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Climate-related portfolio ambitions of the Swiss Life Group

Thermal coal phase-out strategy

Swiss Life has adopted a thermal coal phase-out strategy for its proprietary bond portfolio by refraining from new investments in companies that derive more than 10% of revenues from mining, extracting and selling thermal coal to external parties. Swiss Life has set a coal threshold for its infrastructure investments: Swiss Life refrains from investing in companies or projects with a coal valuation contribution exceeding 10%, meaning the present value of cash flows generated from extracting, selling, handling coal or generating electricity and heat from coal must be below 10% of the company’s or project’s valuation.

A thermal coal phase-out strategy for the proprietary corporate bond portfolio has been formalised, in order to contribute to the transition towards a more sustainable and low-carbon economy as well as to avoid the risk of stranded assets. Throughout the past year, Swiss Life’s exposure to companies that derive 10% or more of their revenues from thermal coal, either from mining or selling it to external parties, was reduced to 0%. In equities, Swiss Life screens its index universe for the same thermal coal criteria. Since Swiss Life follows a passive investment approach on the equity side, which provides less flexibility to exclude certain companies, some exceptions are required.

Further information can be found in the Responsible Investment Report at www.swisslife-am.com/rireport (section “ESG in Proprietary Insurance Asset Management”).