Swiss Re’s approach to Exclusion is based on our Group-wide Sustainable Business Risk Framework. This advanced risk management tool sets company-wide criteria for what we consider as acceptable business and which may thus lead to the exclusion of a company or a country from our investment scope. Swiss Re’s Sustainability Risk Management team is responsible for reviewing and updating the framework on a regular basis. Further information is available in this report under Our Sustainable Business Risk Framework. Additionally, we consider the way companies conduct their business by screening their alignment with the ten principles of the UN Global Compact.
To mitigate the risk of stranded assets in the light of the accelerating transition to a net-zero GHG economy, we avoid investments in companies that generate 30% or more of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation. We have also divested from companies with more than 20% revenues from oil sands operations. Further strengthening our efforts, we introduced an absolute coal threshold in 2019: We are committed to not investing in mining companies that produce at least 20 million tonnes of coal per year and in power utility generators with more than 10 gigawatts of installed coal fire capacity.
For further information on how we manage climate risk in our investment portfolio, please read our Climate-related financial disclosures published in the 2019 Financial Report.