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.