Governance

Sustainability is embedded in our governance

Our governance structure supports a stakeholder-inclusive approach. Embedding sustainability throughout our business will enable us to maximize our impact. We treat sustainability as an integral part of our governing system. The Board of Zurich Insurance Group Ltd has ultimate responsibility for the success of the Group and for delivering sustainable value within a framework of prudent and effective controls. It sets the Group’s values and standards to meet the expectations of our stakeholders. As part of its strategic responsibility, the Board approves the Group’s sustainability strategy and objectives, including related targets that have a material impact on the company or the Group.

It is supported by its Board Committees within their respective core mandates:

• The Governance, Nominations and Sustainability Committee (GNSC) recommends the Group’s sustainability strategy and objectives and also exercises oversight on sustainability-related matters.
• The Audit Committee provides oversight on the integrated sustainability disclosure (ISD).
• The Risk and Investment Committee provides oversight of risks (including sustainability risks).
• The Remuneration Committee evaluates the Group’s remuneration architecture, including incentive plans, which are linked to appropriate performance criteria supporting the execution of the strategy of the Group.

Governance, Nominations and Sustainability Committee

The GNSC supports the Board in fulfilling its duty to establish best practices in corporate governance across the Group, to establish and maintain a process for appointing new Board and Executive Committee (ExCo) members and to oversee the Group’s approach and conduct with regard to sustainability.

In the area of sustainability, the GNSC's responsibilities and authorities are to:

• review and propose to the Board for approval the Group’s sustainability strategy and objectives, including related targets having a material impact on Zurich Insurance Group Ltd or the Group;
• oversee the Group’s approach and conduct with regard to sustainability, assessing progress against agreed actions at least annually; and
• monitor legislative and regulatory developments and reporting requirements relating to sustainability.

Management oversight

At management level, accountability for different areas of expertise, including sustainability aspects related to each of these areas, is assigned to an ExCo member or a Group CEO direct report. In addition, the Chief Sustainability Officer (CSO) drives the strategic sustainability approach of the Group and acts as a sounding board for the strategic alignment of global sustainability priorities to assure a consistent approach and to facilitate oversight. The CSO is also responsible for monitoring progress with respect to the sustainability priorities and targets, and reporting thereon to the Board’s GNSC, the Group CEO and the ExCo.

By opting for an integrated approach, our existing governance bodies are responsible for sustainability-related topics that concern their field of expertise.

The implementation of the sustainability strategy and objectives in the businesses, functions, regions and countries is facilitated by the Sustainability Executive Team (SET). The SET comprises senior executives from across the Group and is chaired by CSO.