Governance
Making responsible and sustainable decisions is part of our daily business.
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 the ultimate responsibility for the Group’s success, for delivering longterm sustainable value. It sets our values and standards, and establishes a framework of effective controls. As part of its strategic responsibility, the Board approves our sustainability strategy and objectives, including non-financial targets with a material impact on 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 exercises oversight on sustainability-related matters.
- The Audit Committee exercises oversight on sustainability reporting.
- The The Risk and Investment Committee exercises 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 strategy’s execution.
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 non-financial targets with 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
- review the Group’s forward-looking plans (incl. transition plan) with regard to sustainability topics; and monitor legislative and regulatory developments and reporting requirements relating to sustainability.
Governance, Nominations and Sustainability Committee
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.
Strategy development and its implementation is facilitated by the Sustainability Executive Team (SET). The SET comprises sustainability heads of relevant functions and countries and is chaired by the Gorup CSO. Regions and countries are operationally responsible for implementing the sustainability strategy developed at Group level.
