Identification, assessment and management of sustainability aspects
As part of its Group-wide sustainability strategy, Swiss Life is also integrating sustainability and climate-related aspects into its existing risk management standards for the management of the business. The identification, assessment and adequate management of climate-related risks are embedded in both the qualitative and quantitative elements of Swiss Life’s risk management.
On the qualitative side, the identification of climate-related risks is included in the emerging risk process. In addition, the structured processes for determining the comprehensive risk profile include climate-related aspects. Swiss Life assesses physical and transition risks as strategic risks for the business model. Consequently, relevant climate-related aspects are taken into account in business management. In addition, as part of the ORSA, Swiss Life examines scenarios related to climate change, both at Group level and at the level of various divisions.
On the quantitative side, for the identification, assessment and adequate management of climate-related risks and other sustainability aspects of investments, Swiss Life systematically integrates sustainability metrics, such as greenhouse gas emissions and ESG ratings from external data providers. An expansion of the quantitative risk management standards for the systematic identification, assessment and adequate management of climate-related risks on both the asset and liability sides of Swiss Life’s balance sheet is currently in development.