Commerzbank Sustainability C onference - Swiss Re3b2eb36b-fa6b-4338-9213-38954e… · Commerzbank...

CommerzbankSustainability CDr. David N. Bresch, HeaRisk

Frankfurt, 30 May 2012

a

k Conferencead Sustainability & Political

Swiss Re

Swiss Re is a leading and hire/insurance company

We deliver both traditional and innovand Life & Health that meet our clien

A pioneer in insurance-based capitalstrength and unparalleled expertise f

148 years of experience in providingmanagement solutions.

Commerzbank Sustainability Conference | Frankfurt, 30 May 2012

Our financial strength is currently ratStandard & Poor’s: AA-/stable; Mood

Agenda

Our approach to corporate respo

E t di i k i t lli


Extending our risk intelligence

Creating sustainable solutions

Reducing our environmental foo

Exploring and shaping the risk l

a

ghly diversified global

vative offerings in Property & Casualty nts’ needs.

l market solutions, we combine financial for the benefit of our clients.

g wholesale re/insurance and risk

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ted:dy’s A1/positive; A.M. Best: A+/stable

2

a

onsibility

2 3

otprint

andscape

Our approach to corpresponsibility

Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012

Recognised sector lea


Swiss Re retained its position as insurJones Sustainability Index for the four

Swiss Re is also recognised as one of Companies by Ethisphere, a leading in


a

We are committed to being a responsible

porate a

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being a responsible company. Contributing to sustainable, long-term value creation serves as a guiding principle for our practical actions.

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a

ader

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rance sector leader in the Dow rth consecutive year.

the World’s Most Ethical nternational think thank.

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Swiss Re Group code of conduc

“Swiss Re takes pride in being aresponsible organisation that deits stakeholders - our employeesgovernment regulators and the g

Our values mean doing business

Our approach to corporate re


[…] Taking the long-term view, asustainable progress – for stake

Sustainability as a guiding principle

Our approach to corporate re


Sustainability can be described as the prpresent without compromising the abilityneeds. To be sustainable, development mprotect and restore ecological systems, a

In all our main activities aimed at implemsustainability principle is a key criterion:

Business solutions Risk intelligence Risk dialogue

a

ct:

a law-abiding, ethical and socially eals fairly and professionally with s, shareholders, customers, general public.”

s the Swiss Re way

esponsibility

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and playing our part in enablingeholders and society in general.

aesponsibility

2

rogress that meets the needs of the y of future generations to meet their

must improve economic efficiency, and enhance social well-being.

menting corporate responsibility, the

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Our footprint Corporate citizenship Our employees

Climate changeOn a global scale, climate change is the humanity. Swiss Re was one of the first oimpact almost twenty years ago. It has sleader on the topic and has developed sethem the Greenhouse Neutral ProgrammProgramme and – in partnership with othClimate Adaptation (ECA) methodology.

The Group’s strategy to tackle climate ch

Our climate change strategy


Assess and manage risk

Seize business opportunities

Extending our risk int


a

biggest environmental challenge facing organisations to realise its potential ince become an acknowledged thought everal path-breaking initiatives, among

me, the COYou2 Reduce and Gain her organisations – the Economics of

hange rests on four pillars:

y

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Lead by example

Influence the businessenvironment

atelligence

2

We apply tailor-made tools to extend the scope of our risk management. This helps us identify and appropriately address ethical, sustainability-related and emerging risks.

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Nat Cat losses on the riseMassive gap between economic aNatural catastrophe losses 1980-2011, in USD billio


Note: Loss amounts indexed to 2010Source: Swiss Re sigma catastrophe database

Key drivers so far


Ocean Drive, FL, 1926

aand insured losseson

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a

2

Ocean Drive, FL, 2000

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Mitigation is aligning with the broader development agenda as people accept that high-carbon growth

“Business as usual” high-carbon growth is no longer an option

Develop

climcomp

develo

The need for climate-resiliendevelopment


high carbon growth is unsustainable Mitigation

Climateabate

Objectives:

Provide decision makers with the facts and ma climate adaptation strategy

Climate-resilient developmeassess and address total clim


a climate adaptation strategy Supply insurers, financial institutions, and po

unlock risk prevention funding and deepen gl

We developed and tested a methodology to: Follow a rigorous risk management approach

today’s climate risk, the economic development paths that migh the additional risks presented by climate ch

Propose and prioritize a basket of adaptation economic basis

The team: Economics of Climate Adaptation (eca) Worki

Environment Facility, McKinsey & Company, SClimateWorks Foundation, the European Com

a

Adaptation will require incremental funds beyond business as usual; adaptation and

Climate-resilientdevelopment

pment

mate patibleopment

nt

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development are often indiscernible

Adaptation-proofed

ement

a

methods necessary to design and execute

ent needs to mate risk

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tential funders with the information required to obal risk transfer markets

h to assess local total climate risk, the sum of

ht put greater population and value at riskhangemeasures to address total climate risk on an

ing Group, a partnership between the Global Swiss Re, the Rockefeller Foundation, mmission, and Standard Chartered Bank.

Economics of Climate AdaptEconomic growth remains the moregarding the loss in 2030

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5623

Potential impact from economic growth

Potential imfrom changeclimate

Expected loss from exposure to climateExtreme climate scenario, USD millions

Example city of Hull, UK: The expected loss i


Incrementaincrease froextreme climchange sce

Incremental increase from economic growth; no climate change

2008, today’s expected loss

The working group studied 1with diverse climate hazards

MaliMali

U.K. / Hull


Samoa

Florida

Samoa

GuyanaGuyana

US Gulf coast

atation (ECA)st important factor

96

+71%

mpact e in

n USD millions

2

2030, total expected loss

al om mate

enario

14

14

a17 regions s

China North, Northeast

2

India Maharashtra

TanzaniaTanzania Anguilla, Bermuda, Barbados , Jamaica, Antigua and Barbuda, St. Lucia, Dominica

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Sustainability risk - ReputatiHeadlines risk: examples


Hu

Profundo 2008

Sustainability Risk Framewo

Oil & Gas

Policies


Defense industry

Mining industry

Dams

Forestry & logging

Animal testing

Nuclear proliferation

Human rights & environmental protection

Introduced in November 2009, 2011: 158 r Aligned with IFC Performance Standards, in

standards (e.g. Cyanide code in gold mining Applied to insurance business and investme

application depends on the possible influen

aonal risk

2 16uffington Post, 2010

aork

Exclude companies

Mechanisms

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p exclusion list

Exclude countries exclusion list (Burma, Iran, North Korea, Somalia, Sudan)

Exclude activities

Due diligence: Sensitive Business Risks referral tool

eferralsternational agreements (e.g. NPT), best-practice

g)ents (liabilities and assets); in practice degree of ce

Sensitive Business Risk refeOverview


"Recommendations for manenvironmental, social and etchallenges in business trans

Becoming accouactivities.


Awareness

Identificationissues

Definition of

Guidance an

Governance

Coherence a

Swiss Re has implemented most of the

Sustainability Working Group:

arrals (SBR)

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aaging thical sactions"

untable as an enabler of projects and

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n and assessment of sustainability

f tolerance level

nd empowerment of employees

processes

across group activities and regions

e "Recommendations"

Creating sustainable


Example micro-scale The R4 Rural Resilience Initiative


R4:

a

We develop innovative solutions that help tackle

solutions

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solutions that help tacklesustainability challenges. Focus areas are naturalcatastrophes, climate change and insurance coverin emerging countries.

220

a

1.3 billion people living on less than a dollar per day

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Climate-related shocks pose a constant threat to food security and well-being

R4 Rural Resilience Initiative by Oxfam, World Food Programme with the support of Swiss Re

Insurance promotes risk-taking essential to economic growth and development

Insurance paid for by contributing time and labourto local climate adaptation measures, such as crop irrigation and forestry projects

Building on the success of the Horn of Africa Risk Transfer for Adaptation (HARITA) project in Ethiopia

Risk Reduction, Risk Taking, Risk Reserve and Risk Transfer

Example micro-scale The R4 Rural Resilience Initiative


Example micro-scale The R4 Rural Resilience Initiative Success to date


a

2 222

a

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Example macro-scale Caribbean Cat Risk Insurance Fac

Theeargovliqugovup

Thethefac(US

D

T


H

SwplaWo

Reducing our environfootprint


aility

e CCRIF offers parametric hurricane and rthquake insurance policies to 16 CARICOM vernments. The policies provide immediate uidity to participating governments. Member vernments choose how much coverage they need to an aggregate limit of USD 100 million

e mechanism will be triggered by the intensity of e event (e.g. winds exceeding a certain speed). The ility responded to events and made payments

SD 33 million to date):

Dominica & St. Lucia after earthquake (2007)

Turks & Caicos after Hurricane Ike (2008)

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Haiti (2010)

wiss Re and other overseas reinsurers, programmeced by Aon Benfield Ltd., derivative placed by

orld Bank Treasury

anmental

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We strive to minimise the environmental impact ofour operations and procurement activities. Cutting CO2 emissions and reducing energy intensity are key targets across the Group.

Greenhouse Neutral ProgramWe are greenhouse neutral since


Greenhouse Neutral Program

Our goal is to use 100% of renewable powlocations where this is technically feasible


amme2003

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amme

wer at all e by 2013

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Geothermal energy in MuSince 2010 our location biggest worldwide) uses

River hydropower in SichSome of the voluntary emproject of 3 river hydropo

l i i i d f b

Greenhouse Neutral ProgramProject examples


electricity gained from bu

PwC is responsible for the inconsolidated CO2 emissions

We select goods and services

Group purchasing guidelinesminimum standardsWe have guidelines for goods and service


Suppliers

which offer best value for money meet high quality standards which have a low environmental impact which observe social standards in their

We give preference to suppliers that havcertified environmental management sy

Comply with international social standa we prohibit the use of subcontracto we prohibit any use of underage or

a

unichin Munich (with 600 employees one of the exclusively geothermal energy.

huan (China)missions reduction certificates came from a ower stations in China substituting

i f il f l

mme

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urning fossil fuels.

ndependent assurance report on our s

as and

s we need for our operations

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supply chain

ve an environmental policy or aystemrds e.g. ors without our permissionr forced labor

COYou2 - Reduce and Gain Pr

The programme is designed to enhance ouemployees’ awareness on climate changeSwiss Re’s climate change commitment m

The programme aims at encouraging staffglobally to make their own personal investCO2-reducing measures. Swiss Re suppormaximum of 50% of any investment (up toCHF 5000 or an equivalent amount adjustlocal cost of living)

A total of 3'953 payouts made from JanuDecember 2011. Most popular investmentfor public transportation household applia


for public transportation, household appliahybrid vehicles

Following a third-party evaluation carried the COYou2 Programme is being continued December 31, 2013 at which point it will bevaluated

Exploring and shapinlandscape


aogramme

Other4% Alternative

ur and to make

more tangible

f members tments in ts a o max. ted to the

ary 2007 to ts: subsidies ances and

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Payouts by type Payouts by region

Heating24%

Publictransport32% Electricity

23%

individualtransport17%

Europe57%

Asia14%

Americas29%

ances and

out in 2010, until be re-

ag the risk

2

We regularly engage in dialogue with our stakeholders to advance our understanding of the changing risk landscape and to promote effective responses to key risks.

231

Implementation and commurisk research


http://media.swissre.com/documents/pub_climate_ad

Swiss Re ReSource


An urban watershed management projRe's 2012 International ReSource AwaManagement

A project in Kibera, the largest slum in2012. The project focuses on water maelements on sanitation, environmentalmanagement into an innovative partici

www.resourceaward.org


anication of

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daption_en.pdf, http://www.swissre.com/publications

a

e Award

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ject in Nairobi, Kenya wins Swiss ard for Sustainable Watershed

Nairobi, wins the ReSource Award anagement by building educational stewardship and watershed patory design process.

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Swiss Re is currently rated as the most sustainable company in the insurance sector, positioning itself ahead of 114 sector competitors1

– Held top spot for fourth year in a row

Rating factors go beyond "green"

– Corporate governance, employee development, diversity, etc.

– "Classic" factors like CO2 emissions d i

SustainabilityAn additional reason to invest in S


and resource consumption

Swiss Re with above-market share institutional investors who rate themselves as socially responsible

1 Based on SAM survey, conducted by the publisher of the Dow Jones

Thank you

a

w

Swiss Re

2

of

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Sustainability Index (DJSI)

aa

Investor Relations contacts

Hotline E-mail+41 43 285 4444 Investor Relations

Corporate calendar

09 August 2012 Second Quarter 2012 10 September 2012 Investors and Media m08 November 2012 Third Quarter 2012 res21 February 2013 Annual Results

Corporate calendar & contac


+41 43 285 4444 Investor_Relations

Eric Schuh Ross Walker+41 43 285 4708 +41 43 285 2243

Simone Lieberherr Simone Fessler +41 43 285 4190 +41 43 285 7299

Legal notice

©2012 Swiss Re. All rights reserved. Ymodifications or derivatives of this pre

th bli ith t th


or other public purposes without the p

Although all the information used wasdoes not accept any responsibility forthe details given. All liability for the acfor any damage resulting from the usepresentation is expressly excluded. Unor its Group companies be liable for arelating to this presentation.

a

@swissre com

results Conference call meeting Monte Carlosults Conference call

Zurich

cts

2

@swissre.com

Chris Menth +41 43 285 3878

36

a

You are not permitted to create any esentation or to use it for commercial

i itt i i f S i R

2

prior written permission of Swiss Re.

s taken from reliable sources, Swiss Re the accuracy or comprehensiveness of ccuracy and completeness thereof or e of the information contained in this nder no circumstances shall Swiss Re ny financial and/or consequential loss

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