Pension Fund Swiss Re commits to further steps towards net-zero emissions

The Pension Fund Swiss Re commits to introducing new oil and gas guidelines and – as a new signatory to Climate Action 100+ and the Institutional Investors Group on Climate Change – supporting the transition to a net-zero emissions economy.

Since 2017, the Pension Fund Swiss Re has excluded from its investment universe any utilities that rely on thermal coal for 30% or more of their power generation mix and also any companies that derive 30% or more of their earnings from coal mining operations and/or 20% or more from oil sands business. In 2019, the Pension Fund added absolute thresholds, divesting from coal mining companies that produce 20 million tonnes or more of coal per year and from power utilities with more than 10 GW installed coal-fired capacity. Already, implementation of these guidelines has significantly reduced the carbon intensity of the Pension Fund’s bond portfolio and single investor fund ‒ global equities, while counteracting the risk of investments becoming "stranded assets. 1

In its effort to continuously reduce carbon intensity across its bond and equity portfolios, the Pension Fund Swiss Re is committed to introducing the revised oil and gas guidelines of the Swiss Re Group. As a result, the Pension Fund will divest from the top 5% of the world’s most carbon-intensive oil and gas producers with effect from July 2021, and from the top 10% with effect from July 2023.

In addition to implementing the new carbon reduction measures in its own investment portfolio, the Pension Fund Swiss Re has signed on to two investor-driven climate initiatives in November 2020. As a member of Climate Action 100+ and the Institutional Investors Group on Climate Change, the Pension Fund Swiss Re has joined other investors in supporting the transition to a net-zero emissions economy.

 

 The risk of investments in fossil fuels losing value when carbon pricing increases or when fossil fuel extraction is constrained as a result of regulation or social pressure