As an asset owner and manager

As an asset owner and manager, sustainability considerations in general and climate change considerations in particular are an integral part of Swiss Life’s investment strategy, investment processes and investment product development. Swiss Life strives to manage the assets entrusted to it in a manner that takes into account physical and transition risks and seizes opportunities arising from the transition to a low-carbon and climate-resilient economy.

Furthermore, Swiss Life offers its clients investment products and services based on sustainability aspects, such as energy efficiency and environmental protection, which take into account the clients’ individual needs and preferences. These investment products comprise equities and bonds plus real estate and infrastructure investments. In addition, third-party clients are advised on climate-related risks and opportunities with due consideration of local regulatory requirements.

Both the Swiss Life Group and the Swiss Life Asset Managers division are signatories to the Principles for Responsible Investment (PRI). Around 90% of the total assets managed by Swiss Life Asset Managers follow at least one responsible investment approach as per the current definition of PRI. The remaining assets under management are investment products such as mortgages and money market instruments. Due to the product structure and lack of data, it is not yet possible to take ESG criteria into account. The Swiss Life Asset Managers Responsible Investment Policy can be viewed at www.swisslife-am.com/ri-policy.

The PRI definition includes “Screening”, “ESG Integration”, “Thematic Investing”, “Stewardship” and “Impact Investing”. The measures entailed by the responsible investment approach of Swiss Life Asset Managers, which can be categorised as “Screening”, “ESG Integration” and “Thematic Investing,” are applied in different ways to the PAM portfolio and to third-party business.

As an asset owner and manager, Swiss Life has various ways of exerting influence with varying degrees of impact on the investments made by it or on its behalf. The insurance divisions delegate a portion of their investment activities to Swiss Life Asset Managers.

In the context of its PAM portfolio – securities, real estate and infrastructure – Swiss Life’s ambition is to make financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development and thus contribute to a central goal of the Paris Agreement. Swiss Life is already well positioned today in terms of the weighted average carbon intensity of the PAM securities portfolio. Swiss Life wishes to maintain this position as part of the ongoing strategic programme. In its direct sphere of influence, Swiss Life aims to reduce the carbon intensity of its directly held PAM real estate portfolio.

Climate-related measures in Swiss Life Asset Managers’ responsible investment approach as applied to Swiss Life Group’s PAM portfolio, based on the relevant categories as defined by PRI

Swiss Life Asset Managers is a member of the Net Zero Asset Managers initiative (NZAMi) and includes the carbon intensity target of the directly held PAM real estate portfolio in its reporting in the context of this membership. In addition, Swiss Life Asset Managers conducts a climate-related dialogue with selected companies in which investments have been made as part of its total assets under management. This can be assigned to the PRI category “Stewardship” and is also included in the reporting as part of Swiss Life Asset Managers’ NZAMi membership. With regard to the PRI category “Impact Investing”, Swiss Life is currently examining possible courses of action.

For the prevention of “greenwashing”, Swiss Life emphasises clear and transparent communication with its stakeholders in which sustainability aspects, including climate-related aspects are addressed. In the case of investment products in particular, it ensures that adequate control mechanisms exist and that definitions are based, where appropriate, on established industry standards. These control mechanisms include, for example, monthly reports depicting the key sustainability aspects of a portfolio and serving as a basis for discussion in certain bodies (e.g. the Risk Committee). The reports and publications of the EU-domiciled ESG and Sustainable Impact funds all comply with the SFDR transparency requirements. Swiss Life also meets the current regulatory and supervisory requirements of the respective jurisdictions in the European Union as well as those of FINMA.

Further information can be found in the “Metrics and Targets” section, in the Sustainability Report, available at www.swisslife.com/sustainabilityreport (“Sustainability as an Asset Owner and Manager” section) and the Responsible Investment Report, available at www.swisslife-am.com/rireport.