Sustainability

As a life insurance company offering insurance-based investment products (IBIPs), Quantum Leben AG is subject to sustainability-related disclosure obligations under EU Regulation 2019/2088 (SFDR) and is committed to transparency about how we address sustainability risks in our business. The following disclosures are published in accordance with Articles 3, 4, and 5 of SFDR.

Sustainability Risk Policy

Statement pursuant to Article 3 of Regulation (EU) 2019/2088 (SFDR)

What is a sustainability risk?

A sustainability risk is an environmental, social, or governance (ESG) event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment. Environmental risks include the physical effects of climate change, such as extreme heat events, flooding, and long-term temperature changes, and the economic costs of transitioning to a lower-carbon economy through regulatory and technological shifts. Social risks include changes in public health, healthcare access, and demographic trends. Governance risks include failures in corporate management, oversight, or ESG data integrity.

How Quantum Leben AG integrates sustainability risks

Quantum Leben AG (QL) is a life insurance undertaking offering unit-linked, term life, disability, accident and sickness products.  QL integrates sustainability risks as follows:

•    Own investment portfolio management: QL's own investment portfolio is managed by an external professional asset manager under a formal Investment Management Agreement. Each investment is subject to prior approval by QL's Investment Committee. Ongoing ESG oversight is maintained through monthly reporting provided by the asset manager, covering an overall portfolio ESG ranking based on external ratings, including a breakdown of the lowest-ranked positions.

•    Unit-linked products: QL's unit-linked products are classified as Article 6 under SFDR. QL does not promote sustainability characteristics in its unit-linked product range. Customer sustainability preferences are assessed as part of the suitability process in accordance with the Insurance Distribution Directive and Commission Delegated Regulation (EU) 2021/1257; where a customer expresses sustainability preferences, QL's products may not be suitable.

•    ESG risk management governance: QL maintains a formal ESG Integration Guideline as the primary governance reference for ESG risk integration. ESG risks are captured in QL's risk register and assessed annually as part of the standard risk management cycle. Climate and other ESG risks are integrated into QL's ORSA, including climate scenario analysis.

Principal Adverse Impacts

Statement pursuant to Article 4(1)(b) of Regulation (EU) 2019/2088 (SFDR)

'Principal adverse impacts' (PAI) are the negative effects that investment decisions may have on sustainability factors, including greenhouse gas emissions, biodiversity loss, water consumption, waste generation, and human and social rights.

Quantum Leben AG does not currently consider the principal adverse impacts of its investment decisions on sustainability factors. In accordance with Article 4(1)(b) of Regulation (EU) 2019/2088, QL sets out below the reasons for this decision.

Reason 1 – Indirect investment role

Quantum Leben AG offers unit-linked insurance products where the underlying assets are selected by clients or based on investment strategies defined by them. While QL is responsible as IBIP issuer for product design and the governance of the investment universe, the security-level investment decisions are taken independently by third-party fund managers. The mandatory PAI indicators under Annex I of Commission Delegated Regulation (EU) 2022/1288, such as greenhouse gas intensity, biodiversity impact, and social violations, arise at the level of individual securities, not at the level of QL's role as IBIP issuer.

Reason 2 – Disproportionate administrative burden

Aggregating security-level ESG data across all funds in QL's product range would require significant internal infrastructure and external data sourcing that is disproportionate to QL's size and resources.

Remuneration Policy

Statement pursuant to Article 5 of Regulation (EU) 2019/2088 (SFDR)

Article 5 of Regulation (EU) 2019/2088 requires Quantum Leben AG to publish information on how its remuneration policies are consistent with the integration of sustainability risks.

QL's remuneration policy applies to all employees and governing body members. The remuneration policy is consistent with the integration of sustainability risks. Sustainability risks neither positively nor negatively influence the remuneration of Quantum Leben AG.

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