QBE seeks to responsibly invest our proprietary assets, including our premium income, across the globe. Our assets are managed by a mix of in-house portfolio managers and analysts, and external fund managers.
As an international, multi-asset, multi-currency investor and signatory to the Principles for Responsible Investment (PRI), we factor ESG considerations into our investment decision-making processes to seek to manage risk, improve long-term, risk-adjusted financial returns, and align our approach with stakeholder expectations.
Our Group Investments team is responsible for integrating ESG considerations into our investment decision-making process.
The Head of Business Operations & Investments Sustainability reports to the Group Chief Investment Officer (GCIO) and participates in several sustainability-related committees.
Building trust with our stakeholders and transparency in all our dealings is important to us. We do this through public reporting, including the Principles for Responsible Investments Public Transparency Report, Modern Slavery and Human Trafficking Statement, our climate-related financial disclosures prepared in accordance with the requirements of the Australian Sustainability Reporting Standard AASB S2 Climate-related Disclosures and our annual sustainability reporting.
Our Responsible Investments approach is captured across the four pillars outlined below, and is underpinned by our Investment Philosophy Framework, the Impact and Responsible Investments Standard, QBE’s Environmental and Social (E&S) Risk Framework, and other relevant policies which inform the ESG factors in our investment decision-making processes and systems.
Screening
Our E&S Risk Framework promotes informed decision-making consistent with QBE’s commitment to responsible investment. Our E&S Risk Framework outlines our approach to exclusions, to address key E&S risks across our investment activities. All direct investments are subject to the E&S Risk Framework.
ESG Integration
We consider ESG integration approaches across all asset classes through the inclusion of material ESG factors into investment analysis and decision-making. This is a collaborative process across our entire Group Investments team.
All issuers must be consistent with relevant criteria set out in our E&S Risk Framework, Group Sanctions Policy, and Group Human Rights Policy. We integrate ESG into the credit analysis process through our internal, proprietary credit assessment framework that identifies suitability and eligibility for our portfolio. Screening for ESG performance includes a quantitative assessment using independent ESG ratings.
We also invest across multiple asset classes utilising external fund managers and are committed to ensuring they are aligned with QBE’s Responsible Investments approach. ESG considerations form an integral part of our manager selection, appointment, and monitoring processes. We conduct an annual ESG review of our existing managers, with additional engagement activities if material issues arise.
Stewardship
We believe that ESG considerations are a critical component of our responsibility as an asset owner, to seek to ensure sustainable financial outcomes.
Our objective is to gain insight into investees’ approach to manage material ESG issues. This allows us to understand our exposure to ESG risks and opportunities and gives us the ability to influence real world outcomes.
Impact Investing
Impact investments seeks to generate appropriate risk-adjusted returns along with a positive, measureable, social and/or environmental benefits, subject to the same return and risk appetite standards applied across the broader investment portfolio.
Premiums4Good is an initiative started by QBE in 2016 where we allocate a portion of our customer premiums to impact investments that aim to create positive environmental and/or social change, alongside a financial return. Premiums4Good supports our belief that we can deliver attractive risk-adjusted returns and business value, while also seeking to deliver positive social and environmental impact. For more information on Premiums4Good, visit our website: Premiums4Good | QBE Group