Sustainability has become an essential part of business decisions for many companies, as it simultaneously reduces risks associated with climate change and ensures long-term stability and profitability
We spoke with Svetlana Smiljanić, Member of the Executive Board of Wiener Städtische Insurance, about how operating within the largest insurance group in CEE supports the implementation of ESG strategies, how the balance between profit, ethics, and sustainability is maintained, and why employee engagement in socially responsible initiatives matters.
Wiener Städtische Insurance is part of the Vienna Insurance Group. How do you adapt the Group’s strategic guidelines to the local market?
— Naturally, our market has its own specific characteristics, and we adapt by creating economic value today — but not at the expense of tomorrow. Local regulations, which clearly define the investment activities of insurance companies and predominantly limit them to government bonds and the local financial market, also shape our investment portfolio, meaning ESG investments is more limited in this segment.
However, one of the steps we have already taken on the path towards sustainability — and which has contributed to reducing our carbon footprint — is sourcing electricity from renewable sources for our investment properties.
In terms of underwriting the Group’s policy is to reduce exposure to coal-related risks, which we also maintain at the local level. We also pay close attention to the absolute emissions of our policyholders when considering new insurance coverage.
In addition, we encourage the uptake of electric and hybrid vehicle insurance through incentive schemes, as well as increasing their presence in our own fleet. The Eco Casco Bonus insurance product, developed in partnership with Toyota, is just one example of a customized solution designed to support environmentally beneficial initiatives.
What does sustainability mean to you?
— Companies have a key role — and therefore responsibility — in shaping a new era of sustainable business development, where success depends on maintaining a balance between profit, ethics and sustainability, with the latter two factors gaining increasing weight in supporting this equilibrium.
Through incentive schemes, we promote the growth of insured electric and hybrid vehicles
Managing long-term success requires active engagement with environmental, social and financial issues, which are defined through our Local Sustainability Programme 2024.
This programme covers six key areas, and our fields of activity encompass asset management, underwriting, management of our business operations, employees, clients, and the wider community. For each of these areas, we have defined specific targets and key performance indicators, to help us monitor our progress on the path of development.
What socially responsible projects are you implementing? How important are environmental initiatives to you?
— We are deeply committed to society — we care about our environment, about people, and about nature.
We demonstrate community responsibility daily through our corporate volunteering programme, with employees personally engaging in humanitarian activities, promoting social inclusion and education, and initiate environmental and nature protection campaigns. In 2024 alone, over 760 of my colleagues implemented more than 20 such initiatives.
A key pillar of our community engagement is raising public awareness about risk. A survey conducted by Gallup International for our Group across nine countries in the region revealed that in Serbia, awareness of everyday risks and how to manage them is lower than the CEE average, which makes our citizens more vulnerable in terms of the financial consequences of risk.
This is exactly where we recognised our ESG role — to act and contribute to raising public awareness, while also helping strengthen their financial resilience in the face of various risks.
Photo by A Anđić