Best practices of PZU and PZU Życie
Sustainable Investment Policy of 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 PZU and PZU Życie investment activities. The policy has been adopted by virtue of relevant resolutions. The policy is publicly available at Company’s website.
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 activities to reduce climate change on several levels, and at the same time looks for opportunities to grow its business in them. These include:
- adequate product offering allowing and encouraging clients to pursue efforts to limit carbon dioxide 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
Risk analysis makes it possible to identify precisely the risks associated with sustainable development, and in particular climate change. The PZU Group’s strategy and entire operations are focused around addressing the risks identified, so that it is possible to effect a transition towards a sustainable product offer which not only corresponds to the clients’ needs or identified climate challenges, but is also an opportunity to grow the business and build a competitive edge on the market. 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 sectors of the economy and those sectors that harness renewable energy also contributes to the development of these sectors. In this manner the positive impact exerted by the Group’s product offering on the climate and environment can be manifested.
Direct impact on climate change
Group companies are running their business using natural resources. 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 section.
In 2023, the PZU Group plans to update the policies so that they better address the climate risks identified, correspond to international organization guidelines, and support business growth.