EU Taxonomy Information for the Insurance Group
This section summarises key figures relating to investments according to Art. 8 of the EU Taxonomy Regulation.
In accordance with Article 8 of the EU Taxonomy Regulation, Swiss Life is for the first time publishing metrics on EU taxonomy eligible investments as at 31 December 2021 for the two environmental objectives climate protection and adaptation to climate change. The following EU taxonomy metrics apply equally to both environmental objectives. As the Swiss parent company of EU companies, Swiss Life voluntarily publishes the metrics on behalf of its EU subsidiaries.
The investments to be classified according to the EU Taxonomy Regulation comprise all on-balance sheet investments1 with the exception of government, central bank and supranational issued securities. These investments correspond to the total of the above pie charts for corporate bonds and equities.
Government, central bank and supranational issued securities account for around 18% of total investments. Derivatives account for around 1% of total investments. As at 31 December 2021, the classified investments in the corporate bond (24%) and equity (18%) asset classes total 42% of the investments to be classified. The eligibility of the other investments to be classified according to the EU Taxonomy Regulation, such as real estate, cannot be determined due to insufficient data.
1 Investments from unit-linked contracts are included in the analysis
Currently, 4% of the investments to be classified are eligible (of which corporate bonds: 2% and equities: 2%). 14% of the investments to be classified are not eligible (corporate bonds: 9% and equities: 5%). 24% of the classified investments are investments in companies that do not fall within the scope of the EU Non-Financial Reporting Directive (NFRD) (marked in the chart as non-NFRD; corporate bonds: 13% and equities: 11%). Overall, valuation on the basis of the fair value approach was used to determine the taxonomy-related metrics for investments. The allocation of securities (corporate bonds and equities) is based on the EU Taxonomy Compass (NACE1 code mapping). The sustainability strategy, product design processes and engagement with clients and counterparties are explained in the sections “Sustainability strategy,” “Sustainability as an Asset Owner and Manager” and “Sustainability in Insurance Business and Advice.” Aspects of climate protection and adaptation to climate change are highlighted in the TCFD Report.
In June 2020, the Taxonomy Regulation was published in the Official Journal of the EU. The regulation implements a classification system that can be used to define business activities, services or products as sustainable. According to the regulation, a business activity or product is sustainable if it contributes substantially to climate change mitigation and adaptation (two of the EU’s priority environmental targets) while not having a significantly negative impact on these two objectives or four other EU environmental targets (circular economy, water protection, waste prevention, biodiversity), complies with minimum social protection requirements and meets technical criteria.
1 Nomenclature statistique des activités économiques dans la Communauté européenne (economic classification system)