Línea Directa signs the United Nations’ Principles for Responsible Investment

• Línea Directa Aseguradora signs the six Principles for Responsible Investment (PRI), promoted by an international network of investors and the United Nations to encourage the incorporation of environmental, social, and governance (ESG) criteria in investments.
• This initiative, already joined by more than 5,000 entities worldwide, seeks to create a sustainable global financial system that rewards its users financially and benefits the environment and society. 
• As a PRI signatory and in line with its sustainability strategy, Línea Directa commits, among other things, to incorporate ESG criteria into its investment decisions, to be an active shareholder, and to periodically report on the progress in applying these Principles.
• Línea Directa, with an investment portfolio close to €1 billion in assets, already has a Sustainable Investment Policy based on the PRI, among other reference frameworks. 
• The Group’s adherence to these Principles adds to its recent adoption of the Principles for Sustainable Insurance (PSI), the TCFD recommendations on climate risks, and the UN Global Compact, among other key global sustainability initiatives.

Madrid, 16 September 2024.- Línea Directa Aseguradora has signed the Principles for Responsible Investment (PRI), promoted by an international network of investors and the United Nations, which encourage the incorporation of environmental, social, and governance (ESG) criteria in investment processes. The company thereby strengthens its commitment to sustainable finance and, as an institutional investor, to generating a positive impact on society and the environment.

These Principles were developed in 2005 by an international group of institutional investors and are backed by the United Nations Environment Programme Finance Initiative (UNEP FI), a partnership between the UN and the global financial sector to mobilize private funding that supports the building of a green economy. This alliance also created the Principles for Sustainable Insurance (2012) and the Principles for Responsible Banking (2019).

Línea Directa, with an investment portfolio of €1 billion in assets, now joins this global alliance, which currently includes more than 5,000 institutional investors from over 60 countries, including investment managers, asset owners, and service providers, managing around $120 trillion in assets. Of this community, more than 150 are Spanish entities.

The Group thus commits to adopting the six Principles for Responsible Investment, which provide a framework for building a sustainable global financial system that rewards investors financially and benefits the environment and society.

The first principle involves incorporating ESG criteria into the Group’s investment analysis and decision-making processes. The second involves being an active shareholder as an asset owner, for example, by exercising voting rights in companies where the entity holds shares.

PRI signatories must also promote the disclosure of ESG issues by the companies in which they invest and support the acceptance and implementation of the Principles within the investment sector. Fifth, they commit to working collaboratively to increase the effectiveness of PRI implementation. Finally, under the sixth principle, they must publish regular reports on the activities and progress made in applying these Principles.

Commitment to Sustainable Finance

Línea Directa already has a Sustainable Investment Policy based on the best practices and standards, such as regulations, conventions, and reference frameworks at both the national and international levels, including the PRI itself.

With this Policy, the Línea Directa Group aims to maximize the risk-return balance of its investments, minimizing the ESG risks associated with its investments, and thereby fostering more sustainable economic development by supporting certain positive-impact activities while avoiding or limiting those with an adverse impact.

For over a decade, Línea Directa has been integrating sustainability into its activity, strategy, and culture. Its adoption of this and other key initiatives to promote ESG dimensions is part of the actions outlined in the Group’s 2023-2025 Sustainability Plan.

In 2023, the entity signed the Principles for Sustainable Insurance (PSI), which set out actions for managing ESG risks and opportunities. The insurer has also adopted the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), a working group created by the G20’s Financial Stability Board to encourage companies to inform investors about the risks and opportunities that climate change poses to the company and how they manage them. In 2021, it joined the UN Global Compact, committing to its principles related to human rights, labor, the environment, and anti-corruption.