Zurich launches USD5 billion impact investment fund

KKR

Zurich Insurance Group has announced that it will build on its successes in responsible investment by more than doubling the number of its impact investments and it will also set innovative new impact targets.

Zurich expands impact investment portfolio commitment to USD 5 billion

Commitment to investment volume is coupled with innovative impact targets, including the avoidance of 5 million metric tons of CO2 equivalent emissions and improving lives of 5 million people per year

Zurich believes it is the first private-sector investor to introduce impact targets for its investment portfolio

Earlier this year, Zurich announced that it had achieved its multi-year goal of investing USD 2 billion in green bonds, part of its impact investing portfolio. Going forward, it will target USD 5 billion for the entire portfolio of impact investments, more than double the original commitment of USD 2 billion. To achieve this, Zurich will invest in different types of impact investments in various asset classes and around the globe. In addition, it will establish a measurement framework to track the impact of these investments, with the goal of avoiding five million tons of CO2 equivalent emissions annually and improving the lives of five million people per year.

Zurich is a not just a signatory to the principles for sustainable insurance developed by the UN Environment Finance Initiative, but is also turning that into action. This is the kind of leadership and broader trend we need to see in the financial sector.

Erik Solheim, head of UN Environment, under-secretary-general of the United Nations

Erik Solheim, head of UN Environment, under-secretary-general of the United Nations said: “Zurich is a not just a signatory to the principles for sustainable insurance developed by the UN Environment Finance Initiative, but is also turning that into action. Through steps like introducing innovative impact targets for its investment portfolio, disengaging from coal-intensive businesses in its insurance and investment activities, and enhancing community flood resilience, Zurich is already making a positive impact.

This is the kind of leadership and broader trend we need to see in the financial sector, and I’m convinced such commitments to sustainable practice will become commonplace. After all, a resilient, low-carbon, sustainable and inclusive economy is also perfectly aligned with sound business practice.”