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Swiss Re Ltd

PRI reporting framework 2020

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Pre-investment (selection)

PE 05. Incorporating ESG issues when selecting investments

05.1. During due-diligence indicate if your organisation typically incorporates ESG issues when selecting private equity investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in private equity investment selection.

RI/ESG considerations are embedded in Swiss Re's entire investment process including pre-investment due diligence.

Private equity investment professionals consider ESG issues when reviewing new private equity and principal investment opportunities and are responsible to closely monitor the portfolio of direct private equity and principal investments with respect to ESG issues. In addition, ESG considerations are systematically included in the Investment Memorandum.

Social and governance issues are most common given the nature of our private equity investments. The relative weight of different issues varies across business types, geographies, and the level of development of the market. However, there are some common themes including relationships with regulators, treatment of policyholders, selling practices, alignment of management interests with shareholders, and minority shareholder rights.

05.3. Additional information. [Optional]


PE 06. Types of ESG information considered in investment selection

06.1. Indicate what type of ESG information your organisation typically considers during your private equity investment selection process.

          Regulatory bodies
        

06.2. Describe how this information is reported to, considered and documented by the Investment Committee or similar.

Since ESG considerations are embedded in our investment process, the first step is to gather information on the target company, its operations, and the market. This information comes from a variety of sources including the target itself, external financial and legal advisors, and resources within the firm based on our own business experience in that market and with that target.

As potential ESG issues are identified, they are raised with risk management and additional information is gathered for diligence. That can include discussions with legal counsel, financial advisors (including accountants) and/ or regulatory authorities, referral to our Sustainability Risk Management team under the Sustainable Business Risk assessment process, and further investigation by hiring specialist firms with knowledge of the specific issue and market under scrutiny.

The relevant Investment Committee memorandum contains an ESG risk assessment which summarises the key ESG risks and provides the Investment Committee with the necessary information to evaluate and consider the ESG aspects for each proposed new investment.


PE 07. Encouraging improvements in investees (Private)


PE 08. ESG issues impact in selection process (Private)


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