Swiss Re has announced new measures to support the transition to a net-zero economy.
The new targets have been defined in accordance with science and the ‘Net-Zero Asset Owner Alliance Target Setting Protocol’ – an initiative set up by the United Nations.
The company’s “concrete targets” to achieve this are as follows:
- 2025 carbon intensity reduction target of 35%1 for corporate bond and listed equity portfolio.
- 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 $750m (£540m) in addition, target to expand green, social and sustainability bond exposure to $4bn (£2bn) by the end of 2024.
The targets set out by the firm 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”.
Guido Fürer, group chief investment officer at Swiss Re, 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.“