Zurich increases climate solution investments by 6% to $8.7bn

Written by Adam Cadle

13/03/2023

Zurich increased its investment in climate solutions by 6% to US$8.7bn in 2022, and plans to invest 5% of its proprietary investment portfolio to impact investments by 2025.

In its 2022 annual report, Zurich said its increased investments in climate solutions provide green financing solutions under its impact investing strategy and also count as investments in green-certified buildings. Its green impact investing assets, for example, solar and wind farms, have helped avoid 3.2 million metric tons of CO2-equivalent emissions in 2022.

Since 2019, Zurich has achieved a reduction in the emission intensity of its portfolio of 12%. This reduction in financed emissions was mainly driven by disposals and changes to its portfolio as well as structural emission reductions of its investee companies. Zurich has observed a meaningful drop in emissions from companies in run-off under our coal and oil sands policy due to maturing assets and active portfolio management.

Zurich’s 2022 net investment income remained stable at US$5.1bn compared with the prior year. Realised capital gains and losses for the year resulted in a loss of US$951m, mainly from fixed-income and equity securities. This was partially offset by derivative and real estate revaluation gains. The net investment result for 2022 was US$4.1bn.

Zurich CIO Stephan van Vliet said: “In the difficult market conditions of 2022, the composition of our investment portfolio continued to demonstrate stability, retained a high-quality profile and continued to be well-diversified across regions and industries.”

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