Sustainability-related disclosures
As a participant on the financial market within the meaning of Regulation (EU) 2019/2088 on sustainability-related disclosure requirements in the financial services sector (the so-called Disclosure or Transparency Regulation or SFDR), PrismaLife AG is obliged to disclose certain sustainability-related information at the corporate and product levels.
The status of the following information is June 30th 2023.
1. Inclusion of sustainability risks in investment decision-making processes
The consideration of sustainability risks in the investment decision-making process plays an important role at PrismaLife AG. Sustainability risks are understood to be events or conditions from the environmental, social and corporate governance areas, the occurrence of which could actually or potentially have a significant negative impact on the net assets, financial position or results of operations as well as on the reputation of the company.
1.1 Investment process and ESG integration
PrismaLife AG consistently pursues a two-stage investment process in its covered asset pool, which includes return, liquidity and risk parameters as wellas ESG objectives.
When selecting suitable investments, PrismaLife AG first evaluates classic key figures such as yield, duration and creditworthiness of the issuers. In a second step, PrismaLife AG measures the suitable investments according to these key figures against ESG criteria. Exclusion criteria apply to all new investments, in which a distinction is made between companies and sovereigns as issuers. In addition, the investments of the covered asset pool should achieve an above-average MSCI ESG score overall. New investments purchased in the course of a financial year should not worsen the ESG score of the portfolio at the end of the year. In addition, the level of CO2 emissions of the portfolio is measured. New investments purchased in the course of a financial year should not worsen the portfolio’s CO2 footprint per million euros invested at the end of the year.
Existing investments are regularly monitored according to the same ESG criteria. In the event of a severe breach of the defined exclusion criteria, it will be examined whether PrismaLife AG can reduce the position.
All exclusion criteria per asset class are listed below.
Asset class |
Exclusion criteria |
| Equities and corporate bonds | Production of or trade in outlawed weapons (cluster bombs, landmines, etc.) as well as nuclear weapons |
| Production of biocides (chemicals classified by the WHO as extremely hazardous) | |
| In the treatment of workers violation of principles considered fundamental by the ILO: Restriction of freedom of association and the right of collective bargaining, forced labour, child labour, discrimination and systematic circumvention of minimum labour standards | |
| Violation of human rights beyond employment relationships, e.g. acceptance of danger to customers, human trafficking, use of violence, violation of self-determination rights | |
| Violation of one or more of the ten principles of the UN Global Compact | |
| Government bonds | Authoritarian regimes or unfree countries according to the classification of Freedom House |
| Legal discrimination against social groups, e.g. women, people with disabilities, minorities | |
| Widespread use of child labour | |
| Violation of human rights, e.g. political arbitrariness, torture, restriction of freedom of movement and religion | |
| Massive restriction of press and media freedom | |
| Practicing the death penalty* | |
| Raw materials | Exclusion of raw materials from the agricultural sector |
*PrismaLife AG reserves the right to make investments in US Treasuries up to a maximum of 3% of the investment volume for portfolio management purposes.
1.2 Fund selection for unit-linked life insurance policies
In the available selection of funds, the policyholder selects a suitable capital investment from one or more of the investment funds offered in accordance with his risk preference. The aim is therefore to provide the broadest possible fund universe with which a customer can map his or her individual preferences in terms of investment class, investment focus, risk propensity and sustainability preferences. PrismaLife AG supports the topic of sustainability in the available selection of funds by systematically expanding the range of sustainably oriented funds. As far as possible, sustainable investment options should be offered in every asset class. The percentage of ESG funds in the selectable fund universe is to exceed 50% by 2023. PrismaLife AG uses a Morningstar assessment to classify a fund as “sustainable”, which is also available to customers via the Morningstar Quickrank on the homepage in the fund information section.
2. Consideration of adverse sustainability impacts
PrismaLife AG, as a long-term oriented life insurer, takes into account environmental, social and responsible corporate governance principles when selecting assets for its investments. The explanation of the main adverse effects on the sustainability factors of PrismaLife AG can be found in the following document.
PAI Statement (PDF, German Version with English Summary)
3. Inclusion of sustainability risks in the remuneration policy
According to Article 5 SFDR, financial participants must publish information on the extent to which their remuneration policy is consistent with the inclusion of sustainability risks.
The remuneration system of PrismaLife AG complies in all its components (fixed and variable remuneration, employee benefits, company social benefits) with the requirements of stock corporation law and also with the requirements of insurance supervision law.
The remuneration guidelines of PrismaLife AG are based on a performance-related fixed remuneration system that rewards all genders equally. A central assessment criterion for professional development is PrismaLife AG’s Code of Conduct and Integrity “together, consciously and with spirit”. PrismaLife AG does not pay any revenue-related remuneration to employees; individual variable remuneration is only paid in special exceptional cases on the basis of qualitative criteria. The variable remuneration of the Executive Board, which is based on quantitative criteria, is not linked to the achievement of explicit ESG targets.
The remuneration policy with sales partners is designed in such a way that the client’s interest is taken into account and advice is provided according to need. No differences are made in the remuneration for the brokerage of funds with or without sustainability criteria.
1. Sustainability-related disclosure on the security and special assets of PrismaLife AG
1.1 Summary
PrismaLife’s “Sicherungs- and Sondervermögen” are managed in a joint portfolio, the so-called covered asset pool. Environmental and social characteristics are promoted, but no sustainable investments will be made. The considered environmental and social characteristics include sector and value-based exclusions, a comprehensive assessment of ESG factors and the CO2 footprint of the investments.
As a sustainable pension specialist, PrismaLife AG consistently pursues a two-stage investment process that includes return, liquidity and risk parameters as well as ESG objectives. In the first stage, the financial market-oriented analysis is carried out according to asset classes, sectors, yields and maturities as well as classic rating parameters. In the second stage, potential investment products are screened against ESG criteria and prioritised if necessary. The investment decision is then made according to the better ESG score in each case and the lowest possible CO2 footprint, as well as considering the defined exclusion criteria. Data from a renowned external data provider specialising in sustainability analysis is used to evaluate the investment options (currently MSCI ESG Research). Existing investments are regularly monitored according to the same ESG criteria. In the event of severe violations or controversies, it is examined whether the position can be reduced.
1.2 No sustainable investment objective
This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.
1.3 Environmental or social characteristics of the financial product
The environmental and social characteristics of this financial product include the following:
- Sector and value-based exclusions: Exclusion criteria are applied to investments. A distinction is made between criteria for companies and sovereigns.
- ESG assessment: PrismaLife AG uses the service of the external data provider MSCI ESG Research to assess investment options using a comprehensive ESG rating. The investments of the covered asset pool should show an above-average ESG score overall. In addition, new investments purchased during the financial year should not worsen the ESG score of the portfolio at the end of the year.
- Greenhouse gas emissions: The CO2 emissions of the investment portfolio are evaluated on a regular basis. New investments purchased during the financial year should not worsen the portfolio’s CO2 footprint per million euros invested at the end of the year.
1.4 Investment strategy
In its covered asset pool, PrismaLife pursues a deliberately conservative investment policy based on sustainability criteria. The primary objective is to generate the annual interest obligations. This goal is to be achieved by investing in sustainable assets also in the future.
When selecting suitable investments, the first step is to evaluate classic key figures such as yield, duration and creditworthiness of the issuers. In a second step, investments suitable according to these key figures are measured against ESG criteria. Exclusion criteria apply to all new investments, distinguishing between companies and sovereigns as issuers. In addition, the investments of the covered asset pool should achieve an above-average MSCI ESG score overall. New investments purchased during the course of a financial year should not worsen the ESG score of the portfolio at the end of the year. In addition, the level of CO2 emissions of the portfolio is measured. New investments purchased during the financial year should not worsen the portfolio’s CO2 footprint per million euros invested at the end of the year.
Existing investments are regularly monitored according to the same ESG criteria. In the event of a severe breach of the defined exclusion criteria, it is examined whether the position can be reduced.
The assessment of good governance practices of the investee companies is considered in various aspects of the sustainability strategy pursued. On the one hand, when determining the MSCI ESG rating, it is assessed, among other things, whether the corporate governance poses material risks to the investment. In addition, minimum protection measures are anchored in the applicable exclusion criteria. Good governance practices in terms of democratic governance are also assessed for sovereign bonds. All exclusion criteria are also regularly monitored for investments in the portfolio. In the event of severe violations or controversies, it is examined whether the position can be reduced.
1.5 Proportion of investments
This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment. Investments are mainly made in investments that focus on environmental or social characteristics. These investments are made to achieve the promoted environmental or social characteristics. In addition, cash may be held in the portfolio for liquidity purposes and strategic considerations. Furthermore, the category «Other investments» may also include investments for which no sustainability data is available.
1.6 Monitoring of environmental or social characteristics
The environmental and social characteristics of the assets in the portfolio are reviewed regularly, but at least once a year. PrismaLife uses the service of the external data provider MSCI ESG Research to evaluate the investments on the basis of a comprehensive ESG rating, CO2 footprint and the defined exclusion criteria. The results of the analyses are presented to the Investment Committee. In the case of severe findings, it is examined whether the position can be reduced.
1.7 Methodologies for environmental or social characteristics
PrismaLife uses the service of the external dataprovider MSCI ESG Research, that provides comprehensive sustainability data. The responsible employees at PrismaLife are trained in the use of this data and always keep their knowledge on the subject of sustainability up to date. At the heart of the analysis is the MSCI ESG Score, which combines a variety of data on the handling of sustainability risks and opportunities as well as on adverse sustainability impacts into a rating for companies and sovereigns. In addition, data on CO2 footprints and controversies in connection with the defined exclusion criteria is evaluated.
1.8 Data sources and processing
PrismaLife uses sustainability data provided by MSCI ESG Research to assess the defined exclusion criteria and to calculate the ESG score and the CO2 footprint of the portfolio. PrismaLife does not estimate any data at the current time.
1.9 Limitations to methodologies and data
Investments for which MSCI ESG Research does not provide data can be made as part of the category «Other Investments». These investments will be included in the regular analysis. If data becomes available that would argue against an investment, the case will be considered by the Investment Committee and it will be examined whether the position can be reduced.
1.10 Due diligence
PrismaLife AG considers the principle adverse impacts of investment decisions on sustainability factors in the areas of environment, social affairs and employment, respect for human rights and the fight against corruption and bribery in order to maintain due diligence in the investments of the covered asset pool. In the area of environment, special consideration is given to greenhouse gas emissions and in the area of social affairs and employment to violations of UNGC principles and involvement in controversial weapons. These topics are anchored in the defined exclusion criteria and are regularly monitored.
This ensures that investments are not made in companies and/or financial instruments with particularly high adverse impacts on sustainability factors. If an increase in adverse impacts is identified in existing investments, it is examined whether the affected positions can be reduced.
1.11 Engagement policies
PrismaLife currently does not hold any direct equity investments and therefore cannot exercise any active voting rights in the sense of an ESG engagement. In addition, in view of the comparatively small covered asset pool, PrismaLife has hardly any opportunities to influence ESG aspects by actively exercising voting rights.
Pre-contractual ESG information
Sicherungsvermögen der PrismaLife AG (PDF, German Version)
Sondervermögen Taggeld (PDF, German Version)
2. Sustainability-related disclosure on the insurance products of PrismaLife AG
Sustainability-related information on PrismaLife insurance tariffs can be found on the page of the respective tariff.
FID – PrismaFlexInvest
FIPD – PrismaFlexInvestPlus
DV Bertrandt – Direktversicherung Bertrandt
Status June 30th 2023: In the updated version, the “information at a company level” has been extended to include the statement on the adverse sustainability impacts (PAI statement) in accordance with CDR 2022/1288.
Status April 1st 2023:The information on sustainability according to the Regulation on Sustainability Disclosure Requirements in the Financial Services Sector (EU) 2019/2088 pursuant to Art. 3-5 was previously deposited in the annex of the sustainability report. In the updated version, the texts on sustainability risks in investment decision-making processes pursuant to Art. 3 SFDR have been clarified and streamlined. The exclusion criterion for sovereign bonds “authoritarian regimes” was specified by the addition of “or unfree countries according to the Freedom House classification”.
The information on the remuneration policy in connection with the consideration of sustainability risks pursuant to Art. 5 SFDR was supplemented by the statement on the variable remuneration of the Executive Board.
Status December 30th 2022: Publication of the product-related disclosures pursuant to Art. 10 SFDR.
Sustainability-related disclosures
As a participant on the financial market within the meaning of Regulation (EU) 2019/2088 on sustainability-related disclosure requirements in the financial services sector (the so-called Disclosure or Transparency Regulation or SFDR), PrismaLife AG is obliged to disclose certain sustainability-related information at the corporate and product levels.
Sustainability-related disclosure on the security and special assets of PrismaLife AG
1. Summary
PrismaLife’s protection and special assets are managed in a joint portfolio, the so-called cover pool. Environmental and social features are advertised, but no sustainable investments are targeted. The considered environmental and social characteristics include sector and value-based exclusions, a comprehensive assessment of ESG factors and the CO2 intensity of the investments.
As a sustainable pension specialist, PrismaLife AG consistently follows a two-stage investment process that includes return, liquidity and risk parameters as well as ESG objectives. In the first stage, the financial market-oriented analysis is carried out according to asset classes, sectors, yields and maturities as well as classic rating ratios. In the second stage, potential investment products are screened against ESG criteria and prioritised if necessary. The investment decision is then made according to the better ESG score in each case and the lowest possible CO2 intensity, as well as considering the defined exclusion criteria. Data from a recognised external data provider specialising in sustainability analysis is used to evaluate the investment options (currently MSCI ESG Research). Existing investments are regularly monitored according to the same ESG criteria. In the event of serious violations or controversies, it is examined whether the position can be reduced.
2. No significant impairment of the sustainable investment objective
This financial product advertises environmental or social features, but does not aim at sustainable investments.
3. Environmental or social characteristics of the financial product
The environmental and social features of this financial product include the following:
- Sector and value-based exclusions: Exclusion criteria are applied to investments. A distinction is made between criteria for companies and states.
- ESG assessment: PrismaLife uses the service of the external data provider MSCI ESG Research to assess investment options using a comprehensive ESG rating. The investments of the cover pool should show an above-average ESG score overall. In addition, new investments purchased during the financial year should not worsen the ESG score of the portfolio at the end of the year.
- Greenhouse gas emissions: The CO2 intensity of the investment portfolio is evaluated regularly. Investments with the lowest possible CO2 intensity shall be preferred and the CO2 emissions of the entire portfolio shall be below those of a non-ESG-optimised comparison portfolio.
4. Investment strategy
In its cover pool, PrismaLife pursues a deliberately conservative investment policy based on sustainability criteria. The primary objective is to generate the annual interest obligations. This goal should also be achieved in the future by investing in sustainable investments.
When selecting suitable investments, classical key figures such as yield, duration and creditworthiness of the issuers are first evaluated. In a second step, investments suitable according to these key figures are measured against ESG criteria. Exclusion criteria apply to all new investments, distinguishing between companies and governments as issuers. In addition, the investments of the cover pool should achieve an above-average MSCI ESG score overall. New investments purchased during the course of a financial year should not worsen the ESG score of the portfolio at the end of the year. In addition, the level of CO2 emissions of the portfolio is measured. Investments with the lowest possible CO2 intensity shall be preferred and the CO2 emissions of the entire portfolio shall be below those of a non-ESG-optimised comparison portfolio.
Existing investments are regularly monitored according to the same ESG criteria. In the event of a breach of the defined exclusion criteria, it is examined whether the position can be reduced.
The evaluation of good corporate governance practices is considered in various aspects of the sustainability strategy pursued. On the one hand, when determining the MSCI ESG rating, it is assessed, among other things, whether material risks for the investment emanate from the corporate governance. In addition, minimum protection measures are anchored in the applicable exclusion criteria. Good governance practices in terms of democratic governance are also assessed for sovereign bonds. All exclusion criteria are also regularly monitored for investments in the portfolio. In the event of serious violations or controversies, it is examined whether the position can be reduced.
5. Allocation of investments
This financial product advertises environmental or social features but does not aim for sustainable investments. Investments are mainly made in investments that focus on environmental or social characteristics. These investments are made to achieve the advertised environmental or social characteristics. In addition, cash may be held in the portfolio for liquidity purposes and strategic considerations. Furthermore, the category «Other investments» may also include investments for which no sustainability data is available.
6. Monitoring of environmental or social characteristics
The environmental and social characteristics of the investments in the portfolio are reviewed regularly, but at least once a year. PrismaLife uses the service of the external data provider MSCI ESG Research to evaluate the investments on the basis of a comprehensive ESG rating, CO2 intensity and the defined exclusion criteria. The results of the analyses are presented to the Investment Committee. In the case of serious findings, it is examined whether the position can be reduced.
7. Methods for ecological or social characteristics
PrismaLife uses the service of the external data provider MSCI ESG Research, which provides comprehensive sustainability data. The responsible employees at PrismaLife are trained in the use of this data and always keep their knowledge on the subject of sustainability up to date. At the heart of the analysis is the MSCI ESG Score, which combines a variety of data on the handling of sustainability risks and opportunities as well as on adverse sustainability impacts into a rating for companies and countries. In addition, data on CO2 intensity and controversies in connection with the defined exclusion criteria are evaluated.
8. Data sources and processing
PrismaLife uses sustainability data provided by MSCI ESG Research to assess the defined exclusion criteria and to calculate the ESG score and the CO2 intensity of the portfolio. PrismaLife does not estimate any data at the current time.
9. Limitation on methods and data
Investments for which MSCI ESG Research does not provide data may be made under «Other Invest-ments». These investments will be included in the regular analysis. In the event that data becomes available that would argue against an investment, the case will be considered by the Investment Committee and whether the position can be reduced.
10. Due dilligence obligationsuties of care
PrismaLife considers the most significant adverse effects of investment decisions on sustainability factors in the areas of environment, social affairs and employment, respect for human rights and the fight against corruption and bribery in order to maintain due diligence in the investments of the cover pool. Special consideration is given to greenhouse gas emissions in the area of the environment and to sviolations of UNGC principles and involvement in controversial weapons in the area of social affairs and employment. These topics are anchored in the defined exclusion criteria and are regularly monitored.
This ensures that investments are not made in companies and/or financial instruments with particularly high adverse impacts on sustainability factors. If an increase in adverse impacts is identified in existing investments, it is examined whether the affected positions can be reduced.
11. Participation policy
PrismaLife currently does not hold any direct equity investments and can therefore not actively exercise any voting rights in the sense of an ESG commitment. In addition, in view of the comparatively small cover pool, PrismaLife has hardly any opportunities to influence ESG aspects by actively exercising voting rights.
Sustainability-related disclosure on the insurance products of PrismaLife AG
Sustainability-related information on PrismaLife insurance tariffs can be found on the page of the respective tariff.