According to a Dec 9 press release, Singlife's public equity portfolio will track the performance of the MSCI Low Carbon Target Indexes, which aim to minimise portfolio exposure to emissions-related risks.
“By benchmarking against these indexes, Singlife can quantify how it contributes to global climate action as a financial services company,” says the company.
Singlife intends to reduce its carbon exposure in terms of carbon emissions and fossil fuel reserves. The indexes exclude investments in controversial weapons, ESG controversies, thermal coal mining (with a revenue threshold of 1%) and oil sands (with a revenue threshold of 5%).
As a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI), Singlife has committed to integrating sustainability across its business operations and investment strategies.
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Singlife was also the second insurer in Southeast Asia to be recognised as a signatory of the United Nations Principles for Sustainable Insurance (UN PSI).
Singlife CIO Allen Kuo says the company is “creating a structured, trackable path” for its decarbonisation journey by partnering “established, reputable players” like Amundi and MSCI.
Albert Tse, CEO of Amundi, South Asia, says the partnership reflects a “shared commitment to responsible investing”. “We look forward to working together to meet Singlife’s objectives, fostering resilience and promoting sustainable business practices across the portfolios.”
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Shane Edwards, head of APAC client coverage at MSCI, says: “The MSCI Low Carbon Target Indexes are designed to address carbon exposure by targeting both current emissions and fossil fuel reserves, which provide investors with a powerful tool to align portfolios with their sustainability objectives, helping them navigate the complexities of climate-focused investing with greater clarity and assurance.”
Singlife is the exclusive insurance provider for Singapore’s Ministry of Defence, Ministry of Home Affairs and Public Officers Group Insurance Scheme.
The merger of Aviva Singapore and Singlife was announced in September 2020 and created one of the largest homegrown financial services companies in Singapore in a deal valued at $3.2 billion. It was the largest insurance deal in Singapore at the time.
Singlife was subsequently acquired by Sumitomo Life, one of Japan’s leading life insurers, in March this year. The acquisition valued Singlife at $4.6 billion, making the transaction one of the largest insurance deals in Southeast Asia.
