Línea Directa signs up to the united nations´ principles for sustainable insurance
- Línea Directa Aseguradora has adopted the four Principles for Sustainable Insurance (PSI) promoted by the global financial sector's partnership with the United Nations environment programme, which set out specific actions for the management of environmental, social and governance (ESG) risks and opportunities.
- This initiative, to which 150 insurance companies around the world have signed up, aims to promote innovative insurance and risk management solutions that help achieve sustainable, inclusive and resilient economic and social development.
- In line with its sustainability strategy, Línea Directa is committed to incorporating ESG criteria into its insurance activity and to collaborating with customers, business partners, authorities and other stakeholders on issues related to this area.
- The Group's adoption of these Principles is in addition to its adherence to the UN Global Compact and the TCFD's recommendations on climate risks, among other significant ESG initiatives.
Madrid, 13 April 2023. Línea Directa Aseguradora has signed up to the United Nation's Principles for Sustainability in Insurance (PSI), which establish a framework for the sector in the endeavour to respond to environmental, social and governance risks and opportunities. The company thus joins the largest joint initiative between the UN and the global insurance industry to promote innovative insurance solutions that contribute to sustainable economic and social development.
These Principles were agreed in 2012 by the United Nations Environment Programme Finance Initiative (UNEP FI), a partnership between the international organisation and the global financial sector to scale up private finance to support the creation of a green economy. This alliance is also the driving force behind the Principles for Responsible Investment (2006) and the Principles for Responsible Banking (2019).
Línea Directa has now joined the almost 150 insurers around the world, and is among the few Spanish insurers that have adopted these Principles, which together account for 33% of global premium income and have assets worth 15 billion dollars.
As a manager and risk taker and as an investor, the insurance sector plays a key role in areas such as climate change and its consequences, social inclusion, demographic changes and health. The four Principles for Sustainability in Insurance envisage specific actions for the construction of a resilient, inclusive and sustainable economy and society.
The first entails the incorporation of environmental, social and governance (ESG) criteria into the strategy of companies and all insurance activity : risk management and underwriting, product and service development, and claims and investment management. The second relates to raising awareness of ESG issues among clients and business partners, and the third to working with governments, regulators and other stakeholders to promote wide-ranging action on ESG. Finally, through the fourth Principle, the signatory companies undertake to publicly and periodically disclose their progress in applying these Principles.
Global commitments to sustainability
Línea Directa has been incorporating sustainability into its operations for over a decade. Accordingly, with regard to the environment, in addition to encouraging the efficient management of resources and having a roadmap for decarbonisation, it is already fostering the development of products to promote sustainable mobility, for example, through the Respira Policy for electric vehicles and plug-in hybrids; to improve the habitability and energy efficiency of homes, and to improve the health and wellbeing of its employees and customers, in this case through its health insurance brand, Vivaz.
In addition, with regard to governance, the Group promotes responsible and accessible marketing, manages the supply chain according to environmental, social and governance criteria and its investment strategy is aligned with ESG best practices.
Global commitments to sustainability
The group's involvement with this and other key initiatives in this area forms part of the actions envisaged by Línea Directa in its 2023-2025 Sustainability Plan, which is fully integrated into the corporate strategy and aims to achieve sustainable growth based on environmental, social and good governance criteria.
The company signed up in 2021 to the United Nations Global Compact, adopting the UN's universal principles related to human rights, labour, the environment and anti-corruption, which the company has been integrating into its strategy and operations and promoting in its areas of activity and influence for many years. At the beginning of last year, it also signed up to the UN Women's Women's Empowerment Principles , thus strengthening its commitment to the promotion of gender equality and the empowerment of women in the workplace, the market and society.
In 2022, the group also adopted the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), a working group created by the G20 Financial Stability Board to encourage companies to inform investors about the risks and opportunities that climate change involves for the company, how the company manages them and the progress they are making in this area.
According to Mar Garre, Director of People, Communication and Sustainability: “Línea Directa Aseguradora has been incorporating sustainability into its strategy, operations and culture in a structured and formal manner for over a decade. Our adherence to the Principles for Sustainability in Insurance and other key initiatives in this area is, therefore, a further step in our commitment to applying environmental, social and governance criteria across all the Group's activity, with the ultimate goal of generating value for both the company and all of our stakeholders".