Sustainability risk management incorporates a comprehensive, long-term approach to managing sustainability risks, the aim being to reduce material risks as well as avoid negative impacts on our reputation and operating income. Conversely, the systematic incorporation of sustainability risks into our insurance and investment activities also creates opportunities for business success as well as service fulfilment for our customers and business partners. In line with the EU regulation on sustainability-related disclosures in the financial services sector (Disclosure Regulation), sustainability factors are considered from a sustainability risk viewpoint as well as from the perspective of their potentially harmful impacts on the environment and society.
Helvetia defines the principles of sustainability risk management in its integrated risk management (IRM) approach and sustainability risk framework.
Sustainability risks are events or situations occurring in the environmental, social and governance arenas that have – or could have – negative implications for the value of an asset or liability, or that affect Helvetia’s reputation and could therefore be damaging to our objectives. Within Helvetia’s risk landscape, sustainability risks are not considered a new and separate risk category but as a driver of existing risk categories. The Helvetia sustainability risk framework sets out Helvetia’s management concept for sustainability factors and risks in detail.
Potential risks in the operating business are identified in the course of due diligence checks on transactions, for example. They are then forwarded for assessment and managed accordingly. Helvetia maintains a list of restricted countries, which is continuously updated. This contains a series of countries in which business activities are either prohibited or where additional due diligence is required prior to concluding business transactions. Risks posed by climate change are taken into account through natural disaster risks and within Group Asset Management in the context of transaction risks.