring and reporting. ¹ Based on the risk-adjusted return profiles tracked by Swiss Re, including ESG criteria in investment portfolios can be financially beneficial, especially over the long term.  

Swiss Re strives to invest in issuers that are addressing sustainability-related risks and opportunities by taking into account their exposure and ability to manage such risks.  

Swiss Re defines and contractually agrees its ESG rating requirements with the investment managers of the corresponding mandates. Swiss Re has a dedicated investment due diligence framework for selecting and monitoring external investment managers for adherence to its responsible investing expectations. This framework evaluates how managers integrate ESG factors into their investment decisions and monitoring, as well as their broader commitment to responsible investing. Assessment criteria include governance, policies, resources, ESG philosophy and integration, stewardship, portfolio monitoring and reporting, memberships and disclosure practices.

Swiss Re's internally developed Engagement Framework is designed to encourage investee companies to achieve long-term sustainability-related goals while strengthening long-term business performance.

Swiss Re has been working closely with its external investment managers to execute the Engagement Framework across all of its in-scope mandates. Targets have been set for engagement frequency and desired outcomes. The investment managers are contractually required to report to Swiss Re on their progress and highlights of their engagement activities on a semi-annual basis.