CommerzbankSustainability CDr. David N. Bresch, HeaRisk
Frankfurt, 30 May 2012
a
k Conferencead Sustainability & Political
Swiss Re
Swiss Re is a leading and hire/insurance company
We deliver both traditional and innovand Life & Health that meet our clien
A pioneer in insurance-based capitalstrength and unparalleled expertise f
148 years of experience in providingmanagement solutions.
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Our financial strength is currently ratStandard & Poor’s: AA-/stable; Mood
Agenda
Our approach to corporate respo
E t di i k i t lli
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Extending our risk intelligence
Creating sustainable solutions
Reducing our environmental foo
Exploring and shaping the risk l
a
ghly diversified global
vative offerings in Property & Casualty nts’ needs.
l market solutions, we combine financial for the benefit of our clients.
g wholesale re/insurance and risk
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ted:dy’s A1/positive; A.M. Best: A+/stable
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a
onsibility
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otprint
andscape
Our approach to corpresponsibility
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Recognised sector lea
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Swiss Re retained its position as insurJones Sustainability Index for the four
Swiss Re is also recognised as one of Companies by Ethisphere, a leading in
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
a
We are committed to being a responsible
porate a
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being a responsible company. Contributing to sustainable, long-term value creation serves as a guiding principle for our practical actions.
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a
ader
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rance sector leader in the Dow rth consecutive year.
the World’s Most Ethical nternational think thank.
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Swiss Re Group code of conduc
“Swiss Re takes pride in being aresponsible organisation that deits stakeholders - our employeesgovernment regulators and the g
Our values mean doing business
Our approach to corporate re
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
[…] Taking the long-term view, asustainable progress – for stake
Sustainability as a guiding principle
Our approach to corporate re
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Sustainability can be described as the prpresent without compromising the abilityneeds. To be sustainable, development mprotect and restore ecological systems, a
In all our main activities aimed at implemsustainability principle is a key criterion:
Business solutions Risk intelligence Risk dialogue
a
ct:
a law-abiding, ethical and socially eals fairly and professionally with s, shareholders, customers, general public.”
s the Swiss Re way
esponsibility
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and playing our part in enablingeholders and society in general.
aesponsibility
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rogress that meets the needs of the y of future generations to meet their
must improve economic efficiency, and enhance social well-being.
menting corporate responsibility, the
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Our footprint Corporate citizenship Our employees
Climate changeOn a global scale, climate change is the humanity. Swiss Re was one of the first oimpact almost twenty years ago. It has sleader on the topic and has developed sethem the Greenhouse Neutral ProgrammProgramme and – in partnership with othClimate Adaptation (ECA) methodology.
The Group’s strategy to tackle climate ch
Our climate change strategy
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Assess and manage risk
Seize business opportunities
Extending our risk int
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
a
biggest environmental challenge facing organisations to realise its potential ince become an acknowledged thought everal path-breaking initiatives, among
me, the COYou2 Reduce and Gain her organisations – the Economics of
hange rests on four pillars:
y
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Lead by example
Influence the businessenvironment
atelligence
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We apply tailor-made tools to extend the scope of our risk management. This helps us identify and appropriately address ethical, sustainability-related and emerging risks.
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Nat Cat losses on the riseMassive gap between economic aNatural catastrophe losses 1980-2011, in USD billio
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Note: Loss amounts indexed to 2010Source: Swiss Re sigma catastrophe database
Key drivers so far
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Ocean Drive, FL, 1926
aand insured losseson
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a
2
Ocean Drive, FL, 2000
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Mitigation is aligning with the broader development agenda as people accept that high-carbon growth
“Business as usual” high-carbon growth is no longer an option
Develop
climcomp
develo
The need for climate-resiliendevelopment
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
high carbon growth is unsustainable Mitigation
Climateabate
Objectives:
Provide decision makers with the facts and ma climate adaptation strategy
Climate-resilient developmeassess and address total clim
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
a climate adaptation strategy Supply insurers, financial institutions, and po
unlock risk prevention funding and deepen gl
We developed and tested a methodology to: Follow a rigorous risk management approach
today’s climate risk, the economic development paths that migh the additional risks presented by climate ch
Propose and prioritize a basket of adaptation economic basis
The team: Economics of Climate Adaptation (eca) Worki
Environment Facility, McKinsey & Company, SClimateWorks Foundation, the European Com
a
Adaptation will require incremental funds beyond business as usual; adaptation and
Climate-resilientdevelopment
pment
mate patibleopment
nt
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development are often indiscernible
Adaptation-proofed
ement
a
methods necessary to design and execute
ent needs to mate risk
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tential funders with the information required to obal risk transfer markets
h to assess local total climate risk, the sum of
ht put greater population and value at riskhangemeasures to address total climate risk on an
ing Group, a partnership between the Global Swiss Re, the Rockefeller Foundation, mmission, and Standard Chartered Bank.
Economics of Climate AdaptEconomic growth remains the moregarding the loss in 2030
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5623
Potential impact from economic growth
Potential imfrom changeclimate
Expected loss from exposure to climateExtreme climate scenario, USD millions
Example city of Hull, UK: The expected loss i
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Incrementaincrease froextreme climchange sce
Incremental increase from economic growth; no climate change
2008, today’s expected loss
The working group studied 1with diverse climate hazards
MaliMali
U.K. / Hull
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Samoa
Florida
Samoa
GuyanaGuyana
US Gulf coast
atation (ECA)st important factor
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+71%
mpact e in
n USD millions
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2030, total expected loss
al om mate
enario
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14
a17 regions s
China North, Northeast
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India Maharashtra
TanzaniaTanzania Anguilla, Bermuda, Barbados , Jamaica, Antigua and Barbuda, St. Lucia, Dominica
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Sustainability risk - ReputatiHeadlines risk: examples
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Hu
Profundo 2008
Sustainability Risk Framewo
Oil & Gas
Policies
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Defense industry
Mining industry
Dams
Forestry & logging
Animal testing
Nuclear proliferation
Human rights & environmental protection
Introduced in November 2009, 2011: 158 r Aligned with IFC Performance Standards, in
standards (e.g. Cyanide code in gold mining Applied to insurance business and investme
application depends on the possible influen
aonal risk
2 16uffington Post, 2010
aork
Exclude companies
Mechanisms
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p exclusion list
Exclude countries exclusion list (Burma, Iran, North Korea, Somalia, Sudan)
Exclude activities
Due diligence: Sensitive Business Risks referral tool
eferralsternational agreements (e.g. NPT), best-practice
g)ents (liabilities and assets); in practice degree of ce
Sensitive Business Risk refeOverview
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
"Recommendations for manenvironmental, social and etchallenges in business trans
Becoming accouactivities.
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Awareness
Identificationissues
Definition of
Guidance an
Governance
Coherence a
Swiss Re has implemented most of the
Sustainability Working Group:
arrals (SBR)
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aaging thical sactions"
untable as an enabler of projects and
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n and assessment of sustainability
f tolerance level
nd empowerment of employees
processes
across group activities and regions
e "Recommendations"
Creating sustainable
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Example micro-scale The R4 Rural Resilience Initiative
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
R4:
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We develop innovative solutions that help tackle
solutions
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solutions that help tacklesustainability challenges. Focus areas are naturalcatastrophes, climate change and insurance coverin emerging countries.
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1.3 billion people living on less than a dollar per day
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Climate-related shocks pose a constant threat to food security and well-being
R4 Rural Resilience Initiative by Oxfam, World Food Programme with the support of Swiss Re
Insurance promotes risk-taking essential to economic growth and development
Insurance paid for by contributing time and labourto local climate adaptation measures, such as crop irrigation and forestry projects
Building on the success of the Horn of Africa Risk Transfer for Adaptation (HARITA) project in Ethiopia
Risk Reduction, Risk Taking, Risk Reserve and Risk Transfer
Example micro-scale The R4 Rural Resilience Initiative
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Example micro-scale The R4 Rural Resilience Initiative Success to date
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
a
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a
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Example macro-scale Caribbean Cat Risk Insurance Fac
Theeargovliqugovup
Thethefac(US
D
T
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
H
SwplaWo
Reducing our environfootprint
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
aility
e CCRIF offers parametric hurricane and rthquake insurance policies to 16 CARICOM vernments. The policies provide immediate uidity to participating governments. Member vernments choose how much coverage they need to an aggregate limit of USD 100 million
e mechanism will be triggered by the intensity of e event (e.g. winds exceeding a certain speed). The ility responded to events and made payments
SD 33 million to date):
Dominica & St. Lucia after earthquake (2007)
Turks & Caicos after Hurricane Ike (2008)
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Haiti (2010)
wiss Re and other overseas reinsurers, programmeced by Aon Benfield Ltd., derivative placed by
orld Bank Treasury
anmental
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We strive to minimise the environmental impact ofour operations and procurement activities. Cutting CO2 emissions and reducing energy intensity are key targets across the Group.
Greenhouse Neutral ProgramWe are greenhouse neutral since
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Greenhouse Neutral Program
Our goal is to use 100% of renewable powlocations where this is technically feasible
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
amme2003
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amme
wer at all e by 2013
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Geothermal energy in MuSince 2010 our location biggest worldwide) uses
River hydropower in SichSome of the voluntary emproject of 3 river hydropo
l i i i d f b
Greenhouse Neutral ProgramProject examples
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
electricity gained from bu
PwC is responsible for the inconsolidated CO2 emissions
We select goods and services
Group purchasing guidelinesminimum standardsWe have guidelines for goods and service
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
Suppliers
which offer best value for money meet high quality standards which have a low environmental impact which observe social standards in their
We give preference to suppliers that havcertified environmental management sy
Comply with international social standa we prohibit the use of subcontracto we prohibit any use of underage or
a
unichin Munich (with 600 employees one of the exclusively geothermal energy.
huan (China)missions reduction certificates came from a ower stations in China substituting
i f il f l
mme
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urning fossil fuels.
ndependent assurance report on our s
as and
s we need for our operations
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supply chain
ve an environmental policy or aystemrds e.g. ors without our permissionr forced labor
COYou2 - Reduce and Gain Pr
The programme is designed to enhance ouemployees’ awareness on climate changeSwiss Re’s climate change commitment m
The programme aims at encouraging staffglobally to make their own personal investCO2-reducing measures. Swiss Re suppormaximum of 50% of any investment (up toCHF 5000 or an equivalent amount adjustlocal cost of living)
A total of 3'953 payouts made from JanuDecember 2011. Most popular investmentfor public transportation household applia
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
for public transportation, household appliahybrid vehicles
Following a third-party evaluation carried the COYou2 Programme is being continued December 31, 2013 at which point it will bevaluated
Exploring and shapinlandscape
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
aogramme
Other4% Alternative
ur and to make
more tangible
f members tments in ts a o max. ted to the
ary 2007 to ts: subsidies ances and
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Payouts by type Payouts by region
Heating24%
Publictransport32% Electricity
23%
individualtransport17%
Europe57%
Asia14%
Americas29%
ances and
out in 2010, until be re-
ag the risk
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We regularly engage in dialogue with our stakeholders to advance our understanding of the changing risk landscape and to promote effective responses to key risks.
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Implementation and commurisk research
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
http://media.swissre.com/documents/pub_climate_ad
Swiss Re ReSource
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
An urban watershed management projRe's 2012 International ReSource AwaManagement
A project in Kibera, the largest slum in2012. The project focuses on water maelements on sanitation, environmentalmanagement into an innovative partici
www.resourceaward.org
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
anication of
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daption_en.pdf, http://www.swissre.com/publications
a
e Award
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ject in Nairobi, Kenya wins Swiss ard for Sustainable Watershed
Nairobi, wins the ReSource Award anagement by building educational stewardship and watershed patory design process.
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Swiss Re is currently rated as the most sustainable company in the insurance sector, positioning itself ahead of 114 sector competitors1
– Held top spot for fourth year in a row
Rating factors go beyond "green"
– Corporate governance, employee development, diversity, etc.
– "Classic" factors like CO2 emissions d i
SustainabilityAn additional reason to invest in S
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
and resource consumption
Swiss Re with above-market share institutional investors who rate themselves as socially responsible
1 Based on SAM survey, conducted by the publisher of the Dow Jones
Thank you
a
w
Swiss Re
2
of
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Sustainability Index (DJSI)
aa
Investor Relations contacts
Hotline E-mail+41 43 285 4444 Investor Relations
Corporate calendar
09 August 2012 Second Quarter 2012 10 September 2012 Investors and Media m08 November 2012 Third Quarter 2012 res21 February 2013 Annual Results
Corporate calendar & contac
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
+41 43 285 4444 Investor_Relations
Eric Schuh Ross Walker+41 43 285 4708 +41 43 285 2243
Simone Lieberherr Simone Fessler +41 43 285 4190 +41 43 285 7299
Legal notice
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th bli ith t th
Commerzbank Sustainability Conference | Frankfurt, 30 May 2012
or other public purposes without the p
Although all the information used wasdoes not accept any responsibility forthe details given. All liability for the acfor any damage resulting from the usepresentation is expressly excluded. Unor its Group companies be liable for arelating to this presentation.
a
@swissre com
results Conference call meeting Monte Carlosults Conference call
Zurich
cts
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@swissre.com
Chris Menth +41 43 285 3878
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a
You are not permitted to create any esentation or to use it for commercial
i itt i i f S i R
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prior written permission of Swiss Re.
s taken from reliable sources, Swiss Re the accuracy or comprehensiveness of ccuracy and completeness thereof or e of the information contained in this nder no circumstances shall Swiss Re ny financial and/or consequential loss
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