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Swiss Re Ltd

PRI reporting framework 2020

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You are in Indirect – Manager Selection, Appointment and Monitoring » Appointment

Appointment

SAM 04. Appointment processes (listed equity/fixed income)

04.1. Indicate if in the majority of cases and where the structure of the product allows, your organisation does any of the following as part of the manager appointment and/or commitment process

04.2. Provide an example per asset class of your benchmarks, objectives, incentives/controls and reporting requirements that would typically be included in your managers’ appointment.

Asset class

Benchmark

          Various MSCI ESG Leaders Indices
        

ESG Objectives

          Outlined in the ESG Letter and in the investment mandate documents
        
          Restricted issuer list and rating based exclusions
        
          The integration of ESG is outlined in the investment mandate document
        
          Discuss major engagements in quarterly calls and/or on-site meetings
        
          Swiss Re voting framework (i.e. target voting 100 % of votable shares)
        
          ESG letter with continuous improvement target
        

Incentives and controls

Reporting requirements

Benchmark

          Various
        

ESG Objectives

          Outlined in the ESG Letter and in the investment mandate documents
        
          Restricted issuer list
        
          As no ESG benchmarks are used, a minimum ESG rating threshold defines the investment universe. Please refer to SAM 04.4 for additional information
        

Incentives and controls

Reporting requirements

Benchmark

          When no ESG benchmarks are available (which holds true only for a small portion of the benchmarks), fixed income benchmarks with additional ESG criteria are used
        
          Various Bloomberg Barclays MSCI Corporate Sustainability Indices (BB and better)
        

ESG Objectives

          Outlined in the ESG Letter and in the investment mandate documents
        
          Restricted issuer list
        
          Performance measured against ESG benchmarks, which are also used to define the investment universe. If, however, there are no ESG benchmarks available, a minimum ESG rating threshold defines the possible investment universe. Please refer to SAM 04.4 for additional information
        

Incentives and controls

Reporting requirements

Benchmark

          When no ESG benchmarks are available (which holds true only for a small portion of the benchmarks), fixed income benchmarks with additional ESG criteria are used
        
          Various Bloomberg Barclays MSCI Corporate Sustainability Indices (BB and better)
        

ESG Objectives

          Outlined in the ESG Letter and in the investment mandate documents
        
          Restricted issuer list
        
          Performance measured against ESG benchmarks, which are also used to define the investment universe. If, however, there are no ESG benchmarks available, a minimum ESG rating threshold defines the possible investment universe. Please refer to SAM 04.4 for additional information
        

Incentives and controls

Reporting requirements

Benchmark

          Various
        

ESG Objectives

          Outlined in the ESG Letter and in the investment mandate documents
        
          Restricted issuer list
        
          Performance measured against ESG benchmarks, which are also used to define the investment universe. If, however, there are no ESG benchmarks available, the manager is requested to select investments, all else equal, that have better ESG ratings
        

Incentives and controls

Reporting requirements

Benchmark

          Private Equity industry return
        

ESG Objectives

          Side letters with Private Equity GPs include country and company exclusion lists, with the latter based on industry sector and specific exclusions as per the latest applicable requirements of Swiss Re Asset Management and/or the Group. In cases where a Private Equity GP is not prepared to accept the necessary investment restrictions in the side letter, other appropriate mitigation measures are being put in place (e.g., Swiss Re to be excused from a specific restricted investment, or flexibility to divest LP stake).
        
          Outlined in the ESG Letter and/or other relevant legal documents
        

Incentives and controls

Reporting requirements

Benchmark

          Leading property indices for each invested country
        

ESG Objectives

          BREEAM, NABERS and LEED certifications, GreenPrint tracking, Energy Star, GRESB submission and tracking
        

Incentives and controls

Reporting requirements

04.3. Indicate which of these actions your organisation might take if any of the requirements are not met

04.4. Provide additional information relevant to your organisation`s appointment processes of external managers. [OPTIONAL]

          As part of the contractual framework for the manager appointment, Swiss Re highlights its commitment to responsible investment and the manager responsibility to take ESG considerations into account in the investment process, as well as to report on progress. The execution of the Swiss Re ESG Letter is a requirement as part of the overall appointment process. Additionally, we have defined investment guidelines also integrating exclusion lists such as based on the Swiss Re Sustainable Business Risk Framework and on ESG and reputational risk concerns, that the managers are bound to integrate.  

In 2017, we switched to benchmarks composed of higher ESG-rated companies for our actively managed listed equity and corporate bond portfolios. Active portfolio managers are given some additional but limited investment flexibility based on their own ESG assessment. Since 2018, we additionally apply ESG rating based limitations to the lowest rated companies in the active equity mandates.
For buy-and-hold portfolios, minimum ESG rating thresholds define the eligible investment universe.
        

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