PZU Życie SA considers the material adverse sustainability impacts of its investment decisions.
This statement is a consolidated statement on the material adverse sustainability impacts resulting from PZU Życie SA’s activities and covers the reference period from 1 January 2022 to 31 December 2022.
In its insurance operations, PZU Życie SA offers insurance-based investment products. These comprise endowment insurance and unit-linked life insurance products with a diversified asset structure.
The due diligence strategy in respect of the impacts takes into account the types of investment products offered by PZU Życie SA.
PZU Życie SA takes investment decisions in respect of investing funds to cover insurance liabilities arising from endowment insurance. These funds are invested in debt securities issued, backed or guaranteed by the State Treasury of the Republic of Poland.
PZU Życie SA considers the material adverse sustainability impacts of its investment decisions, except that the investment decisions are taken within the framework of an investment strategy which envisages investment in debt securities issued, backed or guaranteed by the State Treasury of the Republic of Poland.
Unit-Linked Life Insurance
Unit-linked insurance funds are invested in financial instruments issued by corporate issuers (e.g. equities or corporate bonds) or by sovereigns (countries) and international organizations (e.g. treasury bonds), or else in participation units and titles of collective investment undertakings.
As regards unit-linked life insurance whereby funds are invested in participation units or titles of dedicated collective investment undertakings, PZU Życie SA takes into account whether a given investment fund pursues a sustainable investments policy or promotes environmental or social aspects. Furthermore PZU Życie SA considers if the investment fund management company managing the fund takes into account the material sustainability impacts of their investment decisions and whether its discloses their scope in compliance with the Delegated Regulation.5 Being guided by the wording of the contracts of insurance as well as the policyholder’s and the insured’s interests, PZU Życie SA considers the above mentioned information when taking decisions on the selection of the investment funds in whose participation units the assets made available under the unit-linked life insurance agreement will be invested, including other criteria of investment fund evaluation.
PZU Życie SA outsourced to TFI PZU SA the management of unit-linked life insurance funds whose assets are invested in equities or bonds, or else into the participation units or titles of various investment funds (the so-called model funds). Being guided by the wording of the contracts of insurance, the policyholder’s and the insured’s interests, as well as considering the products’ investment objectives, rules of asset investment diversification and other investment restrictions, the investment selection criteria and the adopted benchmarks and reference rates arising from the law, PZU Życie SA committed TFI PZU SA that when managing the portfolios of these unit-linked funds the company take into account the material adverse sustainability impacts only when it does not negatively impact the expected rate of return on the product as well as the relation of the expected profit to the value of risk, except that the possibility to take into account the material adverse sustainability impacts of investment decisions is limited or excluded in respect of products with defined investment policy.
In the contract of insurance concluded with the unit-linked fund, the policyholder selects the unit-linked funds in which they wish to invest the funds from their insurance premium.
Furthermore, PZU Życie SA publishes the material adverse sustainability impacts in quantitative terms, so that the information is based on Annex I of the Delegated Regulation. This information is published below.
PZU Życie SA notes that the companies in which the funds have been invested are not required to prepare and publish data on the indicators of adverse sustainability impacts. Some of these companies publish such information on a voluntary basis. For some indicators, more companies in which the assets have been invested publish such data, whereas for other indicators there are very few companies that publish such data. PZU Życie SA has not performed any data estimates in respect of the indicators for the companies that do not publish the data, because such estimates would not be reliable and could be misleading for customers. In section “Description of the strategy of identification and hierarchy ranking of the material adverse sustainability impacts”, point (e) “data sources used” in the table, the “Data Coverage” column indicates what percentage of the investment portfolio is made up of companies that have published a particular index. Customers should be aware that for some indicators this percentage is very low, which means that the data published does not reliably reflect the material adverse sustainability impacts of PZU Życie SA’s operations.
Statement on the material adverse sustainability impacts of investment decisions of PZU Życie SA.pdf