Compensa Life Vienna Insurance Group SE, LEI 549300B2IA6I1Y8Q4C17, considers the main negative impact of its investment decisions on sustainability factors. This statement summarizes the declaration of the main negative impact on sustainability factors by Compensa Life.
Compensa Life not only implements a risk mitigation strategy but also takes responsibility for the impact of its investments on sustainability factors. To reduce the negative impact on sustainability factors, Compensa Life employs a range of measures, including avoiding investments in thermal coal and controversial or banned weapons.
In existing buildings, including investment real estate (which is typically managed by real estate funds), measures are implemented to reduce the amount of carbon dioxide entering the environment related to buildings.
Investment decisions can have a negative impact on sustainability factors, contribute to them, or be associated with them (negative impact on sustainability). The main negative impact comes from investment decisions that adversely affect sustainability factors. Sustainability factors are issues related to environmental protection, social responsibility, employee rights, human rights protection, and the fight against corruption and bribery. Sustainability factors are also referred to as ESG criteria.
When calculating the main negative impact, the entire investment portfolio of Compensa Life is taken into account, including investment funds designed to cover investment life insurance. The strategies described here are part of the investment process for the insurance premiums managed by the Compensa Life Investment Committee.
Regarding investment life insurance, the insurance client has the option to choose from a wide range of funds managed by the corresponding investment company, essentially following its ESG strategy, depending on their risk appetite and which sustainability aspects they prioritize.
To calculate the negative impact, Compensa Life collects data (especially about the securities sector) according to MSCI ESG ratings. Data on issuers and asset classes that do not have an MSCI ESG rating is obtained directly from the issuer. In terms of indicators applicable to real estate investments, whether an asset uses energy inefficiently (18 PNP) and whether fossil fuels are used in the operation of the asset (17 PNP) are determined by the characteristics of individual assets.
It is important to note that the calculation of corporate indicators is based on legal requirements applicable to all sectors. In addition to coal and oil industries, sectors such as the irreplaceable steel, cement, glass, and aluminium industries also exhibit high GHG emissions. By excluding issuers from all these sectors, it is possible to easily reduce the carbon dioxide levels associated with investment portfolios. Therefore, calculating all indicators without further analysis can lead to incorrect conclusions. Compensa Life is gradually reducing its investments in coal used for heat generation.
This statement regarding the main negative impact of investment decisions on sustainability factors covers the period from January 1, 2023, to December 31, 2023.
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