2013 Corporate Responsibility Report Enabling Sustainable Progress

2013 Corporate Responsibility Report Enabling sustainable progress contEnts the 2013 corporate Responsibility Report sets out our commitment as a responsible company and describes the actions we have taken in 2013 to put this commitment into practice. Executive statement 2 Who we are and what we do 4 Our approach to corporate responsibility 8 Creating solutions for sustainability 14 Extending our risk intelligence 22 Exploring and shaping the risk landscape 33 Reducing our environmental footprint 41 Being an employer of choice 51 Ensuring good governance 61 The Swiss Re Foundation 63 Corporate responsibility in context: Economics of Climate Adaptation (ECA) 64 Other Swiss Re publications 66 Independent assurance report to the management of Swiss Re Ltd, Zurich 68 Memberships, awards and index listings 70 The Principles for Sustainable Insurance (PSI): Our public disclosure of progress 72 GRI content index, with UN Global Compact Communication on Progress references 73 Cover 2013 Corporate Responsibility Report With their large concentrations of people and economic Enabling sustainable progress assets, cities can be highly vulnerable to natural disasters. In new York city, this was dramatically demonstrated by Hurricane sandy. We carried out an Economics of climate Adaptation (EcA) assessment that showed how the city can reduce future damage from natural disasters through cost-effective measures. the EcA methodology and the assessment for new York city are described on pages 64–65. ExEcutIvE stAtEmEnt Dear stakeholders In 2013, we had the privilege of the strategic priorities we have defined celebrating swiss Re’s 150th anniversary. have remained stable in recent years. this special moment in the history of Below, we would like to give you a short our company points to an essential overview of last year’s key actions and characteristic of our business: the focus achievements in these priority areas. on the long term. our understanding of corporate responsibility is a natural In our core re/insurance business we extension of this long-term perspective. It continue to develop solutions that make a means we seek to support sustainable tangible difference to people’s lives, by progress by helping our clients and offering financial protection against risks society at large to tackle the large-scale such as earthquakes, windstorms, drought, risks they face – now and in the future. illness etc. through our ongoing involvement in the Grow Africa Partnership, With the 2013 corporate Responsibility for example, we helped to insure more Report, we wish once again to inform you African smallholder farmers against bad about the actions we have taken to meet weather that threatens their crops and thus this commitment. In this latest edition of their livelihoods. And in Bangladesh, we our report, we have made an important have contributed to an innovative project improvement which underlines our that offers financial compensation to sense of accountability: All its five main vulnerable communities when they are hit chapters have now received independent by floods. assurance, up from three chapters last year. the report also reflects – and our solutions also extended to one of the confirms – two commitments we have world’s most highly developed cities, made to the united nations. Firstly, new York. In the wake of Hurricane sandy, it continues to serve as our annual we helped conduct a major study on communication on Progress for the UN climate adaptation that shows how the Global compact. secondly, it includes city can anticipate and reduce the damage our “public disclosure of progress” for caused by such storms in the future. the UNEP FI Principles for sustainable Wherever we are involved in the develop- Insurance (PsI), in which we have been ment of such solutions, they have one taking a leading role. thing in common: they all require close cooperation between multiple partners. 2 Swiss Re 2013 corporate Responsibility Report ExecutivE statement Walter B. Kielholz Michel M. Liès In our risk management, the focus remains As a company operating around the world, the swiss Re Foundation, we put this on detecting and avoiding risks that may we inevitably cause certain environmental engagement on an even more solid basis. pose a threat to sustainable progress. impacts. though they are comparatively marking its first full operational year, We have specific tools in place to address small, we have worked hard to reduce the Foundation has published a report sustainability, political, regulatory and our footprint. In 2013, the first phase of which describes in detail how it helps emerging risks. In 2013, we made our pioneering Greenhouse neutral communities increase their risk prepared- important adjustments to four policies of Programme came to an end. over the ten ness and resilience. this comprehensive our sustainability Risk Framework; they years since its launch in 2003, we publication replaces the “corporate reflect recent risk developments affecting managed to cut our CO2 emissions per citizenship” chapter we used to include in the defence industry, nuclear weapons employee by 56.5%. As part of our renewed the corporate Responsibility Report, and proliferation, oil and gas exploration, and commitment until 2020, we have already we invite you to read both publications. forestry and logging. launched a new seven-year cycle of our popular COyou2 Programme, which offers Finally, we would like to address our own Dialogue with our partners and our employees grants for emissions- employees. no company can prosper for stakeholders remains as important as ever cutting investments. 150 years without a skilled, diverse and to tackling the key risks facing society; committed workforce – this is as true now without this dialogue, developing effective A strong sense of philanthropic as it has ever been. We would like to thank responses simply is not possible. mirroring engage ment has long been a key element all our present and former employees for this fact, the celebrations for our 150th of our commitment as a responsible their outstanding work over the years. In anniversary put a strong focus on dialogue company. through the establishment of return, we strive to offer the kind of culture and partnership. under the motto “open and career opportunities that will make minds connecting generations”, we set swiss Re an attractive meeting place for up a range of dialogue events and formats talented people for years to come. around our top topics. they included open minds Forums, a global risk perception survey and an open minds blog. Zurich, may 2014 Walter B. Kielholz Michel M. Liès chairman of the Board of Directors Group chief Executive officer Swiss Re 2013 corporate Responsibility Report 3 WHo WE are AnD what WE Do swiss Re aims to be the leading player in the wholesale re/insurance industry. We seek to outperform peers in core areas, combined with a smart expansion into areas where additional growth opportunities exist. swiss Re at a glance from policyholders”, our ten biggest organisation has settled well into the new markets at the end of 2013 were: the Group structure. Higher transparency and swiss Re is a leader in wholesale united states, the united Kingdom, accountability drive a positive business reinsurance, insurance and risk transfer Australia, china, France, canada, Germany, culture and allow for agility and flexibility. solutions. our clients include insurance Ireland, Japan and Italy. over the full year, companies, corporations and public sector they accounted for 80.1% of the Group’s We continue to expand our business bodies. our knowledge and capital total business. where we see opportunities for sustainable strength enable the risk-taking on which growth, especially in corporate solutions, economies depend. In 2011, we reorganised our business into in high growth markets and in funding three Business units: Reinsurance, longer lives and health. Headquartered in Zurich, switzerland, corporate solutions and Admin Re®. the swiss Re has operations around the globe. swiss Re Ltd, the Group’s holding At the end of 2013, we had 67 office company, is a joint stock company, listed locations in more than 20 countries. Based on the sIx swiss Exchange, domiciled in on “net premiums earned and fee income Zurich and organised under the laws of switzerland. no other Group companies have shares listed. Our global presence Europe (including middle East and Africa) net premiums earned and fee income in 2013 11.3 (USD billions) (USD 10.7 billion in 2012) number of office locations * as of 31 December 2013 22 (22 in 2012) number of employees Regular staff as of 31 December 2013 7 324 For more information see (7 186 in 2012) swissre.com/about_us/ * counting all Zurich offices as one location 4 Swiss Re 2013 corporate Responsibility Report WhO we are and What we dO Swiss Re Dots Imagery Title: Arrows Category: Symbolic images 150 years of managing risks In 2013, we celebrated our 150 Year Anniversary: swiss Re was founded in 1863, prompted by the fire that had swept through the thriving town of Glarus in may 1861. the fire highlighted the threat to the swiss insurance system posed by catastrophic losses. together with our clients and partners, we have since been learning and gathering the knowledge and expertise needed to manage diverse portfolios of risks all over the world. For more information see 150.swissre.com Scriptographer Plugin 10 Americas Asia-Pacific total 50 11.5 6.0 28.8 (USD 9.5 billion in 2012) (USD 5.2 billion in 2012) (USD 25.4 billion in 2012) Copyright © 2010 Swiss Re 34 11 67 (31 in 2012) (11 in 2012) (64 in 2012) 2 955 1 295 11 574 (2 845 in 2012) (1 162 in 2012) (11 193 in 2012) * counting all Zurich offices as one location Swiss Re 2013 corporate Responsibility Report 5 WhO we are and What we dO One Group, three businesses the three distinct Business units of the swiss Re Group correspond to our core activities in reinsurance, insurance and risk transfer solutions.

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