Euler ILS Partners Ltd is committed to responsible investment practices, that align with our fiduciary obligations and the long-term interests of our investors. We integrate Environmental, Social, and Governance (ESG) considerations alongside commercial and economic factors throughout our investment and underwriting decision-making processes.
We acknowledge that conventional ESG assessment frameworks designed for traditional asset classes are not directly transferrable to the ILS asset class. In response, we have developed a proprietary ESG framework tailored specifically to the characteristics of ILS. Our approach leverages publicly available data, internal expertise, and external partnerships to ensure meaningful and effective ESG integration - aligned with industry standards and in accordance with evolving regulatory expectations and best practices, including alignment with the EU Sustainability Finance Disclosure Regulation (SFDR).
A forward-looking approach to resilience and responsibility
At Euler ILS Partners, we believe that sustainability and catastrophe resilience are intrinsically linked. As a specialized investment manager focused on insurance-linked strategies (ILS), we operate at the intersection of capital markets and catastrophe risk which offer a unique opportunity to support financial protection mechanisms in the face of climate-driven catastrophe events and underinsurance – reinforcing economic and social stability in disaster-affected regions.
Our mission is twofold: to deliver clients with access to uncorrelated, diversifying sources of risk-adjusted returns while contributing to the robustness of global risk transfer mechanisms and the resilience of communities impacted by catastrophe events.
Our sustainability investing policy
Insurance-linked strategies occupy a unique position in the sustainable investment landscape. Unlike traditional asset classes, ILS directly supports the financing of recovery and resilience following catastrophe events such as natural disasters. By allocating capital to ILS, investors are not only seeking returns that are uncorrelated with broader financial cycles — they are also reinforcing the global insurance system and contributing to societal recovery in times of crisis.
At Euler, we recognize this dual mandate. Our approach to sustainability is shaped by a deep understanding of catastrophe risk, a commitment to transparency, and a focus on long-term, risk-adjusted outcomes.
Euler’s approach to sustainable investing is formalized in our Sustainable Investing Policy, which outlines our methodology for ESG considerations into our investment and underwriting processes. This policy is consistent with our obligations under the EU Sustainable Finance Disclosure Regulation (SFDR), Regulation (EU) 2019/2088.
This policy applies to all investment funds (“the Funds”) managed by Euler that promote environmental and/or social characteristics under Article 8 SFDR or equivalent as per the legal documentation.
Our sustainability philosophy
We embed sustainability into our investment and governance frameworks across three strategic pillars:
1. Climate-aware risk management
As climate change influences the frequency and severity of extreme weather events, understanding physical climate risk is central to our investment process. We employ a combination of proprietary analytics and third-party catastrophe models to assess the robustness of each transaction. Our team continuously reviews evolving scientific evidence, regional climate trends, and model assumptions to maintain climate-aware portfolios that reflect long-term resilience.
We engage in active dialogue directly with certain sponsors and market participants to encourage transparency and responsible underwriting but alignment with sound governance practice.
2. ESG integration in underwriting and due diligence
We evaluate ESG related factors in evaluating cedants, transactions, and portfolios throughout the investment lifecycle. Our due diligence practice incorporates governance quality, regulatory history, underwriting ethics, transparency, and the broader social outcome of risk transfer and alignment with robust underwriting standards.
We apply exclusion criteria in line with international norms avoiding cedants, or practices that fail to meet our ESG standards.
3. Contributing to systemic resilience
Our strategies channel capital to help close the global protection gap by funding catastrophe risk transfer. Our strategies enable faster recovery following disasters and promote longer-term socioeconomic stability.
We view this systemic contribution to global resilience as a tangible and measurable expression of sustainability in action – reinforcing both investor objectives and societal benefits.
Governance and oversight
Our ESG strategy is overseen by the Euler ILS ESG Working Group, composed of senior professionals. ESG considerations are reviewed by our Executive Board, and we report regularly to our investors in Funds classified under Article 8 SFDR or equivalent on ESG disclosure requirements.
We are committed to aligning with global standards, including the EU Sustainable Finance Disclosure Regulation (SFDR). Where relevant, we incorporate Article 8 SFDR provisions into product design and reporting.
Transparency and collaboration
We believe that transparency builds trust. We provide detailed ESG reporting to enhance portfolio transparency for our clients. We also participate in certain industry ESG initiatives to promote sustainability standards across the ILS market.
Partnering with purpose
For our investors - pension funds, insurers, sovereigns, and multi-asset allocators across Europe and beyond - sustainability is now central to investment policy and fiduciary duty.
At Euler ILS Partners, we believe that by integrating ESG considerations into every step of our investment process, we contribute to more resilient portfolio with uncorrelated risk-adjusted returns but also align with certain long-term sustainability objectives. By allocating capital to ILS through a responsible and disciplined approach, we believe we can mitigate certain financial consequences of severe catastrophe events and consequently contribute to a more resilient financial system and a more sustainable future for communities most vulnerable to catastrophe risk.
Important information: The above information applies to investment fund(s) that apply our ESG Framework in their investment objectives as per the legal documentation. These ESG considerations may affect the investment team’s decisions and outcomes. Results may differ from investment funds that do not apply similar ESG considerations in their investment objectives. For further details, please refer to the legal documentation of the respective investment fund.