Swiss Re : 2022 FULL-YEAR Sustainability Report

Sustainability

Report

2022

Executive	Approach	Risk	Underwriting	Investing	Knowledge	Governance	Operations	People	Appendix
statement		management			sharing

2022 sustainability highlights

Sustainability in underwritingResponsible investing

USD 4.8bn	212m	USD 3.8bn	USD +751m
Natural catastrophe premiums	Life & Health policies	Green, social and	Capital deployed in social and
across Swiss Re Group	(in force) reinsured	sustainability bonds	renewable energy infrastructure
			debt, relative to base year 2019

11 970

Solar and wind farms for which re/insurance cover was written

>	-42%
100 000
Number of potential transactions	Reduction of the weighted
screened for ESG risk exposure	average carbon intensity
	(Scope 1 and 2 emissions) of
	the corporate bond and listed
	equity portfolio, relative to
	base year 2018

80%

Share of the top 20 emitters in the actively managed listed equity portfolio engaged on "Alignment of business model with 1.5°C target"

Operations and people

USD112/tonne CO2e

Internal Carbon Steering Levy

100%

Proportion of Segment I and Segment II suppliers that have completed their ESG assessment

Key sustainability ratings

AAA

MSCI ESG rating as of May 20221

73%

Absolute reduction in GHG emissions from business air travel relative to base year 2018

83%

Employee engagement score

B

CDP Climate Change

Score 2022

24%

Share of carbon removal certificates in the GHG emissions compensation mix

87/100

S&P Global ESG Score 2022 as of October 2022

• For more information on MSCI ESG ratings, including their methodology and disclaimer statement, please refer tothis page.

• Swiss ReSustainability Report 2022

Executive	Approach	Risk	Underwriting	Investing	Knowledge	Governance	Operations	People	Appendix
statement		management			sharing

Contents

2022 sustainability highlights

Executive statement

Swiss Re at a glance

2	Sustainability in underwriting	22		Our people	60
	Risk transfer solutions	23		HR vision	61
4	Transactions and initiatives	23		Group People Strategy	61
6	Engaging with stakeholders and clients	31		Diversity, Equity & Inclusion	64

Selected index memberships and ratings

Key sustainability milestones

Reporting profile and reporting frameworks

Swiss Re's approach to sustainability

Group Sustainability Strategy

Materiality assessment

Supporting the Sustainable Development Goals

Fostering resilient societies: Swiss Re Foundation

Sustainability targets and progress in 2022

Sustainability risk management

ESG Risk Framework

Decarbonising Swiss Re's business model

• Responsible investing

• Responsible Investing strategy Stewardship

10 Promoting responsible investing Responsible investing governance

framework

11

1. Knowledge sharing

15 Governance and compliance Corporate governance

1. Compliance
2. Sustainable operationsCO2NetZero Programme

1. Environmental data and GHG
2. emissions disclosure Sustainability in the supply chain

21 NetZeroYou2 Programme

33	Appendix	65
34	Sustainability data	66
39	Swiss Re position statements	81
41	Swiss Re memberships	82
	GRI reference table	84
41	SASB reference table	88
	PSI disclosure of progress	90
42	Disclaimers	92
46	Independent limited
47	assurance report	93

48 Cautionary note on forward-

	looking statements	97
51Contact details	99

52

57

58

59

Swiss Re's Annual Report 2022

Swiss Re's Annual Report includes the Business Report 2022 and the Financial Report 2022. In addition, Swiss Re publishes this comprehensive Sustainability Report.

All three reports can be found at reports.swissre.com/2022/

• Swiss ReSustainability Report 2022

Executive	Approach	Risk	Underwriting	Investing	Knowledge	Governance	Operations	People	Appendix
statement		management			sharing

Executive statement

Partnering for sustainable progress

Sergio P. Ermotti	Christian Mumenthaler
Chairman of the Board of Directors	Group Chief Executive Offiicer

Dear stakeholders,

Over the past year, the twin challenges of climate change and energy security have dominated the headlines as the COVID-19 pandemic has faded away. For the second year in a row, insured losses caused by extreme weather events such as Hurricane Ian, winter storms in Europe and flooding in Australia and South Africa have exceeded USD 100 billion. At the same time, the energy crisis triggered by the war in Ukraine reinforced the importance of transitioning to

• low-carboneconomy to reduce society's reliance on fossil fuel-based energy sources.

The renewed sense of urgency to tackle climate change is in line with our decision to sharpen the focus of our 2023-2025 Group Sustainability Strategy on two broad ambitions: "advancing the net-zero transition" and "building societal resilience."

Advancing the net-zero transition According to a recent report from the International Panel on Climate Change, global CO2 emissions must be almost halved by 2030, and net-zeroemissions achieved by 2050 to limit global warming to 1.5°C above pre-industriallevels. At Swiss Re, we commit to reaching net-zerogreenhouse gas (GHG) emissions across our entire business by 2050. To have a real impact, however, such an undertaking requires collaboration across different economic sectors and value chains, private-publicpartnerships, decisive action from governments and the establishment of broadly accepted targets in line with the Paris Agreement.

In 2022, Swiss Re played an important role in addressing the challenge of quantifying emissions associated with underwriting portfolios. As a founding member of the UN-convenedNet-Zero Insurance Alliance (NZIA), Swiss Re chaired the Partnership for Carbon Accounting Financials (PCAF) Working Group that developed a widely- accepted methodology for measuring insurance-associated emissions. This methodology will be instrumental in helping re/insurers measure the emissions

of their underwriting business and report on progress toward reducing the carbon footprint of their portfolios.

Building on this work, we also chaired NZIA's efforts to develop a Target-Setting Protocol, which was launched at the World Economic Forum in January 2023. This paves the way for re/insurers to individually set interim decarbonisation targets for their underwriting portfolios in line with a transition pathway to limit global warming to 1.5°C. All NZIA members, including Swiss Re, have committed to publishing baseline metrics for insurance-associated emissions according to the PCAF standard as well as a first interim target based on the NZIA Target-Setting Protocol in July 2023.

Within our underwriting business, we have continued to "advance the net-zero transition" by providing risk transfer solutions to mitigate risks associated with renewable energy infrastructure projects and helping to unlock the funds necessary to advance the energy transition. For example, Swiss Re's re/insurance solutions are supporting the expansion of offshore wind farms in South Korea, while a credit-risk insurance solution

• Swiss ReSustainability Report 2022

Executive	Approach	Risk	Underwriting	Investing	Knowledge	Governance	Operations	People	Appendix
statement		management			sharing

developed for a German bank facilitates the financing of various renewable energy projects across Europe, the Americas and Asia-Pacific.

We have also continued our efforts to decarbonise our underwriting portfolio. During the year, we tightened our Oil and Gas Policy for direct and facultative re/insurance portfolios and continued to implement the phase-out of thermal coal-related re/insurance in OECD countries by 2030, and in the rest of the world

by 2040.

In line with our commitment to transition the investment portfolio to net-zero GHG emissions, we continued to invest in social and renewable energy infrastructure debt in 2022. We also reached 95% of our year-end 2024 target to hold at least USD 4 billion in green, social and sustainability bonds. Additionally, we reduced the carbon intensity of our combined corporate bond and listed equity portfolio by 42% relative to our base year of 2018, putting us on track to meet our target of a 35% reduction by the end

of 2024.

Although our operational GHG emissions are relatively low compared to other industries, we aim to reduce them as much as possible. In 2022, we reduced GHG emissions from business air travel by more than 70% compared with 2018. Supported by prevailing travel restrictions during the first quarter of 2022, our internal Carbon Steering Levy and stringent CO2e-budgets for business flights were key drivers of the

reduction. Flight-related emissions are expected to rise again, but we expect to continue meeting our target of reducing business air travel GHG emissions by at least 50% relative to the 2018 base year.

To reach net-zero emissions as a society, for every tonne of GHG emissions that cannot be avoided, an equivalent amount of CO2 must be removed from the atmosphere and stored permanently. The carbon removal industry is still in its early stages, and financial institutions can play an important role in financing carbon removal solutions. In 2022, we joined the NextGen Carbon Dioxide Removal Facility as one of the five founding buyers to scale up carbon removal technologies and catalyse the market for high-quality carbon removals, compensating for our remaining operational emissions in scope. Carbon removals accounted for 24% of our compensation mix in 2022, and we plan to increase this share to 100% by 2030.

Building societal resilience

As a re/insurer, we are both impacted by climate change and play a role in tackling it. Consistent with our sustainability ambition of "building societal resilience", we provide natural catastrophe re/insurance, helping governments, corporates and individuals with reconstruction efforts in the wake of a natural disaster.

Moreover, our efforts to build societal resilience extend to other aspects beyond climate, including promoting awareness and providing insurance protection through our life and health businesses.

Zurich, 16 March 2023

Sergio P. Ermotti

Chairman of the Board of Directors

After almost two years of working remotely, it has been rewarding to see many employees return to our offices. We have enjoyed the in-person exchange of ideas that sparks innovation and draws on the diversity of perspectives and experiences of our people. Diversity on the Board of Directors is also an important priority for Swiss Re.

In 2022, we committed to reaching 30% female representation on the Board of Directors by the 2023 Annual General Meeting. Having nominated two women for election to the Board at the AGM 2023, we have made significant strides towards meeting this target. Following the recently announced Group reorganisation, female representation in the Group Executive Committee will also further increase.

We have witnessed growing interest in sustainability among clients, investors, employees and civil society. Sustainability reporting frameworks as well as legal and regulatory requirements are evolving quickly, putting pressure on companies to enhance disclosure. While our long history of voluntary sustainability reporting has prepared us to meet evolving disclosure requirements,

it is important that regulatory bodies align their efforts to establish a minimum global reporting baseline that is well coordinated and focuses on relevant information.

At Swiss Re, we remain committed to maintaining a dialogue with our clients on sustainability, building effective stakeholder engagements and communicating about progress towards our targets.

Christian Mumenthaler

Group Chief Executive Officer

• Swiss ReSustainability Report 2022