I work for an insurance company that is primarily involved in non-life insurance, but that also has a subsidiary within life insurance. We find it hard to see which parts of our portfolio that is manditory to include. As of now we know that the non-life insurance part must be included in a science based target, but we are unsure about some of the portfolios.
Here’s a short explanation:
The non-life part is an asset owner, with both internal and external investments. Our understanding is that all parts that are included in table 5.2 of the guidance must be covered by the target.
The life insurance part has many portfolios. Some of them are pension profiles where we take the final investment decision. Others are third party funds that are distributed from our platform, where the customer takes all investment decisions. Our understanding is that the profiles where we take the investment decision for the customer has to be included in a science based target. We are however uncertain about how to handle the third party funds that are free to choose for customers. Are they mandatory to include? If so, can you please give an example on how are we expected to express our target for these funds?
Please review these threads that I hope will shed some light on the subject.
Also, please be aware that SBTi applies an influence principle, hence if an FI can influence asset allocation, security selection, strategy design, etc. in some way, these assets should be included. This can be extended to the selection of third party funds available on your platform.