The world has evolved its approach to sustainability. From specialised think-tanks, the main debate has now moved on to the G20 and other Financial Stability platforms. This makes clear that the financial sector (including the insurance sector) has an important role in a more sustainable world.
As an insurance company based on the idea of solidarity communities, we at Baloise Vie Luxembourg S.A. (‘Baloise’) seek to create sustainable value. We are aware of the importance of taking responsibility and putting our actions in the service of sustainable development within the insurance sector.
Responsible, committed behavior and sustainable management that involves the relevant stakeholder groups are an integral part of our strategic orientation. We align ourselves with our value creation model, which applies to the entire Baloise Group and is fully aligned with our business model. It illustrates the cycle of how we create sustainable value from various resources - employees, customers, society, environment, partners and investors.
In this context the European Union has issued the Regulation (EU) 2019/2088 of 27 November 2019 on sustainability related disclosures in the financial services sector (referred to as the ‘SFDR’), which came into force on 10 March 2021. Thereupon, we publish the following sustainability-related information in accordance with the SFDR.
For any questions or information on this subject: esg@baloise.lu.
For Baloise, sustainable development and the insurance business have significant similarities: long-term activities and responsible handling of risks and resources. This is how we represent an attractive and sustainable investment. We are convinced that the integration of ESG-criteria in our investment process will have a positive impact on the return and will reduce ESG-risks. In addition, investing responsibly also allows us to create positive added value for the environment and society.
For the own funds and guaranteed compartment managed by Baloise, the principles laid out in the general Responsible Investment Strategy of Baloise are applicable.
The Responsible Investment Strategy governs the integration of ESG factors in investment decisions and is based on three strategic pillars, as illustrated below.
- Exclusion: we exclude companies from the investment universe. Companies can be excluded if they conduct business activities related to controversial weapons or if they are involved in the coal industry (more than 30 percent of total revenue).
- Integration: we integrate sustainability factors into investment analysis by taking into account ESG ratings. Companies with a rating below B (according to data from MSCI Inc.) are not included in the investment universe.
- Proxy voting: as a responsible shareholder, we exercise our voting rights on Swiss shares based on the principles of sound and ethical management.
A detailed description of the outlined indicators utilized within the investment-decision process of Baloise can be found within the Responsible Investment Policies of Baloise.
- Baloise Responsible Investment Policy for insurance funds of Baloise Group
- Baloise Active Ownership Policy
With regards to the external funds, the collective internal funds and the dedicated internal funds the investment strategies of the respective third-party asset managers apply. When applicable, we refer to the investment policy of the external asset managers and provide appropriate references to the respective policies on our website.
Thereupon, for all investments that are chosen by a policyholder that are managed by an external asset manager, Baloise has implemented a due diligence policy in order to verify that these investments provide the disclosures to comply with the sustainability regulation.
At the moment, Baloise does not consider adverse impacts of investment decisions/insurance advice on sustainability factors regarding Article 4 SFDR.
When analysing potential impacts, we strive to link the consideration of the adverse impacts on sustainability factors to specific indicators in order to ensure a fully comprehensive and quantitative assessment. As Baloise's investment options are very complex and diverse, the amount of relevant data that is needed to develop these indicators are currently not available for all asset classes. We are constantly working to expand and improve the database and are thereupon in intensive dialogues with Baloise Asset Management and our third-party fund providers. We expect the first consideration of PAI’s and the disclosure thereupon to be conducted in the upcoming years.
Baloise has implemented a ‘Remuneration Policy’ which governs the processes concerning the remuneration of the members of the executive committee. This policy is aligned with the information of the internal guidelines and policies of the Baloise Group and BAM.
The remuneration policy is laid out to not only be competitive and achievement-oriented, but also to encourage executives to align their long-term focus with the interests of stakeholders, particularly the shareholders. To this end, the remuneration system provides for a significant portion of the variable remuneration to be awarded in shares that are restricted for three years and exposed to market risk during this period. Furthermore, the three most senior function levels receive performance share units, which means that a further component of their salaries is paid out as prospective entitlements. These performance share units must also be hold for three years before being converted into shares as a form of deferred remuneration. Both the proportion of variable remuneration in the total pay package and the proportion of remuneration awarded in restricted shares or as deferred remuneration increases in line with employees’ scope of strategic responsibility and influence.
Thereupon the remuneration policy is designed to promote sound and effective risk management and does not encourage risk-taking in relation to sustainability risks. To ensure that the integration of sustainability risk within the remuneration policy is given, the alignment of the remuneration policy with the regulatory standards of the SFDR is regularly reviewed.
In accordance with Article 12 SFDR Baloise must ensure that any information published in accordance with Article 3, 5 or 10 SFDR is kept up to date. If Baloise amends such information, a clear explanation of such amendment will be published here.
Our role as an insurer is to protect the people we care about and what belongs to them, but more broadly, it is to protect what is important and to promote the advancement of humankind. And it is from the standpoint of Corporate Social Responsibility (‘CSR’) that we can act!
Baloise is inspired by the United Nations’ sustainable development objectives when shaping its sustainability policy. Appropriate value creation processes have therefore been introduced for each of the objectives over which Baloise has the greatest influence: welfare, education, innovation, etc.
Our vision: to create value for all our stakeholders!
We want to provide the best possible environment for our staff by promoting diversity, personal development and well-being.
In January 2023 we moved to our new headquarters at Leudelange.
We have chosen an all-wood WELL-certified building in order to put the well-being of our staff at the heart of our efforts. As a ‘smart’ building, it will incorporate active and passive energy management solutions designed to optimise consumption and promote the comfort and safety of our staff.
- All our staff had laptops well before the COVID crisis and right from the very first lockdown measures we were able to organise for work to be done from home in optimal conditions.
- New ways of working: optidesk, flexdesk, training based on flexibility ... in order to work better and differently!
- Depending on the role, full or part-time work is now possible.
- Baloise electric cars are available for business travel.
- Bicycle parking to encourage sustainable commuting.
- Parking spaces reserved for car-sharing
- Using CO2 neutral products for our office supplies.
- Reducing and sorting our rubbish.
- Reducing our consumption of paper and digitising of our procedures.
- Introducing local products for our vending machines.
We take the training of our staff and our agents very seriously:
- Dedicated training courses: leadership, personal development, business skills …
- A culture of innovation thanks to the activities of our Ideas Lab
- Encouraging greater mobility
And we want them to feel as welcome as possible in the Baloise family:
- Health and well-being programmes (stress management, meditation, work-life balance, healthy eating, concierge service ...)
- Flu vaccination for all our staff
- Regular health check-ups
- Sports associations and other internal associations
- The possibility to purchase extra time off
- Reduced rates on our insurance products and other staff benefits
Baloise attaches importance to managing its business sustainably and retaining high performers. It also matters to Baloise that its remuneration is not only competitive and achievement-oriented, but also encourages managerial staff to align their long-term focus with the interests of stakeholders, particularly the shareholders. To this end, the remuneration system provides for a significant portion of the variable remuneration to be awarded in shares that are restricted for three years and exposed to market risk during this period. Furthermore, the most senior function levels receive performance share units, which means that a further component of their salaries is paid out as prospective entitlements; these PSUs must be held for three years before being converted into shares as a form of deferred remuneration. Both the proportion of variable remuneration in the total pay package and the proportion of remuneration awarded in restricted shares or as deferred remuneration increases in line with employees’ scope of strategic responsibility and influence.
We want to help our clients and stakeholders live a simpler and more stress-free life. All this thanks to clear communications, and to solutions and services which meet and exceed their requirements.
- By involving them in our business transformation through regular panels in order to understand their specific needs
- By consulting them as often as possible in order to offer continuous improvement!
- Streamlined and user-friendly client experiences
- Documentation which is transparent and clear
- Digitised processes for less paper: electronic signature, client portal ...
- Concerning alternative transport (bicycles and electric cars)
- Concerning responsible investment
- Concerning digital solutions
- Concerning our partnership with the mutual CMCM insurer
- Concerning the demystification of financial markets and life insurance in general.
- Robust compliance
- Regular audits
- Regular reviews of our key processes
- Continuously improved client documentation for maximum clarity and transparency
- A transparent and responsible approach to taxation.
Baloise is actively involved in the local fabric of the Grand Duchy through partnerships:
- Sports: sponsor for the Luxembourg Athletics Federation, for the Réiser Päerdsdeeg/CSI international equestrian jumping competition;
- Culture: by supporting the ‘Rockhal’, Luxembourg’s largest performance and concert hall;
- Concerning health and prevention:
- By supporting the Fondation contre le Cancer for more than 10 years
- By supporting the ALAN association which helps those affected by rare diseases
Baloise is also a partner of the University of Luxembourg and has set up privileged partnerships with various student associations.
- Objective: to facilitate exchanges in the fields of education and recruitment opportunities for students, provision of scholarships, etc.
Protection of the environment
- A new ecological headquarters and the choice of recyclable materials (supplies, furniture, etc.)
- The promotion of digitisation vs. paper: the ‘Zero Paper’ initiative
This Network - the members of which come from all our group companies - is managed by the Sustainable Development Team of the Baloise Group. It is committed to the development of sustainability so that it is a fully embedded part of our corporate strategy. It coordinates implementation in our business and business processes.
The Board of Directors plays an active role in overseeing and deciding on the implementation of our approach to sustainability.
It ensures that our responsible and sustainable decision-making is integrated with everything we do.
Local communities (e.g. HR, product management, etc.) are responsible for implementation at the operational level. The members of the sustainability network are the coordinating body in each of these communities.
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