Swiss Re has committed to new measures across its asset management, underwriting and operations to help transition to a net-zero greenhouse gas emission economy.

Group CEO Christian Mumenthaler says climate change “remains the biggest challenge we face as a society” and requires “immediate attention”.

"We are moving ahead in all areas of our business to accelerate the transition towards net zero,” he said.

The reinsurer outlines concrete targets to transition its investment portfolio to net-zero greenhouse gas emissions by 2050, including a carbon intensity-reduction target of 35% by 2025 for its portfolio of corporate bonds and equities.

It plans to exit coal-based assets for the portfolio by 2030 and increase investments in renewable and social infrastructure by $US750 million ($968.45 million), and expand its green, social and sustainability bond exposure to $US4 billion ($5.17 billion) by the end of 2024, from $US2.6 billion ($3.36 billion) last year.

Swiss Re, which will report on progress towards its targets each year, already cut carbon intensities in its corporate bond and listed equity portfolio by around 30% in the three years to 2018. It has pledged to take “an active dialogue” with companies in its portfolio to encourage them to limit global warming to 1.5°C.

“As asset owners we can play a meaningful role, and I’m pleased to see momentum building amongst the investor community,” Swiss Re’s Group Chief Investment Officer Guido Fürer said, adding the measures would also "improve our risk-adjusted returns”.

Swiss Re is introducing new thermal coal exposure thresholds for treaty re/insurance across its property, engineering, casualty, credit & surety and marine cargo lines of business, with a complete phase out of thermal coal exposure in OECD countries by 2030 and in the rest of the world by 2040.

This year, Swiss Re also started withdrawing insurance support gradually from the most carbon-intensive oil and gas production.

Swiss Re acquires all power for its operations from renewable sources and has set itself a 30% reduction target for flight emissions for 2021 versus 2018 levels.

It has introduced a triple-digit internal carbon levy of $US100 ($129) per tonne of carbon dioxide - the first multinational company to announce a triple-digit real carbon levy on both direct and indirect operational emissions, such as business travel.

The levy will gradually increase and be doubled by 2030, and provides a 10-year funding scheme to move from carbon offsetting to supporting carbon removal projects.

Swiss Re participated in the world’s first auction for negative emission certificates in 2019, and last year signed a collaboration agreement with direct carbon air capture company Climeworks.