Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Governance
• Social Responsibility

Environmental Achievements

• Achieved carbon neutrality in its first year of operation through a combination of sound business practices and carbon offsets.
• Established an independent ESG Committee and a Climate Working Group.
• Embedded ESG principles in policies, procedures, strategies, and plans across the business.

Social Achievements

• Grew from 12 to 41 employees.
• Established the Conduit Foundation, a registered charity supporting environmental causes.
• Active participation in the Sustainable Markets Initiative and the Climate Risk Committee of the Association of Bermuda Insurers and Reinsurers.

Governance Achievements

• Established an independent ESG Committee chaired by an independent chairman.
• Embedded ESG principles in policies, procedures, strategies, and plans across the business.
• Executive Chairman received ESG Insurer: Lifetime Achievement Award.

Climate Goals & Targets

Environmental Challenges

• Measuring and managing climate-related risks across different business segments (property, casualty, specialty).
• Improving data quality for casualty lines to better understand climate-driven disaster scenarios.
• Limited renewable energy options in Bermuda.

Mitigation Strategies

• Purchased carbon credits to offset estimated emissions for the first five years of operation.
• Developed a pilot project to improve data quality for casualty lines.
• Exploring opportunities to reduce the company's environmental footprint and investigating renewable energy options.

Supply Chain Management

Responsible Procurement

• ESG criteria included in supplier selection processes.
• Requirement for suppliers to share ESG credentials.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of major windstorms.
• Increased frequency of unmodeled natural catastrophes.
• Occurrence of multiple mega-storms in one year.

Transition Risks

• Uncertain future of oil and gas.
• Potential for new environmental liabilities.
• Risks associated with public disclosure on ESG matters.

Opportunities

• Increased demand for reinsurance due to climate change.
• Opportunities to develop new products and coverages to address climate-related risks.

Reporting Standards

Frameworks Used: ClimateWise

Awards & Recognition

• Executive Chairman received ESG Insurer: Lifetime Achievement Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social Responsibility

Environmental Achievements

• Achieved carbon neutral operations from day one through a combination of sound business practices and carbon offsets.
• Became a member of the UNEP FI Principles for Sustainable Insurance
• Became an inaugural signatory to the Sustainable Markets Initiative: Global Pledge for Sustainable Supply Chains
• Became a Beyond Plastics (Bermuda) Champion
• Updated underwriting and investment policies to explicitly address ESG considerations.
• Expanded Chief Risk Officer’s role to Chief Risk and Sustainability Officer.

Social Achievements

• Established an independent ESG Committee.
• Expanded Chief Risk Officer’s role to include sustainability.
• Supported a variety of environmental causes through the Conduit Foundation.
• Sponsored Bermuda Climate Summit and Bermuda Youth Climate Summit.
• Conducted first employee engagement survey.

Governance Achievements

• Established an independent ESG Committee chaired by an independent chairman.
• Incorporated ESG related metrics in employee performance scorecards.
• Approved specific ESG driven criteria for investments, including restrictions on certain industries.

Climate Goals & Targets

Environmental Challenges

• Lack of clear guidance on calculating Scope 3 emissions related to treaty reinsurance.
• Increasing frequency and severity of climate-related events impacting underwriting.
• Data quality issues for casualty lines.
• Balancing environmental and social concerns with shareholder returns.

Mitigation Strategies

• Following UN-convened Net-Zero Insurance Alliance (NZIA) protocol for GHG emissions calculations.
• Increasing exposure to weather-related events while maintaining a balanced portfolio.
• Improving casualty data quality using an in-house tool.
• Advocating for unbundling of coverages to match premium to risk.
• Implementing specific ESG driven criteria for investments.

Supply Chain Management

Supplier Audits: 17 suppliers assessed (51% of total spend)

Responsible Procurement

• ESG criteria included in vendor selection processes.
• Requirement for suppliers to share ESG credentials.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of major windstorms.
• Increased frequency of unmodeled natural catastrophes.
• Occurrence of multiple mega-storms in one year.

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in demand for climate-related insurance products.
• Development of new products and partnerships to support climate mitigation and adaptation.

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• ESG Insurer: Lifetime Achievement Award (Executive Chairman)
• Beyond Plastics (Bermuda) Corporate Champion

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Community Engagement
• Governance
• Employee Well-being

Environmental Achievements

• Purchased 3,600t of carbon offsets to offset estimated emissions.
• Launched interest-free green loans for employees to purchase electric vehicles or solar panels; over 10% of eligible staff applied.
• Organized a company-wide park cleanup removing approximately 1,050 pounds of litter.
• Increased 'green revenue' (reinsurance revenue related to natural perils and renewables) to $204.6m (84% increase from 2022).

Social Achievements

• Established a permanent volunteering position with Meals on Wheels, with two staff members volunteering weekly.
• Partnered with Big Brothers Big Sisters of Bermuda to provide mentoring.
• Allocated one day of paid time off per year for employee volunteering.
• Organized the Gala of Giving, raising over $340,000 for local charities.
• Provided seven summer internships.
• Awarded the first Conduit Foundation education scholarship.

Governance Achievements

• Expanded Chief Risk Officer’s role to encompass sustainability.
• Added an independent non-executive director to the ESG Committee.
• KPMG provided limited assurance over greenhouse gas emissions disclosures.

Climate Goals & Targets

Environmental Challenges

• Limited availability of renewable energy infrastructure in Bermuda.
• Difficulty in measuring and managing climate-related risks in the reinsurance business.
• Data limitations in assessing Scope 3 emissions and ESG impact of investments and underwriting portfolio.

Mitigation Strategies

• Implemented interest-free green loans to encourage employee adoption of sustainable practices.
• Integrated climate-related risks into the wider risk management framework.
• Collaborated with industry bodies and stakeholders to improve data availability and reporting standards.
• Engaged KPMG for limited assurance on GHG emissions.

Supply Chain Management

Supplier Audits: Calculated emissions for 19 suppliers (49% of total spend) using disclosed data; estimated emissions for remaining suppliers.

Responsible Procurement

• ESG questions incorporated into outsourcing due diligence process.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events in Bermuda.

Transition Risks

• Regulatory changes, market shifts related to climate change.

Opportunities

• Growth in demand for reinsurance related to natural catastrophes and renewable energy.

Reporting Standards

Frameworks Used: GRI, TCFD, ClimateWise, UNPSI

Third-party Assurance: KPMG Audit Limited

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Support for environmental charities, carbon offsetting, and green initiatives.