ESG Letter (i.e. as part of the required documents): Our managers are asked to sign an ESG Letter outlining the ESG objectives and expectations which Swiss Re has.
The ESG information collected in the introductory exchanges with the potential new external managers, in the RFP answers and ultimately in the initial onsite due diligences are used to assess the ESG integration efforts of the respective external managers. The overall ESG assessment is sub-divided into four underlying dimensions, namely:
1) Governance and Policies (e.g. Responsible Investment Policy, ESG Voting Policy, ESG oversight, etc.)
2) Integration in Investment Process, Resources and Source of ESG Information (e.g. ESG knowhow, information on ESG factors used in investment process, ESG training, ESG data sources, etc.)
3) Engagement and Proxy Voting (e.g. engagement with investees, voting activities, etc.)
4) Reporting (e.g. report on ESG considerations, report on ESG integration efforts, etc.)
Each of the four above ESG assessment dimensions are evaluated against our expectations for the specific mandate. The overall ESG assessment is documented in the initial due diligence report. The due diligence report is then the basis for the manager appointment for any particular mandate.