Climate Change Data

Environmental Metrics

ESG Focus Areas

• Fair & inclusive workforce and workforce development
• Digitalization & innovation, and data privacy & security
• Climate change and natural disasters

Environmental Achievements

• 15-percent reduction in carbon emissions per employee and an 8-percent reduction in energy consumption per employee in 2017 (based on new targets compared to a 2015 baseline). 2018 data will be available in Q2 2019.
• Zurich has been carbon neutral since 2014 through continued work with Rimba Raya Biodiversity Reserve project in Indonesia.

Social Achievements

• Launched an innovative electric vehicle (EV) motor insurance product in Portugal.
• Implemented a new health and safety incident reporting system.
• 12 business units in 11 countries are EDGE certified with three certified at EDGE ‘Move’ level. These businesses represent over 52 percent of all Zurich employees.
• Launched the Inclusive Behaviours Pledge in the UK to create a more inclusive work environment.
• Established a first-of-its-kind U.S. apprenticeship program for the insurance industry.
• Tackle Your Feelings campaign in Ireland to destigmatize mental health issues.
• MindFIT program in Australia to destigmatize mental health issues in the community, using AFL as the vehicle.

Governance Achievements

• As of December 31, 2018, the proportion of women on the Board of Directors was 45 percent and 33 percent on the Group Executive Committee.
• Implemented a new sustainability risk framework to proactively and systematically identify and assess sustainability risk issues.
• Developed a thermal coal policy that stopped the provision of insurance, investment or risk management services for new thermal coal mines or for potential new clients that derive more than half their revenue from mining thermal coal, and also for utility companies that generate more than half of their energy from coal.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Skills gap in the workforce
• Risks associated with digital transformation
• Sustainability risks in underwriting (human rights, banned weapons, dam construction, oil and gas operations, mining operations)

Mitigation Strategies

• Developed a new sustainability risk framework.
• Implemented innovative apprenticeship programs.
• Established Zurich Insurance Mobile Solutions Ltd to address digital opportunities and risks.
• Developed a thermal coal policy.
• Proactively working with customers to identify, assess and mitigate environmental, social and governance risks.

Supply Chain Management

Responsible Procurement

• Incorporating environmental, social and governance criteria to assess goods and services.
• Including relevant sustainability clauses in contracts with suppliers.
• Driving spend through social enterprises.
• Launched Supplier Accreditation Scheme in the UK.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather, drought, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of sustainable products and services

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UNEP FI Principles for Sustainable Insurance (PSI), TCFD

Certifications: EDGE, LEED Platinum, DGNB Gold, BREEAM

Third-party Assurance: PricewaterhouseCoopers AG

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Electric vehicle insurance
• Renewable energy insurance
• Natural Hazard Radar

Awards & Recognition

• Bronze Class distinction in the 2018 Dow Jones Sustainability Indices (DJSI) Review
• Bloomberg Gender Equality Index
• Stonewall’s Global Equality Index

Environmental Metrics

ESG Focus Areas

• Climate change
• Confidence in a digital society
• Work sustainability

Environmental Achievements

• Reduced total emissions from office facilities and business travel by 31 percent relative to the 2015 base year, and by 7 percent compared with 2018. Emissions per full-time employee declined by 28 percent compared to the base year and by 10 percent compared to 2018. Energy consumption per full-time employee fell by 31 percent compared to the base year and 18 percent against 2018.
• Almost completely eliminated single-use plastics from operations.
• On track to meet target to reduce internal paper use by 80 percent compared to 2015.
• Industry leader in Dow Jones Sustainability Index 2020

Social Achievements

• Employees felt highly supported during COVID-19 crisis, reflected in the record eNPS score.
• Exceeded USD 5bn of impact investment portfolio. Now focusing on reaching our impact targets (5m tons of CO2 avoided and benefiting 5m people).
• Expanded Zurich Flood Resilience Alliance to provide direct support to an additional 200 communities, with the ambition of reaching four million people by 2024 overall.
• Increased talent mobility to fill vacant positions and address priority work.
• Zurich was rated No.1 for the insurance sector in the Dow Jones Sustainability Index (DJSI).

Governance Achievements

• Established Group-wide climate approach to align our business with a 1.5°C Future.
• Net zero-investment journey. Collaboration with the Science Based Target initiative and the UN-backed Net-Zero Asset Owner Initiative to operationalize our net-zero investment journey with the aim of setting first 2025 target in Q1 2021.
• Supporting vulnerable people. Z Zurich Foundation donated over CHF 14 million to charities supporting the vulnerable during the COVID-19 crisis.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations, employee wellbeing, and customer needs.
• Climate change risks and the need to adapt to a 1.5°C future.
• Cybersecurity risks in an increasingly digital world.
• Maintaining carbon neutrality while expanding operations.

Mitigation Strategies

• Implemented remote working protocols and provided support for employee wellbeing.
• Developed a Group-wide climate strategy ('Our 1.5˚C Future Plan') with science-based targets.
• Strengthened cybersecurity measures and offered cyber resilience services to customers.
• Continued to offset unavoidable emissions and invest in renewable energy sources.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with social enterprises
• Encouraging transparent environmental performance
• Ensuring minimum labor standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, floods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of climate-resilient products and services
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact, UNEP FI Principles for Sustainable Insurance

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers AG

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 11
• SDG 13

Zurich's initiatives contribute to these goals through its business activities, investments, and community programs.

Sustainable Products & Innovation

• Climate Change Resilience Services
• Parametric insurance for construction projects
• Electric vehicle insurance
• Renewable energy insurance
• Usage-based motor insurance

Awards & Recognition

• Industry leader in Dow Jones Sustainability Index 2020
• Gold Class distinction in DJSI
• A- Leadership Level CDP 2020 submission score
• 'Best Business Sustainability/Corporate Responsibility Campaign' at British Insurance Awards

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Replacing fluorescent lighting with LEDs in Argentina, Brazil, and Uruguay, resulting in energy savings.
• Achieved 75% reduction in printing and 80% reduction in paper consumption in Chile through digitization.
• Brazil offices are located in a LEED® Gold certified building.
• Implementation of a hybrid work model, reducing employee commutes.

Social Achievements

• Launched the "Skills for the Future" program, training 6,302 socially vulnerable young people.
• Invested USD 6,251,487 in community support.
• Achieved EDGE certification for the third time in Brazil and Mexico.
• 100% of employees trained on Code of Conduct, ethics, anti-bribery, and anti-money laundering.

Governance Achievements

• Incorporated sustainability criteria into the Global Procurement and Suppliers Management Policy.
• 21.94% of total investments are ESG-rated according to MSCI ESG Ratings.
• Annual Affidavit from Board of Directors to avoid conflicts of interest.
• Implemented risk management frameworks in each operating country.

Climate Goals & Targets

Environmental Challenges

• Complex economic outlook in Latin America due to inflationary pressures and exhausted fiscal capacity.
• Impact of COVID-19 pandemic on exchange rates and economic recovery.

Mitigation Strategies

• Agile adaptation to the changing market and digitalization.
• Development of a sustainability dashboard to monitor management and identify risks and opportunities.
• Implementation of hybrid work models and digitalization of processes to improve efficiency and reduce costs.

Supply Chain Management

Supplier Audits: [object Object]

Responsible Procurement

• Sustainability criteria incorporated into Global Procurement and Supplier Management Policy
• Due diligence control process for suppliers to verify risk related to corruption, bribery, and money laundering.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: EDGE

Sustainable Products & Innovation

• New Home Insurance with extended coverage and digital experience; Life and Multi-year Insurance supporting NGO Casa de la Amistad; Rent Guarantee Insurance supporting NGO Aldeas Infantiles; Payment Protection Insurance for green loans.

Awards & Recognition

• Great Place to Work Certification
• Valor Económico newspaper’s annual recognition for best companies for women

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities