Zurich recognised as insurance leader in Dow Jones Sustainability Index

Zurich has been participating in SAM’s Corporate Sustainability Assessment, now issued by S&P Global, since 2007 where companies are evaluated on economic, environmental, and social factors. The Dow Jones Sustainability Index is one of the most highly regarded measures of sustainability performance of industry, evaluating the sustainability of thousands of publicly traded companies. The fact that Zurich was ranked ahead of so many other financial institutions clearly shows that our efforts to be known as one of the most responsible and impactful businesses in the world are being recognised.

Responsible Investment and sustainability

At Zurich, there is only one way in which we manage our assets: as a responsible investor. Responsible Investment is part of our DNA and Responsible Investment practices are an integral part of the Group’s sustainability approach.

Zurich was an early signatory of the United Nations Principles for Responsible Investment (PRI) in 2012 and the Group has implemented its Responsible Investment framework over the last eight years. One of the key requirements of these principles is that the Group incorporates Environmental, Social and Governance factors (ESG) into its investment process.

Here in Ireland, the investment team at Zurich Life probe these factors when talking to companies and promote the principles where possible. As an owner and provider of capital to a company, we become important stakeholders and receive a voice – if not literally a seat – at the table. We strive to actively execute our voting rights – and this means to not just vote with management.

We also want to make sure that when we interact with the companies in which we invest (by talking to Investor Relation Officers or senior management; attending conferences and earnings calls) that they are, where appropriate, considering ESG factors in their decision making. Finally, maximising value does not stop once an investment decision is made – continued analysis and engagement is an integral part of our investment process.

As an active manager Zurich Life has always used a number of metrics to analyse the companies we invest in. ESG integration can be a valuable input into investment analysis and security selection.

Pat Cunningham, Responsible Investment Champion for Zurich Life in Ireland explains: “The integration of ESG factors into our investment process can help deliver additional insights which in turn can improve our assessment of investment risks and rewards. Our aim is to have both positive financial and non-financial benefits for all stakeholders by applying sound principles and integrating them in a practical way into our process.”

To embed Responsible Investment practices throughout the Zurich organisation and into our culture we take the following steps:

• Dedicated Responsible Investment objectives are formulated for all members of the Investment Management team and evaluated annually as part of Zurich Group’s performance management process.
• Responsible Investment ‘competencies’ have been defined and are used to describe required skills in job profiles used for recruiting and development purposes for all investment professionals.
• Mandatory Responsible Investment training is provided to all members of the Group’s Investment Management team. Additional advanced training is provided to portfolio managers and analysts within portfolio management teams.

Maintaining a leadership position

Zurich recognises there is more work to be done and believes that by putting environmental and social goals at the heart of our impact investment strategy we can create a more sustainable future for our customers and our stakeholders. Impact investing is only one element of Zurich’s responsible investment strategy. The insurer’s own assets of around USD 200 billion are covered by Zurich’s holistic responsible investment strategy, that applies the tools of environmental, social and governance (ESG) integration, active ownership, impact investing, selective exclusion screens and a net-zero by 2050 climate target.

Since 2019 we have removed companies whose primary activities involve either the extraction or use of thermal coal from our policyholder funds in Ireland. Zurich Insurance Group has also stopped insuring companies exposed to thermal coal, oil sands and oil shale that were unable or unwilling to adopt greener practices.

Zurich Life in Ireland is fully committed to the adoption and integration of these Responsible Investment principles into how we manage monies for our customers, and we maintain a key focus in this area. Representatives from Zurich Life sit on several strategy groups across the industry, including the Irish Association of Investment Managers.

As part of our sustainability efforts we are committed to broadening the base of people who understand what Responsible Investment is, its importance and what it can achieve. For more information visit: zurich.ie/responsibleinvestment.