Zurich invests up to USD 1 billion to help communities adapt to climate change Montag, 18. November 2013 - 10:01
Zurich invests up to USD 1 billion to help communities adapt to climate change
Zurich looks to become largest global green bonds investor with an initial target of USD 1 billion. This is a part of Zurich’s overall responsible investment strategy. With this impact investment, the company will effectively support more sustainable economic development and climate resilience projects – without sacrificing investment return.
Zurich, November 18, 2013 – Zurich Insurance Group (Zurich) announced today its intention to invest up to USD 1 billion into green bonds issued by the World Bank, International Finance Corporation (IFC) and other development institutions. Green bonds are impact investments, which fund projects around the world that help mitigate climate change and assist communities to adapt to its consequences. As of today, the commitment made by Zurich is the largest investment in green bonds globally and is a part of the company’s responsible investment strategy.
Cecilia Reyes, Chief Investment Officer explained: “Responsible investment at Zurich is about “doing well and doing good”. We manage our investment portfolio of over USD 200 billion in a way that achieves superior risk-adjusted returns relative to liabilities for the benefit of our customers and shareholders, while also creating value for our employees and communities in which we live and work. Zurich recognizes that creating value for all its key stakeholders is crucial to long-term success. Green bonds are a good fit with Zurich’s overall investment strategy as well as its impact investing aspirations, targeted to support sustainable development and resilient communities. It is an opportunity to invest both with impact and at a return fully compensating for the risk”.
Zurich has a direct interest in sustainable economic growth and the development of resilient communities. Also, as a global insurer with a fast growing footprint in many emerging markets, the Group is directly exposed to the challenges related to potential effects of climate change or the intensive use of scarce natural resources. In line with this, Zurich is building a portfolio of impact investments addressing these challenges. Through this particular investment, Zurich will effectively support more sustainable growth and development – without sacrificing investment return.
Doris Herrera-Pol, Director and Global Head of Capital Markets, World Bank said: “Zurich will be supporting projects in our member countries for climate change mitigation and adaptation. An example of a project that would be eligible for support from green bonds is the Private Sector Renewable Energy and Energy Efficiency Project in Turkey. The project invests in solar, geothermal and other renewable energy resources and in energy efficiency in the private sector. This project is reducing carbon dioxide emissions by over 1.4 million tons of per year. By investing in World Bank green bonds, Zurich is not only making a good financial choice, but will also help achieve a positive social and environmental impact, while promoting governance practices consistent with high standards of integrity”.
BlackRock was selected to be responsible for security selection, buying or selling green bonds for the portfolio, in accordance with guidelines, clearly defined by Zurich. Ken Wilson, Vice Chairman, BlackRock said: “We are proud to team up with Zurich as the company commits to the green bond market segment at this important stage of the market's development. By encouraging transparency, liquidity, rigorous inclusion credentials, and impact reporting, we can together contribute to the creation of a robust and credible market, which will have a greater impact than any singular investment in green bonds. BlackRock's commitment to impact investing spans asset classes and enables our clients to access investment strategies that target a reasonable risk-adjusted rate of return in addition to positive and measureable social or environmental outcomes”.
Further information
Corporate responsibility is a key part of Zurich’s strategy and supports our mission to help our customers understand and protect themselves from risk. We focus on seven areas related to our core business and contribute to society by applying our insurance, risk management and investment expertise. These areas are:
- Enhancing community flood resilience (see more on Zurich’s global flood resilience program)
- Investing our Group assets responsibly (Zurich is a signatory of the Principles of Responsible Investment (PRI))
- Working with our corporate customers to help them understand and manage their corporate responsibility risks
- Community investment locally and through the Z Zurich Foundation
- Environment, health and safety management in our office buildings
- Diversity and inclusion in our workforce
- Responsible supply chain management
Zurich participates in the Dow Jones Sustainability Indices (DJSI) and FTSE4Good. Zurich has been a signatory of the UN Global Compact since 2011 and we are committed to making the Global Compact and its principles part of Zurich’s strategy, culture and day-to-day operations.
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Zurich Insurance Group (Zurich) is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. It offers a wide range of general insurance and life insurance products and services for individuals, small businesses, mid-sized and large companies as well as multinational corporations. Zurich employs about 60,000 people serving customers in more than 170 countries. The Group, formerly known as Zurich Financial Services Group, is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise, and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. World Bank Green Bonds were first issued in 2008 to support projects and programs in borrowing member countries that help mitigate climate change, and help affected countries adapt to its effects. Information for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2013, BlackRock's AUM was $4.096 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares(r) (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions(r). Headquartered in New York City, as of September 30, 2013, the firm had approximately 11,200 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
Contact Zurich Insurance Group Ltd Mythenquai 2, 8022 Zurich, Switzerland www.zurich.com SIX Swiss Exchange/SMI: ZURN, Valor: 001107539
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