Swiss Re AG

Last year, we further enhanced sustainability governance by formally integrating sustainability considerations into the Board of Directors' skill requirements. In 2023, we also refined our internal compensation-linked sustainability criteria to support the implementation of our Group Sustainability Strategy. [...] The Board of Directors (Board) and each of the Board committees as well as the Group Executive Committee (Group EC) and all Group EC members have explicit responsibilities related to sustainability. The Group Sustainability Council is responsible for the coordination and the alignment of sustainability-related activities at the Group level and for monitoring and advancing the progress of the GSS (see Sustainability governance, pages 21–26). [...] The Board is responsible for overseeing the development and implementation of the Group Sustainability Strategy including climate-related policies. It has assigned detailed sustainability-related responsibilities to the Board committees. [...] The GNSC regularly monitors initiatives related to the Group Sustainability Strategy. It oversees the Group's approach to sustainability matters and related principles, and how they are embedded at all levels of the Group. The GNSC keeps abreast of the Group Sustainability Council's activities and oversees the integration of governance and operational aspects of sustainability, including initiatives and actions specifically addressing climate change. [...] The Group EC approves sustainability policies. It also sets and monitors risk capacity limits, including for natural catastrophes, and determines product policy as well as underwriting and investment standards. In addition, the Group EC monitors performance in the area of sustainability. [...] The Group CRO chairs the Group Sustainability Council (GSC) and guides sustainability activities across the Group. He is responsible for developing and driving the Group Sustainability Strategy, and for the compilation of Swiss Re's Sustainability Report. As Group CRO, he is responsible for establishing the Group's risk management framework for all risk categories, including sustainability risks. [...] The GSC prepared and endorsed the Group Sustainability Strategy 2023–2025 roadmap and the respective measurement criteria. It also assessed Swiss Re's year-end sustainability performance. In addition, the GSC endorsed Swiss Re's carbon accounting and new mid-term carbon targets for selected single-risk portfolios in underwriting, as well as updates to the ESG Risk Framework, among others.

Our engagement and dialogue with all our stakeholders is based on trust, mutual respect and integrity and is governed by published governance guidelines such as Swiss Re's Code of Conduct. [...] Swiss Re engages in advocacy activities in the European Union. This includes stakeholders such as governments, national and supranational authorities. Our engagement is done either directly or through trade associations. Swiss Re is a member of several industry organisations and discloses relevant information regarding its activities and memberships in the EU transparency register. [...] Every PAC contribution Swiss Re makes is publicly disclosed in line with regulations and is in accordance with the company's governance on the matter.

## 9. Policy Approval and Oversight
The Manager oversees the implementation of SRILIAC's ESG Policy and ongoing reporting of related sustainability disclosures.

The ESG Policy has been approved and endorsed by the Chief Investment Officer of SRILIAC and the Board of Directors of SRILIAC, respectively, and is applicable as of the date first written above.

This ESG Policy is subject to change and is intended to be reviewed at least annually by SRILIAC Investment Committee and endorsed by the Board of Directors of SRLIAC. Further, this ESG Policy shall supersede and replace any prior policy and shall cover on a going forward basis, subject to the limitations discussed herein, existing and future investments.

The ESG Risk Framework consists of: - Three umbrella guidelines on the environment, social aspects and human rights, and governance, as well as specific policies on sensitive sectors or issues - The ESG Risk Process, comprising an ESG risk rating in a semi-automated assessment (ESG Risk Service), the ESG Referral Tool and an appeals process - Company exclusions - Sector exclusions in specific countries beyond mere compliance with international trade controls (ITCs) **Umbrella guidelines and sector-specific** **policies** Our ESG Risk Framework is based on the overarching principles of protecting the environment, respecting human rights and promoting good corporate governance, encapsulated in three umbrella guidelines that are valid for all our transactions. In addition, specific policies apply these overarching principles to seven sectors or issues in which we perceive major sustainability risks: the defence industry; oil and gas; mining; dams; agriculture, forestry and food; nuclear weapons proliferation; and thermal coal. We regularly review the guidelines and policies of our ESG Risk Framework to ensure they are in step with new risk developments and changing stakeholder expectations. In 2021, we introduced a revised and expanded Agriculture, Forestry and Food Policy, thus further strengthening our approach to managing nature- and biodiversity-related risks in our core business (see page 36). In 2021, we also introduced the Umbrella Guideline on Corporate Governance, which represents the "G" pillar of our ESG Risk Framework. The new umbrella guideline aligns our business conduct with the principles set forth in the UN Global Compact and focuses on issues related to corporate governance as well as corporate behaviour. However, it should be noted that the name change is only formal in nature, since our former Sustainable Business Risk Framework already covered business transactions involving human rights violations and environmental damage resulting from poor corporate governance and behaviour. [...] The ESG Risk Process We implement the framework's policies through a due diligence process consisting of three elements: the ESG Risk Service, the ESG Risk Referral Tool for potentially high-risk transactions and an appeals procedure. This process is firmly embedded in the Group's underwriting guidelines and processes. In the course of 2020, we fully embedded the ESG Risk Service in the underwriting processes for direct and facultative transactions. It gives our underwriters an indication of the ESG risk exposures of their transactions, provides them with clear guidance on what to assess in further detail and signals which highly sensitive transactions need to be to referred to our ESG Risk team. The data foundation of our ESG Risk Service is provided by an ESG risk watchlist of companies and projects that are flagged as high-risk to our business practitioners. Currently, the watchlist spans 2 358 sensitive companies and 300 projects. As 2021 was the first full reporting year in which the ESG Risk Service was integrated in most of our underwriting teams' tools and processes, we witnessed a significant increase in the number of ESG risk assessments to approximately 92 000. At the same time, the number of ESG risk referrals remained comparatively stable, which indicates that the identification of high-risk transactions was already effective before the ESG Risk Service was fully integrated. The transactions identified as potentially high-risk are transferred through the ESG Risk Referral Tool to our in-house team of ESG risk experts, who analyse them in detail and issue binding recommendations: to go ahead, to go ahead with certain conditions attached or to abstain. In the event of disagreements, these recommendations can be appealed and escalated. The number of ESG risk referrals declined from 258 to 185 in 2021. In total, we issued negative recommendations in 18 cases and positive recommendations with conditions in 38 cases (see graph on the right). Two recommendations were escalated through the appeals process. The decline in referrals was caused by a more rigorous update process in the data underlying the ESG Risk Service and a clear distinction between low and medium/high-risk industries. **Training** We offer our employees regular in-house training on the ESG Risk Framework. It is compulsory for all our employees who work in underwriting and with our clients as well as for all our new staff. In 2021, a total of approximately 2 100 employees completed the mandatory training. **Client and industry interaction** Over the year, we had approximately 80 external engagements on sustainability risks with clients, brokers, investors, industry peers and civil society groups such as environmental and humanitarian NGOs. We held meetings with clients operating in sensitive sectors such as agriculture, forestry and mining to discuss potential measures they could take to address their ESG risks. In partnership with other re/insurers, we promote industry initiatives aimed at strengthening ESG risk management in underwriting portfolios. One example of such a collaboration is our engagement in [the CRO Forum. In 2021, we contributed to](https://www.thecroforum.org/) [the publication "Mind the Sustainability Gap",](https://www.thecroforum.org/2021/11/03/mind-the-sustainability-gap-integration-sustainability-into-insurance-risk-management/) which has attracted considerable attention since its launch. It provides guidance on how to integrate sustainability considerations into re/insurance risk management and presents Swiss Re's ESG Risk Framework as a best-practice case study.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Our role as a risk knowledge company and ultimate risk-taker in society means that we have an intrinsic interest in pursuing productive dialogues with our stakeholders, which includes policy makers. Drawing on the expertise from our core business, we identify key risks and take an active role in discussions about them. We share, exchange and co-create knowledge through many channels, eg our publications, international dialogue platforms, and client and partner events, as well as cooperation with governments, NGOs and academic institutions. Swiss Re Institute plays a key role in our dialogue with stakeholders. Our focused efforts generate valuable feedback and new insights for risk management and product development, sharpening our understanding of key perils and sustainability issues. Mitigating climate risk and advancing the energy transition is one of our three 2030 Sustainability Ambitions of our Group Sustainability Strategy provide an important focal point for these efforts.

As a founding member of the UN-convened Net-Zero Asset Owner Alliance (AOA), Swiss Re was represented by our Group Chief Investment Officer in the inaugural Alliance's Steering Group. Additionally, we co-led the development of the AOA's first Target Setting Protocol, which was released in 2021 and supports the setting of targets to be achieved by 2025. In 2021, we launched the publication "Responsible Investments – Our roadmap to net zero†, to illustrate how we address climate change in our investment process, and outline the key lessons learned. and challenges faced. By sharing insights from our journey of reducing GHG emissions and financing the transition to a low-carbon economy, we want to help strengthen the collaboration needed to achieve a 1.5°C world. Swiss Re has actively promoted the transition to net-zero emissions by participating in several COP26 side events, such as a panel on Driving Net Zero Finance Integrity, hosted by the Climate Policy Initiative, UNEP FI and the 2° Investing Initiative. This complemented our other activities throughout the year, which included speaking on several panels. As part of relevant industry organisations such as the Swiss Insurance Association and Swiss Sustainable Finance, we advise on sustainable financial market developments in Switzerland. We first formalised our commitment to responsible investing in 2007 by signing the Principles for Responsible Investment (PRI).

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Our role as a risk knowledge company and ultimate risk-taker in society means that we have an intrinsic interest in pursuing productive dialogues with our stakeholders, which includes policy makers. Drawing on the expertise from our core business, we identify key risks and take an active role in discussions about them. We share, exchange and co-create knowledge through many channels, e.g. our publications, international dialogue platforms, and client and partner events, as well as cooperation with governments, NGOs and academic institutions. Swiss Re Institute plays a key role in our dialogue with stakeholders. Our focused efforts generate valuable feedback and new insights for risk management and product development, sharpening our understanding of key perils and sustainability issues.