Swiss Re targets net-zero greenhouse gas emissions by 2050

Swiss Re has unveiled new measures to support the transition to a net-zero economy, encompassing both asset management and underwriting as well as its own operations.

As a founding member of the UN-convened Net-Zero Asset Owner Alliance, Swiss Re has committed to transition its investment portfolio to net-zero greenhouse gas emissions by 2050. Now, it has revealed concrete targets for how to achieve this.

These include a 2025 carbon intensity reduction target of 35 percent for corporate bond and listed equity portfolio; a long-term objective to exit coal-based assets for the portfolio by 2030; its systematic engagement with portfolio companies on developing climate strategies; target to increase investments in renewable and social infrastructure by $750 million; and ambitious targets to further decrease the carbon intensities in Swiss Re’s corporate bond and listed equity portfolio.

It noted that the new targets have been defined in accordance with science and the Net-Zero Asset Owner Alliance Target Setting Protocol, which Swiss Re played an instrumental role in developing, and which serves as a guide for the Alliance members.

To further increase transparency of its actions, Swiss Re has advanced its climate approach in Asset Management focusing on the following four steps to mitigate climate related risks, while supporting the net-zero transition of the economy:

Swiss Re’s Group CEO Christian Mumenthaler said: “Climate change remains the biggest challenge we face as a society. The stakes are high and require immediate attention. Signing up to net-zero emissions by 2050 and setting concrete climate targets are important first steps. What needs to follow now is action. We are moving ahead in all areas of our business to accelerate the transition towards net zero.”

Swiss Re’s Group Chief Investment Officer Guido Fürer said: “We believe that by engaging with the real economy and supporting the companies we invest in to develop a climate strategy and to manage related risks, we will improve our risk-adjusted returns, while also propelling the transition to a net-zero emissions economy.

“While we have already made considerable progress by substantially cutting CO2 emissions of our portfolio, today’s announcement is another important step in the race to net-zero. As asset owners we can play a meaningful role, and I’m pleased to see momentum building amongst the investor community.”

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