Carbon ambition

In 2022, Zurich introduced a carbon reduction ambition across relevant internally managed equity and credit portfolios. This Phase 1 ambition has been achieved, and Zurich has recently adopted a Phase 2 carbon reduction ambition.

Under this ambition, we expect to see the carbon intensity¹ of relevant equity and credit portfolios in our multi-asset funds decrease by 55% by 2029 compared to 2019 levels.

This goal will be pursued within the framework of Zurich’s existing top-down active investment process. To support this ambition, we will monitor the carbon intensity of our portfolios against a trend line and report to existing internal oversight groups and committees.

We anticipate that the actions of investee companies and stable to rising asset values will help support the reduction of carbon intensity across the relevant portfolios, rather than relying on significant changes to the assets within the portfolios. However, as investors, we actively contribute to achieving this ambition through active ownership, which includes proxy voting and engagement. These efforts are designed to influence and guide companies in reducing their own emissions.

By continuing to invest in companies that need to transition to lower carbon footprint business models, we can promote environmental characteristics and sustainability. We believe that this approach has a greater net impact than simply divesting from these companies. Nonetheless, the ambition is supported by our selective exclusion of thermal coal, oil sands, and oil shales-related assets above certain thresholds.