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The climate risks identified have been accounted for in the ESG “Balanced Growth” Strategy, in particular the “Trusted Partner in green transformation” environmental pillar. The PZU Group focuses its efforts to reduce climate change on several levels, and at the same time looks for opportunities to grow its business in them. These include:
- appropriate product offerings to enable and encourage customers to take action to reduce carbon emissions;
- using new technologies in the claims and benefits handling process;
- developing advisory services in risk mitigation, building awareness and a more effective approach in clients towards climate change mitigation;
- making investment decisions supporting the development of renewable energy sources and changing the energy mix of the Polish economy;
- engaging in efforts to study and better understand ESG risks within the investment and insurance portfolios;
- engaging in efforts reducing the immediate environmental impact of the PZU Group.
Opportunities related to climate change
Climate change represents a growing risk for the insurance industry, but it also presents new opportunities. Understanding sustainability risks not only helps protect policyholders from losses, but also ensures the long-term availability of insurance products and, in some situations, reduces the overall cost of insurance. Risk analysis makes it possible to identify precisely the risks associated with sustainable development, and in particular climate change. In order to move toward a balanced product offering, the PZU Group’s strategy and all of its activities revolve around responding to identified risks. It is not only a response to clients’ needs and identified climate challenges, but also an opportunity for business development and building market advantage. For instance, managing the climate risk following from the transition of the insurance portfolio to extend and augment the attractiveness of the offering of financial products addressed to low emission branches of the economy and those branches that harness renewable energy also contributes to the development of these branches. In this manner the positive impact exerted by the Group’s product offering on the climate and environment can be manifested. It is worth emphasizing that achieving the goal of adequately adapting society and the economy to climate change requires extensive support activities beyond the scope of the insurance industry.
Indirect impact on climate change
Group companies utilize natural resources in their business operations. However since most of the Group’s companies are financial institutions, their direct climate impact is relatively small. On the other hand, by financing, insuring and investing, these companies can, to a certain degree, influence clients’ conduct, and hence their impact on the environment and climate change.
It is the ambition of the PZU Group to become a trusted partner in energy transition and have an offering that supports the development of a low-emissions economy. Details on how the PZU Group shapes its insurance offer and banking offer so as to support the Polish economy on its pathway towards climate neutrality, and how it exploits climate-related opportunities, are presented in Product offering – prevention and adaptation.
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Best practices of PZU and PZU Życie
Sustainable Investment Policy in PZU and PZU Życie
Sustainable Investment Policy of PZU and PZU Życie lays down general principles for investment, ESG factors taken into account in that process, and the manner of implementing the sustainable investment goals specified in the ESG Strategy and PZU Group’s Strategy. This is applicable when investing own funds and the funds satisfying insurance-related obligations. Furthermore, the Policy indicates example ESG factors taken into account in the investment activities of PZU and PZU Życie. The policy has been adopted by virtue of relevant resolutions. The policy is available on the website HERE.