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Sustainability strategy
The route to a sustainable future
Our sustainability strategy
The world is in a constant state of change. That’s why it is essential for us as a capital investor to recognise opportunities and risks which arise as a result of new developments and transformation processes and systematically take them into account in our investment decisions. This also applies to developments from the environment, social and governance sectors (ESG). This allows, for example, changed temperatures in the Earth’s atmosphere as a result of climate change or new statutory requirements relating to working conditions in the supply chain to have an affect on asset, financial and yield position as well as the reputations of companies.
When compiling the products our customers can choose from, we consider sustainability risks of products in addition to their security and yield. When advising customers, we ensure that individual customer needs in relation to risk propensity, risk viability, return expectations and individual sustainability preferences are taken into account when selecting the individual product.
The products from our companies Bayern-Versicherung Lebensversicherung AG, Versicherungskammer Bayern Pensionskasse Aktiengesellschaft and Pensionskasse VVaG are products with ESG in mind, i.e., they are products with sustainable features, not sustainable products in and of themselves. One exception is the FlexInvest product, which is not associated with ESG in any way.
The products from our companies Bayern-Versicherung Lebensversicherung AG, Versicherungskammer Bayern Pensionskasse Aktiengesellschaft and Pensionskasse VVaG are products with ESG in mind, i.e., they are products with sustainable features, not sustainable products in and of themselves. One exception is the FlexInvest product, which is not associated with ESG in any way.
Sustainability strategy as a continuous process
We see a stronger focus on higher sustainability goals in the future as a continuous process.
Our capital investments
The long-term and sustainable feasibility of insurance obligations is the central goal of our capital investments; this allows us to fulfil our responsibility towards our customers. Our goal is to create future-proof capital investments which are characterised by greater stability and longevity. That’s why we don’t allow ourselves to be guided by quick trends when giving recommendations and making investments, rather, we strive to recognise long-term developments on the capital markets as early as possible and position ourselves accordingly. In doing so, we take ESG topics (environment, social and governance) into account. We always implement ecological and social criteria taking into account the requirements from the supervisory authorities in relation to security, profitability and liquidity while also ensuring a sufficient mix and spread.
We are aware that our capital investments are a powerful lever, so we want to create these in a responsible manner taking into account the aspect of sustainability. As a signatory to the Principles for Responsible Investment (PRI), we are constantly developing our approach to sustainability for capital investments in line with the six accompanying principles. We have integrated our goal of ensuring the group’s investment portfolio is climate neutral by 2050 into an international industry initiative by joining the Net-Zero Asset Owner Alliance. The initiative convened by the United Nations unites large capital investors around the globe in their efforts to contribute towards achieving the Paris Climate Agreement.
As an asset manager of Versicherungskammer Bayern, Tecta Invest GmbH is implementing these principles and our sustainability strategy. With the Sustainability-Oriented Investment (NOA) and the Yield-Optimised Capital Investment Future (ROK Future) investment concepts, we are offering our own investment strategies with sustainable features as part of our products.
We are aware that our capital investments are a powerful lever, so we want to create these in a responsible manner taking into account the aspect of sustainability. As a signatory to the Principles for Responsible Investment (PRI), we are constantly developing our approach to sustainability for capital investments in line with the six accompanying principles. We have integrated our goal of ensuring the group’s investment portfolio is climate neutral by 2050 into an international industry initiative by joining the Net-Zero Asset Owner Alliance. The initiative convened by the United Nations unites large capital investors around the globe in their efforts to contribute towards achieving the Paris Climate Agreement.
As an asset manager of Versicherungskammer Bayern, Tecta Invest GmbH is implementing these principles and our sustainability strategy. With the Sustainability-Oriented Investment (NOA) and the Yield-Optimised Capital Investment Future (ROK Future) investment concepts, we are offering our own investment strategies with sustainable features as part of our products.
Handling negative consequences of sustainability factors
As an insurance group, we are aware that our capital investments are a powerful lever, so we want to create these in a responsible manner taking into account the aspect of sustainability. Our capital investments entail both positive and negative consequences for the environment and society downstream. The sustainability strategy for capital investments that applies throughout our corporate group establishes a minimum standard that demands fundamental standards in sustainable management and allows us to live up to our image of ourselves as the regions’ insurer with a public remit.
At our companies Bayern-Versicherung Lebensversicherung AG, Versicherungskammer Bayern Pensionskasse Aktiengesellschaft and Pensionskasse VVaG, the most significant negative consequences of investment decisions in relation to sustainability factors are taken into account at the company level. To prioritise and assess the most significant negative consequences for sustainability and sustainability indicators, we have established a PAI committee for these companies (PAI being short for principle adverse impacts). This committee features representatives from the relevant companies and cross-group departments such as Investment Strategy & Investments, Strategic Asset Allocation & Capital Investment Planning and Portfolio Management. The committee focuses on the group’s sustainability strategy, considers current developments and is careful to ensure the approach is as holistic as possible by taking into account the consequences on a variety of aspects.
When considering the negative effects of investment decisions on sustainability factors at the company level, we generally differentiate between the following capital investments:
- Guarantee assets
- Investment components of products linked to funds which the group manage internally
- Investment components of products linked to funds belonging to external asset managers and investment companies
Our potential influence on the sustainability consequences associated with the capital investments is dependent on whether the investment component is managed internally or externally as well as on the form and class of the investment. The availability of data and quality are also of central importance, which is why we are constantly trying to improve these.
In order to take the negative sustainability consequences into account in all three of the aforementioned categories, we have developed our own approach which is largely based on two pillars:
In order to take the negative sustainability consequences into account in all three of the aforementioned categories, we have developed our own approach which is largely based on two pillars:
1. Our sustainability strategy for the group’s capital investments
2. Monitoring by the PAI committee
2. Monitoring by the PAI committee
The first pillar is our group-wide sustainability strategy for capital investments. Taking into account the prioritisation and assessment of sustainability consequences, this includes a value-based minimum standard for specific asset guarantee capital investments and investment components managed by the group internally that are made after 1 June 2022. Certain controversial fields of business are excluded from these. While we use these exclusion criteria to limit the negative consequences on sustainability factors, the exclusions focus on specific investments and forms. This includes investment forms and instruments whose design we are able to directly influence, such as direct investments in individual shares and corporate bonds. As part of our goal to ensure capital investments are climate neutral by 2050, we are also working on decarbonising our portfolios and are thus having an effect on greenhouse gas-related sustainability factors.
As the second pillar, we have worked with the PAI committee to create a body which assesses the development of sustainability indicators and the suitability of existing measures twice a year in order to use this as a basis to discuss the necessity of additional measures. Indicators from all three aforementioned categories are taken into account here. So it’s not just guarantee assets and investment components managed internally within the group, but investment components managed externally as well. In addition to historic development, this allows comparisons to be drawn with indices or competitors, among other things. Additional measures may include the exclusion of individual emitters (e.g. states or companies) or even an adjustment of the funds selectable as part of fund-linked life insurance. The committee submits the measures to the relevant process manager and decision-making committees in accordance with the distribution of responsibilities among the insurance companies and/or group as a recommendation.
We formalised this approach to considering the negative sustainability consequences in the second half of the 2022 financial year. Previously, the most significant negative consequences of investment decisions for sustainability factors were only taken into account insofar as exclusion criteria were implemented in specific funds and fund segments.
As the second pillar, we have worked with the PAI committee to create a body which assesses the development of sustainability indicators and the suitability of existing measures twice a year in order to use this as a basis to discuss the necessity of additional measures. Indicators from all three aforementioned categories are taken into account here. So it’s not just guarantee assets and investment components managed internally within the group, but investment components managed externally as well. In addition to historic development, this allows comparisons to be drawn with indices or competitors, among other things. Additional measures may include the exclusion of individual emitters (e.g. states or companies) or even an adjustment of the funds selectable as part of fund-linked life insurance. The committee submits the measures to the relevant process manager and decision-making committees in accordance with the distribution of responsibilities among the insurance companies and/or group as a recommendation.
We formalised this approach to considering the negative sustainability consequences in the second half of the 2022 financial year. Previously, the most significant negative consequences of investment decisions for sustainability factors were only taken into account insofar as exclusion criteria were implemented in specific funds and fund segments.
Our approach to taking into account the most significant negative sustainability consequences and the associated measures is based on internationally recognised standards and frameworks. This is how we regularly review, for example, guarantee assets for investments in companies with severe violations of the principles of the UN Global Compact. We have integrated our goals of decarbonising guarantee assets and investment components managed within the group into an international industry initiative by joining the Net-Zero Asset Owner Alliance.
We publish the development of the most significant negative consequences for sustainability factors, measures both taken and planned, goals and additional information here each year in the legally required format.
We publish the development of the most significant negative consequences for sustainability factors, measures both taken and planned, goals and additional information here each year in the legally required format.
Our strategies for handling sustainability risks
We consider sustainability risks to be events or conditions from the environment, social or governance (ESG) sectors whose occurrence will actually or potentially have significant negative consequences on capital investments. We consider sustainability risks to be partial aspects of existing risk types here. Risks and opportunities associated with ESG or sustainability aspects are generally considered by our investment specialists during the investment process of all group companies. This applies to our companies Bayern-Versicherung Lebensversicherung AG, Versicherungskammer Bayern Pensionskasse Aktiengesellschaft and Pensionskasse VVaG.
As a driver of existing risk categories, we have integrated the consideration of sustainability risks into the existing process when making capital investments. To do this, investment class-specific approaches have been created in order take into account the features of different assets and purchasing processes. We also regularly analyse our holdings as a whole to identify sustainability risks. In doing so, we investigate, for example, how our capital investment is performing in response to a variety of climate scenarios. When managing capital investments, this allows us to assess whether circumstances from the environment, social or governance sectors could have a positive or negative effect on the financial value of our investments. Significant circumstances are ultimately presented to the investment committee to allow a decision to be made.
Sustainability risks can be consciously tackled and identified potential returns can be used. The approach is not geared towards limiting the negative consequences of our capital investment in relation to the environmental, social and governance sectors. However, these consequences can provide information on the financial opportunities and risks and are thus taken into account during our investment process. This is carried out depending on the relevance or significance for the investment’s profitability.
Capital investments of Versicherungskammer
For your personal insurance solution, Versicherungskammer, being Germany’s largest public insurer, offers a high-yield and sustainable investment concept. Learn more about the capital investments of Versicherungskammer
Our fund selection process
Our goal is to provide our customers with a high-quality range of funds in order to operate promising insurance policies for the future. In doing so, we aim to cover relevant asset classes, markets, topics and opportunities using a manageable number of funds and investment concepts. To do this, we consult and analyse quantitative (for example, fund size, duration and track record as well as the fund’s cost structure) and qualitative criteria (for example, performance and ratings) when selecting funds to start doing business with. As part of our qualitative examination, the topic of sustainability also plays a key role. When concluding new business, we therefore prefer to exclusively work with companies which - like ourselves - are signatories of the Principles for Responsible Investment (PRI).
With regard to the investment funds we offer when conducting new business, we aim to further increase the share of the fund with sustainable characteristics. In addition to the products in which these funds will be exclusively used (PrivatRente/BasisRente NachhaltigkeitsInvest), we aim to give preference to the inclusion of funds with sustainable characteristics with regard to our other focus products as well. If they are both equally suitable, funds with sustainable characteristics should be given preference when determining inclusion into our range of funds. The goal in doing this is to cover asset classes, markets and topics which will be relevant for the future in a targeted manner with funds which possess sustainable characteristics. This will offer our customers the opportunity to pursue their provision for the future according to their individual sustainability preferences (PAI, ESG, E).
We review our investment concepts and the investment funds regularly and use them to derive possible adjustments which our existing customers can also use.
With regard to the investment funds we offer when conducting new business, we aim to further increase the share of the fund with sustainable characteristics. In addition to the products in which these funds will be exclusively used (PrivatRente/BasisRente NachhaltigkeitsInvest), we aim to give preference to the inclusion of funds with sustainable characteristics with regard to our other focus products as well. If they are both equally suitable, funds with sustainable characteristics should be given preference when determining inclusion into our range of funds. The goal in doing this is to cover asset classes, markets and topics which will be relevant for the future in a targeted manner with funds which possess sustainable characteristics. This will offer our customers the opportunity to pursue their provision for the future according to their individual sustainability preferences (PAI, ESG, E).
We review our investment concepts and the investment funds regularly and use them to derive possible adjustments which our existing customers can also use.
Our remuneration policy in connection with sustainability risks
When it comes to remuneration for our sales partners, we ensure that we act in our customers' best interests. The remuneration we pay is independent of whether sustainability risks are involved.
The structure for remunerating the company management also takes into account the principle of sustainability. With its combination of fixed and variable remuneration, it is focused on the long-term success of the company, with the variable remuneration for members of the Board of Directors containing a delayed component. This ensures the remuneration does not contain any elements which encourage an excessive willingness to take risks. Appropriate management of business risks, including sustainability risks, forms the vital basis for achieving remuneration-relevant goals.
Our employees are remunerated in a transparent, fair and performance-appropriate manner. We are members of the Arbeitgeberverband der Versicherungsunternehmen in Deutschland (Employers’ Association for Insurance Companies in Germany) and are thus bound by the existing collective agreements. Employees whose remuneration contains a variable share - this is particularly true for employees whose work can have a significant impact on the group companies’ risk profile (risk-takers) - are subject to the condition, among others, that no false incentives relating to the relevant risks, including sustainability risks, can be created. The processes on which this is based constitute part of the group-wide risk management system.
The structure for remunerating the company management also takes into account the principle of sustainability. With its combination of fixed and variable remuneration, it is focused on the long-term success of the company, with the variable remuneration for members of the Board of Directors containing a delayed component. This ensures the remuneration does not contain any elements which encourage an excessive willingness to take risks. Appropriate management of business risks, including sustainability risks, forms the vital basis for achieving remuneration-relevant goals.
Our employees are remunerated in a transparent, fair and performance-appropriate manner. We are members of the Arbeitgeberverband der Versicherungsunternehmen in Deutschland (Employers’ Association for Insurance Companies in Germany) and are thus bound by the existing collective agreements. Employees whose remuneration contains a variable share - this is particularly true for employees whose work can have a significant impact on the group companies’ risk profile (risk-takers) - are subject to the condition, among others, that no false incentives relating to the relevant risks, including sustainability risks, can be created. The processes on which this is based constitute part of the group-wide risk management system.
Our products
With our insurance investment products, your savings contributions will be saved in your contract’s capital reserves. The capital reserves ensure that we will be able to provide the agreed services. It is made up of various capital investments and consists of the secured capital (conventional capital reserves as part of our guarantee assets), the proportional capital reserves (shares of our insurance fund, our investment concepts and/or investment funds selected by you) depending on the product. The capital reserves are divided into their components according to a determined, product-dependent procedure.
Our insurance products can be split into three categories in relation to this distribution of the capital reserves:
Our insurance products can be split into three categories in relation to this distribution of the capital reserves:
- Modern classics: Full investment in guarantee assets.
- Hybrid products: Investment in guarantee assets, insurance funds and selectable investment concepts and/or investment funds.
- Fund-linked insurance: Full investment in the capital market with freedom to select the investment fund and transfer to the guarantee assets when you begin receiving your pension.
The modern classics invest solely in guarantee assets; only if fund-linked surplus sharing is selected will the allocated surplus shares be converted into shares from our “InvestmentKonzept” investment concept. Guarantee assets are a separate part of an insurer's assets which secures claims of our policyholders. As a result, the strict requirements according to the Insurance Supervision Act apply.
Insurance policies which are only linked to funds invest exclusively in freely selectable funds and investment concepts before you start receiving your pension.
Hybrid products invest in guarantee assets, our insurance fund and our investment concepts and/or in investment funds.
Our investment concepts are in the ROK Klassik, ROK Chance, ROK Plus and/or ROK Plus2, IOK and/or IOK2, ROK Zukunft and NOA strategies. Our ROK Plus and/or ROK Plus2, IOK and/or IOK2 and NOA are each associated with the relevant insurance product, with customers being free to choose our other investment concepts.
Insurance policies which are only linked to funds invest exclusively in freely selectable funds and investment concepts before you start receiving your pension.
Hybrid products invest in guarantee assets, our insurance fund and our investment concepts and/or in investment funds.
Our investment concepts are in the ROK Klassik, ROK Chance, ROK Plus and/or ROK Plus2, IOK and/or IOK2, ROK Zukunft and NOA strategies. Our ROK Plus and/or ROK Plus2, IOK and/or IOK2 and NOA are each associated with the relevant insurance product, with customers being free to choose our other investment concepts.
Below is an overview of our currently available insurance products (as of 17/12/2022), sorted by tier.
The information section of each product has a product information summary regarding sustainability. You can access this by clicking on it.
For the relevant product, you will also see further information on the sustainability of the capital investments which are either strictly linked to it or freely selectable (referred to as investment options). Clicking on the relevant investment option will show you further information in our sustainability leaflets which contain all ESG-relevant information for the relevant investment option.
Your specific opportunities and chances can be found in the following overview of all our products.
At this point, we would like to refer you to the fact that we broker products of Sparkassen Pensionskasse. Company- and product-related sustainability information on Sparkassen Pensionskasse can be found here.
The products from our companies Bayern-Versicherung Lebensversicherung AG, Versicherungskammer Bayern Pensionskasse Aktiengesellschaft and Pensionskasse VVaG are products with ESG in mind, i.e., they are products with sustainable features, not sustainable products in and of themselves. One exception is the FlexInvest product, which is not associated with ESG in any way.
For the relevant product, you will also see further information on the sustainability of the capital investments which are either strictly linked to it or freely selectable (referred to as investment options). Clicking on the relevant investment option will show you further information in our sustainability leaflets which contain all ESG-relevant information for the relevant investment option.
Your specific opportunities and chances can be found in the following overview of all our products.
At this point, we would like to refer you to the fact that we broker products of Sparkassen Pensionskasse. Company- and product-related sustainability information on Sparkassen Pensionskasse can be found here.
The products from our companies Bayern-Versicherung Lebensversicherung AG, Versicherungskammer Bayern Pensionskasse Aktiengesellschaft and Pensionskasse VVaG are products with ESG in mind, i.e., they are products with sustainable features, not sustainable products in and of themselves. One exception is the FlexInvest product, which is not associated with ESG in any way.
Our PrivatRente NachhaltigkeitInvest
When developing products for our latest fund-linked pension insurance, we have placed a particular focus on ecological, economical and social aspects. The result is our PrivatRente NachhaltigkeitInvest: An ideal combination of provision for the future and a sustainable commitment.
Our PrivatRente NachhaltigkeitInvest sets itself apart from the rest as the investment is only made in investment funds that take ecological and social aspects as well as the principles of responsible state and corporate governance into account when they invest.
In this regard, you can assist the sustainable transformation by selecting the investment fund. This ensures the investment is made in investment funds that are suited to influencing social and ecological factors in addition to financial yields. Your specific opportunities and chances can be found in the following overview of all our products.
The NachhaltigkeitInvest product is also available in the form of the state-subsidised BasisRente NachhaltigkeitsInvest.
Our PrivatRente NachhaltigkeitInvest sets itself apart from the rest as the investment is only made in investment funds that take ecological and social aspects as well as the principles of responsible state and corporate governance into account when they invest.
In this regard, you can assist the sustainable transformation by selecting the investment fund. This ensures the investment is made in investment funds that are suited to influencing social and ecological factors in addition to financial yields. Your specific opportunities and chances can be found in the following overview of all our products.
The NachhaltigkeitInvest product is also available in the form of the state-subsidised BasisRente NachhaltigkeitsInvest.
Overview of our products
Below you will find an overview of our currently offered insurance products and the fixed or optional investments associated with them:
This overview contains all information on sustainability-related disclosure obligations at the product level in accordance with Regulation (EU) 2019/2088 of 27/11/2019 (referred to as the Sustainable Finance Disclosure Regulation, abbreviated to SFDR).
Sustainability-related disclosure
Disclosure pursuant to Article 10 (1) of the EU Sustainable Finance Disclosure Regulation
Information on investment options and investment funds
Explanation of the main adverse impacts of investment decisions on sustainability factors
Pre-contractual information
Pre-contractual information on products and investment options
Annual information
Annual information on the investment options included in our products
Schicht 3 | private Vorsorge
Für isländische Kunden: PrivatRente WachstumGarant Iceland
Tarif: FARIS Produktinfo
Versicherungsart: Rentenversicherung mit aufgeschobener Rentenzahlung mit Indexorientierung gegen laufende Beiträge ohne steuerliche Förderung
Anlageoptionen: Sicherungsvermögen, IOK2
Nachhaltigkeitsbezogene Offenlegungspflicht: Art. 8 und 10 Verordnung (EU) 2019/2088, Art. 8 und 10 Verordnung (EU) 2019/2088
If you have entered into one of our products, you will also regularly receive additional information on sustainability as part of our annual updates and/or account statements.
Change history
In accordance with Article 12 of Regulation (EU) 2019/2088, here you will find an explanation on the changes to the information published above that have been implemented.