We measure our external asset managers on whether they integrate the following topics into the investment process when selecting equity investments:
On a regular basis, we review internal and external asset managers on their undertaken measures in the respective ESG disciplines. Depending on the result, we take targeted measures to implement our ESG integration standards.
The regular reports cover the topics of ESG integration and climate change:
How can asset managers have a positive impact on corporate decisions?
Our external asset managers seek target-oriented dialog with the management of companies in which they invest our customers' assets. In this way, they exert a positive influence on the management and business practices. We attach great importance to this approach, which is in line with the Code of Conduct of the Zurich Insurance Group and supports the actions that our company as a whole strives to take.
Note: The sub-funds to which the sustainable investment approach «Engagement» applies are not classified as sustainable.
Our three-tier engagement strategy is designed to ensure a focused dialogue with companies to raise awareness of ESG issues and to encourage steps towards improving their practices.
Since 2021, engagement activities in the regions of Switzerland, Europe, the USA, and Japan have remained generally stable, with only minor fluctuations in the number of companies in active dialogue.
The number of engagement activities in the area of emerging markets equities is significantly higher because the portfolio universe includes companies from countries with varying political, economic, and regulatory environments (e.g. China, Brazil, India, South Africa).
From the perspective of a long-term investor, it is important that companies take into account their impact on the environment and society in their strategy.
Examples include:
A climate change-focused engagement aims to ensure that companies with high CO2 emissions take action to reduce them in order to combat climate change.
Examples include:
The regional focus of engagement activities in the areas of environment (E), social (S) and good corporate governance (G) varies due to several factors. Cultural norms and values, legal and regulatory conditions, environmental issues and socio-economic conditions influence priorities in the respective ESG areas.
In addition, there are different stakeholder expectations and corporate strategies which can vary from region to region. Therefore, an adapted, region-specific approach to engagement activities is essential.
ESG stands for three sustainability-related areas in which companies have responsibilities:
Our participation in the ISS engagement pool will allow us to increase our environmental efforts. This is made possible by the larger jointly held portion of shares, which, together with other investors, allows us to exert greater influence.
| 2023 | 2024 | |
| Number of companies with an active engagement dialogue | 56 | 48 |
| Number of engagement activities with a focus on environmental issues | 50 | 44 |
| Number of engagement activities with a focus on climate | 9 | 11 |
| Number of engagement activities with a focus on corruption | 6 |
4 |
Engagement examples from our asset managers
An effective voting rights policy with systematic focus on ESG criteria effects changes at the corporate level and results in better investment decisions. It also promotes awareness of the relevance of sustainability.
Shareholder voting rights exist in Switzerland and abroad and are always exercised for the benefit of our customers. Within this process, the fund management of Zurich Invest Ltd exercises the shareholder rights and votes (on behalf of all investment groups with an underlying fund).
Note: The sub-funds to which the sustainable investment approach «Exercise of voting rights» applies are not classified as sustainable.
An effective voting rights policy with systematic focus on ESG criteria effects changes at corporate level and results in better investment decisions by the companies in which our customers' assets are invested.
The proportion of “no” votes against the proposals of the Board of Directors remained almost unchanged compared to the previous year. This indicates a stable shareholder structure, consistent content of proposals, and a steady perception of corporate governance. In addition, the voting guidelines of Zurich Invest Ltd remained unchanged, which also contributed to the continuity in voting behavior.
Zurich Invest Ltd mainly voted against the proposals of the Board of Directors of companies on the agenda items: election of the Board of Directors, remuneration, and climate change.
We vote against a proposal if it violates important national and international best practice codes for corporate governance.
Zurich Invest Ltd is currently developing its own ESG voting policy that has a specific focus on ESG agenda items.
We vote against a proposal if it violates important national and international best practice codes for corporate governance.
Zurich Invest Ltd is currently developing its own ESG voting policy that has a specific focus on ESG agenda items.
Joint progress in the form of networks, alliances and organizations pursues a common goal for the purpose of promoting the integration of ESG criteria in investment and business process in order to jointly build a better future.
Combating climate change is the focus of our strategy, which is why we expect our asset managers to be especially active in this area in order to effect joint progress.
Note: The sub-funds to which the sustainable investment approach «Joint progress» applies are not classified as sustainable.
The six principles of the UN Principles for Responsible Investment offer a range of possible actions for incorporating ESG considerations into investment practices:
Learn more (external link)
The Net Zero Asset Manager Initiative is an international group of asset managers committed to the goal of reducing greenhouse gas emissions to zero by 2050 or earlier in line with global efforts to limit global warming to 1.5 degrees Celsius and to support investments focused on zero emissions by 2050 or earlier.
Learn more (external link)
The Science Based Targets Initiative promotes ambitious climate protection measures in the private sector by enabling companies to set sound, science-based emissions reduction targets.
Learn more (external link)
The Climate Action 100+ Initiative is an investor-driven initiative to ensure that the world's largest greenhouse gas emitters take the necessary climate measures. Learn more (external link)
Over a period of at least two years, the Zurich Group has cooperated with companies directly, as well as through Climate Action 100+ and the Net Zero Asset Owner Alliance (NZAOA). It focuses on dialogue with carbon-intensive companies to set emissions targets. You can find the latest reports on the Zurich Group’s Climate Action Engagement in the Zurich Sustainability Report.
The recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) on climate-related financial information are widely applicable and can be adopted by companies in all industries and jurisdictions. They are designed to provide decision-useful, forward-looking information that can be incorporated into standard financial reports.
The recommendations are organized around four themes that represent core elements of how companies operate:
Learn more (external link)
| Equity Switzerland |
Performance | ASIP-ESG key figures |
| Equity US |
Performance | ASIP-ESG key figures |
| Equity Europe |
Performance | ASIP-ESG key figures |
| Equity Japan | Performance | ASIP-ESG key figures |
| Equity Emerging Markets | Performance | ASIP-ESG key figures |
