Swiss Re has reinforced its long-term climate ambition by committing to achieve net-zero greenhouse gas emissions across its entire business by 2050, aligning with Swiss regulatory requirements and global climate goals.
Swiss Re’s Sustainability Report and Climate Transition Plan indicates that the central pillar of strategy is the company’s progress in reducing operational emissions. Swiss Re has achieved more than 90 percent reduction in Scope 1 and market-based Scope 2 emissions between 2003 and 2025, demonstrating sustained efforts to decarbonise its direct operations.
More than 90 percent of operational emissions are now covered by interim reduction targets, while the continued use of 100 percent renewable electricity reinforces its commitment to clean energy adoption. These achievements are driven by the CO2NetZero Programme, launched in 2021, which focuses on rapidly cutting emissions while addressing residual emissions through carbon removal strategies.
The programme is guided by a dual approach that prioritises immediate emissions reduction across operations while progressively increasing reliance on carbon removal solutions. A key instrument supporting this transition is the Carbon Steering Levy, which introduces an internal price on carbon emissions. This mechanism not only incentivises emission reductions across business units but also generates funding for carbon offset and removal initiatives.
Swiss Re plans to scale the share of carbon removal certificates from 0 percent in 2020 to 100 percent by 2030, with an interim milestone of 50 percent in 2025, reflecting a structured pathway toward long-term decarbonisation.
Despite these advances, the company acknowledges that the majority of its emissions footprint lies beyond its direct operations. Scope 3 emissions, particularly those associated with purchased goods and services, represent the largest share of total emissions.
Business air travel remains the second-largest contributor within operational Scope 3 emissions, highlighting ongoing challenges in reducing indirect environmental impact. To address this, Swiss Re is actively reducing travel-related emissions, promoting sustainable procurement practices, and engaging employees through initiatives such as NetZeroYou to encourage individual action on carbon footprint reduction.
The report also highlights emerging sustainability-linked risks that are reshaping the insurance landscape. Data centre-related risks, driven by increasing reliance on digital infrastructure and energy-intensive operations, could result in losses of up to $10 billion from a single event. At the same time, demand for insurance solutions linked to climate resilience and infrastructure protection is expected to grow significantly, with premiums projected to more than double by 2030. These developments illustrate how sustainability is not only a risk factor but also a driver of new business opportunities.
Swiss Re’s sustainability strategy is closely tied to the escalating financial impact of climate change. The report estimates global insured losses from natural catastrophes at $107 billion in 2025, while total losses from climate-related disasters could reach $145 billion, placing the year among the most expensive on record.
Swiss Re is accelerating its transition away from high-carbon activities by setting clear timelines and restrictions across both its underwriting and investment portfolios. The company plans to fully phase out thermal coal-related re/insurance business in OECD countries by 2030 and globally by 2040. In the interim, it has imposed strict limits, including single-risk coverage for companies with more than 30 percent exposure to thermal coal and for projects involving new coal mining or power capacity of at least 100 MW, with broader application across business lines from mid-2026.
On the investment side, Swiss Re has embedded fossil fuel guidelines into its asset management approach. It aims to completely exit thermal coal mining and coal-fired power generation in its listed equity and corporate bond portfolios by 2030. The company has also stopped new direct investments in firms generating at least 5 percent of revenues from thermal coal, while applying additional maturity-based rules for corporate bonds.
Beyond coal, Swiss Re is tightening controls on oil and gas exposure. It excludes investments in the most carbon-intensive producers and, since 2025, avoids companies that derive the majority of their revenues from oil and gas activities unless they demonstrate alignment with net-zero pathways. These measures reflect a broader strategy to reduce climate risk and align its business with global decarbonisation goals.
Overall, Swiss Re’s 2025 disclosures underline how sustainability is becoming deeply embedded in the core of the insurance business. By combining strong emissions reduction progress with forward-looking risk assessment and financial resilience, the company is positioning itself to navigate a rapidly evolving climate landscape while advancing its net-zero ambitions.
BABURAJAN KIZHAKEDATH