AXA and the Principles for Sustainable Insurance Overview

Transcription

1 AXA and the Principles for Sustainable Insurance Overview Isabella Falautano, Responsabile Relazione Esterne e Istituzionali, Chief Corporate Responsibility Officer, Gruppo AXA in Italia Seminario FeBAF, Salone del Risparmio, 19 aprile

2 INDEX PSI - Principles for Sustainable Insurance A pioneering global sustainability framework and initiative AXA as a signatory of the the UN PSI The 4 Principles: A roadmap for integrating CR into our core business processes Some examples of relevant AXA initiatives Appendix: A key commitment of AXA in Italy: thought leadership

3 Rio+20 conference, 19 June 2012: signature of the the UN Principles for Sustainable Insurance The PSI are a global best practice framework consisting of 4 guiding principles: 1. We will embed in our decision-making environmental, social and governance issues relevant to our insurance business. 2. We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions. 3. We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues. 4. We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles. DEVELOPMENT PROCESS Creation of Insurance Working Group White paper: Insuring for Sustainability (May 2007) Global ESG Survey (March 2009) White paper: Global State of Sustainable Insurance (Oct. 2009) Global consultation version (March 2011) First draft of PSI (Dec 2010) Launch (Rio - June 2012) Presidency of Insurance Commission: AXA Presidency: Munich RE 2

4 UN Principles for Sustainable Insurance Why the insurance industry? (1/2) License to operate CR as a key driver of value Growth and opportunity Business Formal contract Semi-formal contract Frontier expectations Society Expectations and rules on business are explicit and often bound by law (e.g.: regulation, tax policy, private contracts) Societal expectations of business are not codified but implicitly agreed (e.g.: treatment of workers) Expectations not (yet) consolidated on emerging issues and risks, but with a growing importance in business reputation and image In a fast changing world, external pressures and global trends are progressively affecting business model, with an increasing role of Corporate Responsibility for the insurance sector: Not just doing good, but good business 3 3

5 Why the insurance industry? (2/2) A unique positioning to tackle risks and opportunities arising from ESG issues The UN looks forward to working with all sectors of society towards the global embrace of this important new initiative as we shape the future we want (Ban Ki-moon, UN Secretary General) Insurance sector: over USD 4.5 trillion in world premium volume; over USD 24 trillion in global assets under management It s not about philanthropy! It s about recognizing fundamental economic value of natural capital, social capital and good governance What is Sustainable insurance?: UN framework definition A strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities in the insurance business associated with ESG issues Sustainable insurance aims to reduce risk, develop innovative solutions, improve business performance and contribute to environmental, social and economic sustainability 4

6 UN Principles for Sustainable Insurance Target and sphere of influence Over 500 insurance industry participants and stakeholders; Over USD 500 billion in gross premiums written, more than 10% of world premium volume ESG issues that can be relevant to insurance: Climate risks, extreme weather events Natural catastrophe risks & Disaster risk reduction Resource depletion Biodiversity loss and ecosystem degradation Water management and scarcity Food insecurity & Pollution Human rights and labor standards Social and financial exclusion Emerging health risks and pandemics Ageing populations Regulations (building codes, workplace and product safety standards, environmental regulations) Transparency and accountability Business principles and ethics Corruption and Misaligned interests Sphere of influence of the Principles: Community Governments, regulators & other key stakeholders Clients & business partners Own business strategies & operations 5

7 PSI and PRI: A holistic global sustainability framework for the insurance industry Core business strategies and operations Insurance Investment management Principles for Sustainable Insurance Principles for Responsible Investment Liability side Asset side 6 Total balance sheet approach

8 AXA as a signatory of the UN PSI The 4 Principles: A roadmap for integrating CR into our core business processes Responsibility is an inherent part of our mission As a company whose business is to protect people over the long term, we have a responsibility to leverage our skills, resources, and risk expertise to build a stronger and safer society Corporate Responsibility is not a program. It is a way to be and to do our work Becoming a signatory of the PSI, AXA confirms the CR key commitment to ESG issues How we make alive PSI in our business? 7

9 Some examples of AXA initiatives Principle 1: We will embed in our decision-making environmental, social and governance issues relevant to our insurance business ESG issues in business operations at Board and Excom levels ESG issues monitored through regular reporting and CR maturity KPI ESG issues into recruitment, training and engagement programs AXA University, compliance e-learning, CR Week,.. ESG issues in risk management, underwriting and capital adequacy decision-making processes Controversial weapons exclusion policy and Group Sanctions policy banning business in certain countries ESG issues in P&C Commercial underwriting guidelines, excluding high risk sectors (controversial weapons, animal testing,..) Integrate ESG criteria in products, services and in claims management Group target on Green commercial offers an various «green» products Group Microinsurance toolkit + local products* Clear Communications program and Life PAP guidelines Bodily Injury Ethics Guide on case management (P&C);under development: SMS meteo alerts Responsible Investment through AXA Investment Managers, the Group multi-expert provider of investment solutions : UN Principles for Responsible Investment - PRI signatory, RI tools and publications, specific RI funds Wide range of literacy programs on risk reduction and ESG issues (see actions on principle 3) *E.g.: India for personal accidents and Morocco for credit insurance & savings; partnership with Grameen-Jameel Microfinance Ltd, a subsidiary of AXA Group, to provide micro insurance in the Middle East, Turkey and North Africa 8

10 Some examples of AXA initiatives Principle 2: We will work together with our clients and business partners to raise awareness on environmental, social and governance issues, manage risk and develop solutions Provide clients and suppliers with info and tools that help them manage ESG issues and integrate them into selection processes for suppliers For clients: Local Risk Research & Education programs For suppliers: Group procurement CR strategy CR clause in >75% of contacts Dialogue with market participants on the company s expectations and requirements on ESG issues and promote the adoption of the PSI UNEP-FI Insurance Commission (chaired until 2011) Other UNEP partners already supporting the PSI initiative (eg. Munich Re, Swiss Re,..) 9

11 Some examples of AXA initiatives Principle 3: We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues Collaboration with the OECD High Level Risk Forum Active member ship of several CR-related structures (es. CSR Europe, UNEP-FI Insurance Commission) and dialogue with NGOs Several Group and local risk reduction projects: Group level: CARE (NGO) program (including Where the Rain Falls research paper) Junior Achievement program (financial risk education programs) AXA Research Fund: climate change research European Road Safety Charter and Group e-learning module on road safety Series of AXA Paper (Longevity, Retirement, Climate Risks) External events: 2011Longevity conference; 2012 on climate risks Local level: AXA Prevention, AXA France Foundation on Health and road safety AXA Equitable: Financial education for women AXA UK: My Budget Day + AXA in Italy commitment on though leadership (see the appendix for further info) Italian AXA Paper series on risks: n.4 on climate change, may 2013 Italian AXA Forum with ANIA AXA Research Fund: AXA Bocconi and EIEF 10

12 Some examples of AXA initiatives Principle 4: We will demonstrate accountability and transparency in regularly disclosing to our stakeholders our progress in implementing the Principles Systematic disclosure through Group website and Activity & CR annual report Assessment, measurement and monitoring of company ESG performance AXA is a member of key socially responsible investing (SRI) indexes (e.g. Dow Jones Sustainability Indexes, FTSE4Good3, ) AXA's ESG performance places well above the industry average 74/100 vs an average of 50 in Dow Jones Indexes and SAM 6th highest performing company (75/100) based on ESG criteria, in a global list of 126 insurers by the social rating agency Sustainalytics Effective responses to climate change: AXA named to the Carbon Performance Leadership Index for the second consecutive year within the Carbon Disclosure Project (CDP) 11

13 Appendix A key commitment of AXA in Italy: thought leadership

14 How we make alive Principle 3 in Italy? Thought leadership vision (1/2) ( ) we have entered a world risk society ( ) The difference between industrial and risk society is first of all a difference of knowledge of self reflection on the dangers of developed industrial modernity - Ulrich BECK Our ore business is to protect people, managing risks in a long-term relationship with our clients Beyond insurance as usual (products and services), as an inherent part of our mission, we have the responsibility to leverage this expertise in risk reduction for society To make this noble purpose real: focus on a transversal theme, closely linked to the heart of our business, risks research and education This approach is even more important in the current scenario: we are living in a world of new and emerging risks, where knowledge and awareness are key drivers not to be limited by risks 13

15 How we make alive Principle 3 in Italy? Thought leadership vision (2/2) Position AXA in Italy as a key reference in risks research and education We aim to foster a safer and stronger society over the long-term, within the fil rouge of caring about the FUTURE 15 Increase awareness through education for the adults of tomorrow, the most affected by today's trends Anticipate future trends and prevent risks via knowledge& research, with long term thoughts and banning short-term thinking Enhance intergenerational bridges dialoguing and involving key local stakeholders: Governments and regulators, Business and industry, Academia and scientific community, Civil society and CR partners, Media partners, Employees and distribution network Some of the external initiatives on thought leadership of AXA in Italy Position paper and researches - Italian AXA Paper on risks: next number, n.4, on climate change, may Researches on strategic social trends linked with external events External events on long-term frontier issues : - Italian AXA Forum with ANIA AXA Research Fund - AXA Bocconi and EIEF Educational path on private welfare and pensions for young generations + commitment on road safety Local CR partnership on risk prevention for society (e.g. IEO,..)