Charting a better way to sustainability

AS a leading financial services company, Singlife is committed to offering consumers a better way to financial freedom at every stage of their lives. Its technology-enabled solutions and wide range of products and services include insurance plans and employee benefits as well as investment and advisory solutions.

Notably, the company serves as the exclusive insurance provider for the Ministry of Defence, Ministry of Home Affairs, and Public Officers Group Insurance Scheme. In 2020, Singlife merged with Aviva Singapore in a deal valued at S$3.2 billion, creating one of the largest homegrown financial services companies.

Recognising the impact of sustainability on its business activities, Singlife embarked on a journey to embed ESG (environmental, social, and governance) processes and products at the heart of its operations. To guide this critical mission, the company established a Sustainability Office in September 2021.

"Sustainability presents both risks and opportunities for our business - sustainability trends for example could pose risks to our underwriting business in the form of changes to morbidity, mortality, and longevity arising from exposure to extreme weather and increased risks of vector-borne diseases. At the same time, we recognise that integrating sustainable practices into our business and sustainable product innovation is crucial if we want to succeed in the long term," says Ko Wen Chia, Head of Sustainability of Singlife.

Kim Rosenkilde, Group Chief Investment Officer of Singlife adds: "We are committed to managing sustainable impacts well and believe that investing in ESG funds will produce better investment returns over time. Our Investment Office is focused on building our portfolio of funds, and my team and I are involved in selecting and curating all the products that go onto our investment platform. We will not rest on our laurels, and will strive to stay ahead of the curve by doing a lot more in this relatively nascent area of investing."

The company's sustainability strategy is expressed through five focus areas: Being a Responsible Investor, an Accelerator of Net Zero, an Innovator for Green & Good, and Building a Sustainability-Embedded Culture. Underpinning these priorities is the company's robust foundation in governance and risk management practices.

"We believe that collective action on all areas will allow us to address environmental and social challenges more effectively, while supporting the creation of business value concurrently," explains Ko Wen.

Taking meaningful action

Singlife has wasted no time in realising its sustainability ambitions since starting on this journey. Within a year, the company became a signatory to the United Nations Principles of Sustainable Insurance (UN PSI), set an ambitious target to become a net zero emissions business by 2050, and published its inaugural climate-related financial disclosure report.

This is aligned with recommendations by the Task Force on Climate-related Financial Disclosures (TCFD) formed by the Financial Stability Board, an international body that seeks to strengthen and protect global financial markets from systemic risks such as climate change. "These associations provide Singlife with the guidance to adopt best practices and demonstrate our sustainability commitment," says Ko Wen.

Ko Wen was appointed a member of the Sustainability Reporting Advisory Committee (SRAC) set up last year by the Accounting and Corporate Regulatory Authority and Singapore Exchange Regulation to provide recommendations on the way forward for sustainability reporting in Singapore. In addition, Kim serves on the International Advisory Council for Climate Impact X - a global marketplace, auctions and exchange platform for trusted carbon credits - jointly established by DBS Bank, Singapore Exchange, Standard Chartered and Temasek.

Singlife's sustainability efforts have extended to its customer solutions. The company has launched several ESG-related products including electric vehicle insurance, rainfall protection cover for travellers, and green logistics fleet insurance under MAS' Project Greenprint.

Investing responsibly

Singlife seeks to safeguard the future not only through its insurance business, but also the way it invests. The company is of the view that the value, risks, and returns of a business which are increasingly impacted by ESG factors, must be considered carefully to achieve long-term and sustained value for all its stakeholders.

In particular, Singlife is working to reduce the contribution from its financed emissions in order to achieve its net zero emissions target by 2050. To do so, the firm is investing in environmentally responsible companies and solutions that support the transition to a greener economy. The company is also an advocate for the "just transition" approach, where social implications such as employment, human rights, and inclusion are also considered as it seeks to decarbonise its portfolios.

Singlife has committed over S$500 million towards sustainable investments as at the end of December 2022. These include investments in sustainable funds such as the Copenhagen Infrastructure Partners - Green Credit Fund, Qblue Balanced - Global Sustainable Leaders, BlackRock - Decarbonization Partners, Singapore Government Green Infrastructure Bond, and the Altrium Sustainability Fund I, launched by Azalea Investment Management and co-seeded by Singlife and sponsor, the Azalea Group, an indirect subsidiary of Temasek.

The company's investment approach is guided by internationally recognised principles and standards, such as the UN PSI, United Nations Principles for Responsible Investment, and the Singapore Stewardship Principles.

Singlife has appointed a sustainability data provider, Matter, to better measure the impact and performance of its global investments. In particular, the company seeks to understand how aligned its portfolio is with the Paris Agreement and the United Nations Sustainable Development Goals and establish a baseline against which it can track its ESG progress.

Singlife's ESG activities go beyond its business to encompass the communities it operates in. To this end, it has been actively giving back through a variety of initiatives. In 2022, the company planted 100 trees in support of Singapore's National Parks Board's OneMillionTrees initiative, and has pledged to plant another 1,500 trees over the next five years to mitigate climate change and promote biodiversity.

Beyond that, the company is helping to shape lives for the better. Singlife is working with organisations such as Thye Hua Kwan Moral Charities to run financial literacy programmes supporting individuals and their families in making informed financial decisions.

Singlife has also tied up with charity TomoWork, where its employees mentor students with special educational needs by offering advice and insights that can help guide them in their careers. It has also begun engaging with social service organisations that work with the less privileged, with a focus on wellbeing for caregivers and mental wellness.

Despite the progress made so far, Singlife is keenly aware of the challenges it faces in its sustainability journey. For one, its strategy is contingent on other players in its ecosystem - such as their investee companies and suppliers - being aligned with their climate action and emission reduction goals.

Says Ko Wen: "Achieving our sustainability targets will require a collaborative effort involving our various stakeholders. It is also important that our sustainability initiatives are aligned to the business and generate long-term value for all of them."

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