Case Study: Zurich Insurance Group An insurance company broadly integrates sustainability criteria into its investment processes. Information on the organisation Type of organisation
Insurance
Approximate asset allocation (as of 31.12.2016)
Asset allocation by asset class:
Assets under management (as of 31.12.2016)
Around CHF190 billion
Bonds and other fixed-income securities: 80% Equities: 6%
Real estate: 6%
Alternative investments: 2% Cash: 4%
Information on sustainable investment policy Who initiated the drafting of a sustainable investment policy?
What was the main motivation for this step?
What are the main components/content of the sustainable investment policy?
The initiative came from the Chief Investor Officer, who commissioned the development of a Responsible Investment strategy. This was submitted to the Executive Committee and the Board of Directors and approved in the spring of 2012. The primary motivation was financial: Systematically integrating sustainability into the investment processes can reduce risks and create new investment opportunities. At the same time, however, the aim is to actively contribute to a more sustainable economy in general and the financial industry in particular—in other words, to achieve a positive impact. It is also expected that a sustainable investment approach is welcomed as a positive step by employees and other stakeholders.
The sustainable investment strategy is based on the following three pillars: •
ESG integration
•
Cooperation with others on the continuous development of sustainability as a theme
•
Impact investing
ESG integration forms the core and covers both internally (1/3) and externally (2/3) managed funds. It is implemented for all asset classes apart from government bonds and hedge funds. For impact investments, the focus currently is on green bonds and private equity with impact. To promote sustainability in the financial services industry, Zurich Group is an active member of such organisations as PRI, Green Bond Principles, Cambridge University’s Investment Leaders Group, and the Global Impact Investing Network.
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