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QBE Insurance Group Limited

PRI reporting framework 2018

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Establish ESG knowledge development and training for the Investment team

Progress achieved

Regular quarterly ESG knowledge development and training has been established with the Investment Team. In 2017, the first two of these were held, and supplement ongoing ESG awareness, and meetings on prospective investment opportunities with an ESG and impact investment lens, and industry initiatitives.

Key performance indicator

          Improve the accuracy and ratings of external ESG research providers with respect to QBE and by doing so, increase internal stakeholder awareness /value of ESG

Progress achieved

Building on 2016, engaged ESG research providers (DJSI / FTSE4Good, MSCI, Sustainalytics, etc) leading to improved inclusion in indices and improved ratings and accuracy of reports for QBE, including QBE's inclusion in FTSE4Good (Australia) and Bloomberg Gender Equality Index 2017/8.

Key performance indicator

          Broadly influence the adoption of ESG considerations across business, including in Sustainability and sustainable insurance initiatives

Progress achieved

Responsible Investments is represented in the QBE Group ESG Committee, an executive committee reporting to the Board Risk and Capital Committee (BRCC), responsible for the delivery of sustainability strategy, initiatives and reporting requirements.  It is made up of senior representatives from group departments involved in the day-to-day management of sustainability issues, including Risk, Finance, Investments, Investor Relations, People, Communications, Legal, Company Secretariat and Compliance.                          

QBE has increased engagement in ESG issues and continues to advance sustainability considerations across the business.   Responsible Investments considerations have been incorporated in a whole of business sustainability review; and in 2017, QBE issued a Green Bond, and a Gender Equality Bond (Social Bond).

Key performance indicator

          RI objectives: (I) RI strategy review; (ii) increase external ESG research inputs (iii) ESG integration in Fixed Income, (iv/v) continue prior year targets.

Progress achieved

RI objectives for the reporting year included (i) a review of the RI strategy (ii) increase external ESG research inputs to the investment processes of the global investment team (iii) extension of ESG integration in the Fixed Income process, and continue prior year targets:  (iv) continue to work across the business to develop a whole of exclusions approach and (v) continue to grow impact investments pool.

QBE has updated the RI strategy, and commenced implementation of the strategy. QBE has added to the suite of ESG research and data which informs ESG considerations within the Investment Team, including the ESG rating and monitoring of the Fixed Income Portfolio. In 2017, QBE enhanced ESG consideration and process in the Fixed Income portfolio, covering the majority of AUM.

The whole of business exclusions policy is complex for a global corporate and is an ongoing piece of work that has board support. This continues to progress.

QBE increased the pool of impact investments from 11 to 26 securities and to USD455m.

          External Manager Review

Key performance indicator

          Review of external managers with ESG considerations

Progress achieved

In 2017, we conducted a review of external managers including raising ESG related considerations. This forms a baseline for enhancement in 2018.

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          ESG integration in Fixed Income portfolio

Progress achieved

QBE has enhanced ESG integration in the Investment Credit Selection and Monitoring process. Corporate entities under consideration are subject to an ESG Assessment, including independent external ESG ratings, and Portfolio Manager assessment.  Monitoring and watch list practices incorporate ESG data and externally sourced controversies research. ESG considerations complement these practices, including issuers where there is increased potential for risk.

Other activities

Key performance indicator

          Join RI industry networks and other information sharing initiatives

Progress achieved

In 2017 QBE joined the Responsible Investment Industry Australasia (RIAA), hosted a panel for the Impact Investment Forum, and participated in the RIAA Conference (Australia), along with a number of other responsible investment industry forums and information sharing platforms.                            These include climate bonds, sustainable finance and the Sustainable Development Goals; and TCFD climate disclosure discussions.

In impact investing, QBE is an anchor partner of Impact Investing Australia. QBE representatives participated in the Global Social Impact Investment Steering Group (Chicago), Asia-Pacific Impact Investment Summit (Australia); SOCAP Good Capital launch (US) and the Sorenson Impact Center Winter Innovation Summit (US).

06.2. Additional information.