Investments focused on Environmental, Social, and Governance (ESG) factors are helping to alleviate portfolio imbalances.
Prisma Life, a life insurer based in Liechtenstein's Ruggell, has been making significant strides in sustainability. In 2020, the company published its second sustainability report, detailing its commitment to environmental, social, and governance (ESG) principles.
Last year, Prisma Life tripled the volume of capital invested sustainably. This focus on sustainability has made its capital investment more resilient to crises, as evidenced by its higher-than-planned capital yield this year.
The company's switch to green electricity and restricted mobility during lockdowns contributed to its climate neutrality in 2020. Moreover, Prisma Life saved 56% of emissions in its coverage stock, amounting to over 19,000 tonnes of CO2 compared to a standard portfolio.
In line with industry practices, Prisma Life encourages intermediaries to integrate sustainability in investment decisions. This is achieved by embedding ESG criteria into investment guidelines, providing training, offering sustainability-themed products, setting sustainability targets, and incentivizing intermediaries for advancing sustainable investment portfolios.
Prisma Life also reduced its operational CO2 consumption by 30 percent last year. Remaining emissions were offset by the purchase of CO2 certificates. The topic of qualification for intermediaries has become very important due to the entry into force of the EU transparency regulation.
Looking ahead, Prisma Life aims to further expand its focus on sustainability in capital investment. From next year onwards, BaFin is expected to scrutinise intermediaries more closely in terms of advice on sustainability.
Customers of Prisma Life can choose from around 160 funds for their fund policies, more than 50 of which are managed sustainably. A confirmation email has been sent to activate a subscription, and checking the spam folder is advised if the confirmation email is not received.
It's worth noting that a direct yield comparison with a portfolio without ESG filters is difficult, but Prisma Life's exclusion criteria have not harmed its yield. Prisma Life is increasingly replacing paper flyers with online media, further reducing its carbon footprint.
In conclusion, Prisma Life is committed to sustainability, both in its investment strategies and its operational practices. The company's emphasis on ESG principles and its focus on sustainable investments set a strong example for the insurance industry. For detailed information about Prisma Life's exact measures, their corporate communications or sustainability reports would be the best sources.
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