##### Sustainability governance.
###### Helvetia considers a good culture of sustainability and governance to be an important prerequisite for sustainable business activities and essential to maintaining long-term relationships with internal and external stakeholders.
Our approach
Helvetia is committed to responsible and sustainable corporate governance. Through an appropriate governance system, Helvetia ensures targeted and efficient implementation of its
Sustainability Strategy at all corporate levels and in all relevant business areas. This system
determines the rules on how we anchor sustainability aspects within the organisation. Good
sustainability governance is of the utmost importance to Helvetia; for example, in order to
avoid potential governance risks such as reputational damage or an increase in employee
turnover.
For the further development of our strategic sustainability framework, we align ourselves
with the expectations of our stakeholders, global sustainability initiatives and voluntary
standards. The Sustainability Strategy is defined and monitored by the Board of Directors.
The Executive Management is responsible for and oversees the implementation of the Sustainability Strategy. It focuses in particular on a proactive approach, promoting responsible
and transparent corporate governance, integrating sustainability aspects into the strategies
of the business units and generally raising awareness of sustainability issues among employees and managers.
Our approach includes linking the long-term variable remuneration of the Executive Management and Executive Board with progress in achieving the overarching sustainability goal of
an MSCI rating of at least "A". The remuneration of the market segment CEOs and local
management is also dependent on the annual customer satisfaction measurement (attained
using the net promoter score). Conversely, in order to put our Sustainability Strategy into action, we design structures, processes and Group-wise courses of action and organisational
instructions, such as guidelines for the consideration of ESG aspects in underwriting, for responsible investment and sustainable procurement.
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###### Organisation of the Group-wide sustainability governance
**Board of Directors**
The Board of Directors takes an active and formative role in connection with the sustainable
corporate governance of the Helvetia Group and it addresses the Group's sustainability management several times a year. As the highest management and administrative body, it is responsible for approval of the Sustainability Strategy and the sustainability targets defined therein, and for oversight of the sustainability management of the Helvetia Group. To this end, the
Board of Directors maintains an active and continuous dialogue with internal and external
stakeholders (particularly employees, business partners, investors, associations, authorities and
political leaders). This regular exchange with various stakeholder groups supports the Board
of Directors in particular in assessing the concrete effects of business activities from different
perspectives, in identifying important developments in the area of sustainability at an early
stage and thus ultimately in taking adequate account of economic, ecological and social responsibility in the strategic management of the company.
On a half-yearly basis, the Board of Directors exchanges views with internal and external sustainability specialists and is thus informed about relevant sustainability developments, such as
sustainability trends or changes in regulatory requirements.
The Board of Directors is supported in its strategic role and oversight function by the following
Board committees in the respective domains: The Nomination and Compensation Committee
deals in-depth with material topics, reviews progress in the implementation of the Group-wide
Sustainability Strategy and approves the sustainability report. The Investment and Risk Committee oversees risk management and due diligence processes. The Audit Committee monitors the
implementation of measures to ensure compliance.
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The performance of the role as the supreme governing body is also ensured, among other
things, by the adequate composition of the Board of Directors. Members of the Board of Directors are selected according to different criteria, based on legal and regulatory requirements,
and in particular according to the "fit and proper" principles. The personality and independence of candidates are of particular importance, as are – in the overall composition – technical
and professional qualifications and gender diversity.
**Establishment of the Helvetia Group's sustainability governance**
**Board**
**of Directors**
**Executive**
**Management**
**Group Sustainability**
**Committee**
**Chief Sustainability Officer**
**(CSO)**
**Group functions/segments/market units**
**Executive Management**
The Executive Management is responsible for implementing the Group-wide Sustainability
Strategy. As part of operational management and in order to implement the Sustainability Strategy, it sets guidelines for sustainability management in all areas of the company; for example,
risk management, underwriting, claims management, investment management, and in the area
of leadership and employee behaviour in general.
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**Group Sustainability Committee**
The Group Sustainability Committee, chaired by the Group Chief Corporate Center Officer,
is a committee of the Executive Management expanded to include specialists and key functions. The Chief Sustainability Officer and the Chief Risk Officer are also members of the
Sustainability Committee. The committee is tasked with managing the Group-wide operational implementation of the Sustainability Strategy. It supports the implementation of sustainability aspects into all core business areas and functions, monitors current developments in sustainability and anticipates their impact on the Helvetia business model. It also supports the
Executive Management in the creation and further development of the Sustainability Strategy
and other important sustainability management decisions.
**Chief Sustainability Officer**
The Chief Sustainability Officer is responsible for the Group-wide functional management
within the scope of the specified Sustainability Strategy, governance and the topics designed
for the Group-wide functional sustainability management, including compliance. The Chief
Sustainability Officer is supported by a team of sustainability specialists and specialists from
other Group functions. Responsibilities include actively managing and coordinating the implementation of the Sustainability Strategy and supporting the business units in integrating sustainability management into their core business (ESG integration), measuring and assessing
sustainability performance, and regularly reporting to the Group Sustainability Committee,
the Executive Management and the Board of Directors.
**Sustainability management in the market units**
The Group divisions and the Executive Boards of the market units are responsible for implementing and integrating the Sustainability Strategy and for ensuring compliance in their areas of responsibility. They are supported in these roles by the Group Sustainability Team and
local specialists.
The Group's market units each have their own sustainability organisation, which reports to
local management. Local sustainability officers are responsible for the operational implementation of Sustainability Strategy measures, monitoring of target achievement and support of
local management in ensuring regulatory compliance in their local jurisdictions. They generally support local management in fulfilling their sustainability management responsibilities.
They also coordinate local communication and reporting. The local sustainability officers
report to the local executive boards and also functionally to the Chief Sustainability Officer.