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What does ESG mean for SCOR?
SCOR publishes its very first ESG Report on investments, in compliance with Article 173 of the French law on energy transition for green growth. What does ESG mean for us exactly?
In its 2016–19 strategic plan ‘Vision in Action’, the SCOR group reaffirms its commitment to applying ESG - Environmental, Social and Governance - criteria in the management of its financial assets. In its aim to invest responsibly, SCOR adopts an approach that is more pragmatic than dogmatic.
The goal is to first construct a consistent, proactive approach based on the Group’s core competencies, then to gradually expand analysis to more innovative and ambitious topics. Criteria were given priority on the basis of the Group’s core business and fundamental values. Approved by SCOR’s Executive Committee and Board of Directors, the strategic plan defines clear principles and measurable objectives that the Group can report on regularly and transparently.
Risk management, which is the core of the Group’s business, is designed to be holistic and to cover various factors through a global approach. Over many years, SCOR has developed a transversal corporate culture of risk management under the ERM (Enterprise Risk Management, see glossary) concept. Environmental, social and governance risks fall naturally into this approach.
The SCOR group’s ESG approach is based on carefully selected themes, including risk management – the foundation of the Group’s business – but also the impact of targeted investments in ‘green’ sectors, the coverage of natural catastrophes, and both life and knowledge sciences. SCOR applies a policy of excluding certain sectors and companies on the basis of quantitative and qualitative criteria.
In order to fully assume its fiduciary responsibilities, the Group has chosen an approach that is both proactive and adaptable. In 2016, more than 80% of SCOR’s portfolio was rated in accordance with ESG criteria. The green portion of the investment portfolio now totals EUR 1.3 billion, including operational real estate. Through targeted investments, SCOR applies a consistent approach that combines risk analysis, exclusion and impact.