SUSTAINABILITY | 23.04.2021
MAPFRE investments: profitable and sustainable
MAPFRE’s commitment to sustainability is now reflected in its investment policy. The company develops products that are profitable for the client and also have a positive impact on society. Here is an overview of the criteria applied to help create a fairer and more ethical world. Yet another example of #PlayingOurPart.
MAPFRE continues to develop its commitment to sustainability by integrating environmental, social and corporate governance (ESG) criteria into its business and its investment decisions.
Its environmental criteria enable the company to contribute to reducing the effects of climate change for example, the social criteria promote equality and health and the governance criteria foster ethics and transparency.
MAPFRE is convinced that investment based on these criteria creates sustainable value in the medium- and long-term for clients, as well as having a positive impact on society and on the environment.
Recently, the Group’s Sustainability Committee approved the MAPFRE Responsible Investment Framework, which is based on the principles established by the United Nations and whose objective is to ensure that companies, banks and mutual funds, among others, seek ways to contribute to the development of a more stable and, above all, more sustainable financial system.
Most salient among these principles is the incorporation of ESG matters into analysis and decision-making processes in relation to investments; the requirement for transparent disclosure on ESG matters by the companies in which we invest; and the promotion of acceptance and application of these principles in the investment industry, and so on.
How are these principles applied?
These principles exist alongside the company’s responsibility as manager of its clients’ savings and investments. They apply to all assets in which MAPFRE invests, whether part of its own balance sheet or that of its clients.
MAPFRE has a range of RI (Responsible Investment) products. These include Capital Responsable, a mutual fund that invests in equities and fixed income securities of European companies selected on the basis of their ESG characteristics. In the development of these products, MAPFRE employs its own analysis methodology. Its Investment Risk Committee, which is part of MAPFRE AM, regularly analyzes the composition of the Group’s portfolios, their ESG ratings and their associated risks.
In addition to applying the above six principles, MAPFRE also has its own ESG analysis framework, which is periodically revised to incorporate best practices in this area, as well as to analyze any cases where a discrepancy has been found, and to apply the grounds for exclusion approved by MAPFRE, such as not investing in electricity and mining companies who derive more than 30 percent of their revenue from coal-based energy generation.