Zurich's investment portfolio amounts to USD 200 billion. This sum is comparable to the national budget of a small state. The investment strategy focuses on an above-average time horizon and a balanced risk.
Zurich invests the money in order to meet its obligations toward its insured. At the same time, it should also be possible to serve the shareholders. Environmental and social criteria play an equally important role. Zurich was the first insurance company in the world to commit to the UN Global Compact Business Ambition Pledge – the obligation to limit the global temperature increase to 1.5 degrees Celsius above pre-industrial levels. By 2050, Zurich investments are to be 100-percent climate neutral.
To achieve this goal, Zurich is increasingly investing in companies and projects worldwide that aim to solve social, societal or environmental problems. However, the market for impact investments of this kind is still small. Especially for companies that are by nature used to making large investments and are subject to tighter regulation, like insurance companies.
Zurich focuses on so-called ESG criteria when managing its portfolio: E stands for Environment, S for Social and G for Governance.
According to Johanna Köb, Head of Sustainable Investments, the significance of such investments will increase in future: "So-called green bonds are already hugely popular today. These bonds allow companies to raise money on the capital market that is invested exclusively in environmentally friendly projects." Zurich is among the pioneering investors in this market.
Green bonds are hugely popular.
Johanna Köb, Head of Sustainable Investments