Climate Change Data

Environmental Metrics

ESG Focus Areas

• Charitable Giving
• Customer Service
• Employee Wellbeing
• Climate Change
• Risk Management
• Diversity & Inclusion

Environmental Achievements

• Reduced carbon emissions significantly from 1426 tonnes in 2019 to 526 tonnes in 2020, primarily due to reduced business travel during the pandemic. Sourcing over 92% of electricity from renewable sources (up from 87% in 2019).

Social Achievements

• Donated over £2.7 million to good causes (in addition to over £23 million from Allchurches Trust). Launched Movement for Good awards, giving £1 million to 500 charities.
• Maintained 98% customer satisfaction.
• Implemented measures to support employees during the pandemic, including remote working and wellbeing initiatives. Over 32% of senior management roles globally are filled by women.

Governance Achievements

• Continued to comply with the 2018 UK Corporate Governance Code (voluntarily).
• Strengthened risk management framework and processes.
• Improved gender pay gap.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting financial performance (loss before tax of £15.7m), investment markets, and business operations.
• FCA business interruption test case.
• Increased Physical and Sexual Abuse claims in Australia.
• Competitive market conditions, particularly in the education sector.
• Climate change risks (transition and physical).

Mitigation Strategies

• Implemented a series of measures to support customers and partners during the pandemic.
• Successfully defended against the FCA business interruption test case.
• Strengthened reserves for Physical and Sexual Abuse claims.
• Maintained strong underwriting discipline and focused on profitable growth.
• Integrated climate risk into investment policies and disclosed approach to scenario analysis.

Supply Chain Management

Responsible Procurement

• Payment Practices and Performance Reporting (72% of suppliers paid within 30 days).

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events

Transition Risks

• Changes in investment portfolio

Reporting Standards

Frameworks Used: Companies Act 2006, IFRS, ClimateWise (aligned with TCFD)

Third-party Assurance: PricewaterhouseCoopers LLP

Awards & Recognition

• Fairer Finance #1 for Home Insurance (11th consecutive year)
• Moneyfacts Best Ethical Investment Provider (12th consecutive year)
• Insurance Post Claims & Fraud Awards
• Drum Roses Creative Awards
• Canada’s Top 100 Employers for Young People

Environmental Metrics

ESG Focus Areas

• Charitable Giving
• Climate Change
• Employee Wellbeing
• Responsible Investment

Environmental Achievements

• Plan to reach net zero carbon emissions by 2040
• Ambition to wipe out historic direct carbon impact by 2030
• New head office built to ‘very good’ BREEAM standards
• Investment in Smart Properties proposition using cutting-edge technology to protect heritage properties

Social Achievements

• Gave over £100m to good causes
• Awarded Best Companies' 2-star accreditation for outstanding employee engagement
• Record number of external awards recognizing the Group as a trusted and specialist financial services organization
• Pledged to triple-match employee giving to Ukraine appeals

Governance Achievements

• Strong governance driving the embedding of an Enterprise-Wide Risk Management Framework
• Formal review of key strategic risks by the Group Risk Committee
• Continued investment in systems and technology to improve broker and customer experience

Climate Goals & Targets

Environmental Challenges

• Adverse weather events impacting underwriting profit
• Strengthening of reserves in Australian business due to increase in PSA cases
• Competitive trading conditions
• Inflationary pressures
• Covid-19 uncertainty
• Potential for more frequent and intense weather events due to climate change
• Increased market volatility due to the conflict in Ukraine
• Cyber risk
• Managing claims for physical and sexual abuse (PSA)

Mitigation Strategies

• Robust underwriting performance
• Strengthening of reserves
• Focus on profitable growth opportunities
• Targeted rate increases
• Strong retention
• Investment in technology platforms
• Long-term view of risk
• Strong capital position
• Diversified portfolio of assets
• Ongoing staff training
• Customer charters
• Conduct Risk Reporting
• Investment in IT infrastructure
• Change Board and change governance processes
• Recovery and resilience framework
• Group Data Governance and Management Committee
• Close monitoring of regulatory developments
• Values-led approach to ensure customer-centric outcomes
• Use of derivatives to mitigate risks
• Asset-liability duration matching principles
• Robust processes to manage liquidity risk

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Smart Properties proposition

Awards & Recognition

• Best Companies' 2-star accreditation
• UK’s most trusted home insurer (14th consecutive time)
• Top Employers for Young People (9th consecutive year)
• Digital Insurance Innovation of the Year Award
• Best Ethical Investment Provider (13th time)

Environmental Metrics

ESG Focus Areas

• Charitable Giving
• Climate Change
• Diversity & Inclusion
• Employee Wellbeing
• Responsible Investment

Environmental Achievements

• Reduced Group equity investment footprint by 82.95% compared to benchmark.
• Net Zero commitment by 2023 for direct impact, 2040 for the Group
• Self-generated 92,631 kWh of energy, equivalent to 18 tonnes of carbon.

Social Achievements

• Donated £22.7m to charitable causes (£20m to Benefact Trust and £2.7m directly).
• Achieved 98% UK overall customer satisfaction.
• Movement for Good Awards gave over £1m to charitable causes.
• Launched 'MyGiving' employee giving scheme.
• Retained Best Companies two-star status, demonstrating outstanding employee engagement.

Governance Achievements

• Launched Benefact Group brand.
• Implemented new values, culture and behaviour model.
• Completed migration of church policies and associated claims handling.
• Successful implementation of product governance, fair value and pricing practice framework aligned with new FCA Regulations.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment with investment losses due to falls in global markets.
• Cost-of-living crisis impacting charity and church customers.
• Adverse flooding and freeze events across territories.
• Unusually large claims in the UK.
• Increased frequency and severity of weather events in Australia and Canada.
• High level of catastrophe claims in Australia.
• Strengthening of prior year casualty reserves in Australia.
• Adverse development on prior year claims in Canada.

Mitigation Strategies

• Strong capital position and liquidity to withstand short-term volatility.
• Established resources to help charity and church customers raise funds.
• Strengthened reserves for latent claims.
• Focus on profitable growth opportunities.
• Disciplined underwriting and pricing.
• Targeted rate increases.
• Investment in technology platforms and colleagues.
• Responsible and sustainable investment approach minimizing exposure to physical and transition risks.

Supply Chain Management

Supplier Audits: 60% of most material suppliers registered with financial services purchasing scheme.

Responsible Procurement

• Robust risk management
• Employee Code of Conduct
• Employee regulatory training
• Compliance with Modern Slavery Act 2015 and Payment Practices and Performance regulations

Climate-Related Risks & Opportunities

Physical Risks

• Increased river flooding
• Coastal flooding/storm surge
• Flash flooding
• Wildfires
• Hurricanes

Transition Risks

• Regulatory changes (carbon taxes)
• Technological disruption
• Changes to consumer expectations and behaviour

Opportunities

• Greater resource efficiency
• Helping customers manage climate risk
• Investing in low-carbon solutions

Reporting Standards

Frameworks Used: TCFD, ClimateWise

Third-party Assurance: PricewaterhouseCoopers LLP

Sustainable Products & Innovation

• Three new EdenTree funds focused on sustainable solutions and green infrastructure.

Awards & Recognition

• Best Ethical Investment Provider (EdenTree)
• #1 for Home Insurance (Ecclesiastical UK)
• Risk Management Specialist Company of the Year (Ecclesiastical UK)
• Canada Top Employer for Young People (Ecclesiastical Canada)
• Toronto’s Top Employer (Ecclesiastical Canada)
• Excellence in Claims Service (Ecclesiastical Canada)
• Insurance Age Broker Award for Marketing and Customer Engagement (SEIB)
• NatWest Local Hero Mortgage Award (Ecclesiastical Financial Advisory Services)

Environmental Metrics

ESG Focus Areas

• Climate change
• Charitable giving
• Diversity, equity and inclusion
• Colleague wellbeing

Environmental Achievements

• Achieved net zero for direct impact (scope 1 and 2) emissions

Social Achievements

• Benefact Group reached the milestone of giving more than £200m to good causes since 2014
• Ecclesiastical UK was named Specialist Insurance Company of the Year at the British Insurance Awards and retained its top spot in the Fairer Finance Home Insurance league table
• Ecclesiastical Canada was named as P&C Insurance Company of the Year, as well as one of Greater Toronto’s Top Employers
• Ecclesiastical UK ahead of all other UK insurers for claims service for a third year
• Benefact Group sustained a two-star ‘outstanding’ rating, plus the UK and overseas businesses achieved three-star ‘world class’ status in employee engagement surveys.

Governance Achievements

• Continued to focus on the management of regulatory change and meeting Consumer Duty requirements
• Refreshed Board Diversity Policy

Climate Goals & Targets

Environmental Challenges

• Rising global tensions
• Escalating climate concerns
• Ongoing economic hardship
• Largest single loss in the UK with the devastating fire at St Mark’s Church in London
• Adverse development of prior year casualty liability and weather-related claims
• Increased competitiveness in some markets
• Prior year strengthening in the public liability portfolio in Australia
• Continued high cost of living pressures

Mitigation Strategies

• Strong risk management framework and solvency position
• Disciplined underwriting
• Robust pricing process
• Comprehensive reinsurance programme
• Long-term view of reinsurance relationships
• Strong credit control processes
• ESG overlay on the investment strategy
• Programme of work to fully analyse the impact of climate change and develop appropriate risk management responses
• Investment in IT infrastructure
• Ongoing information security training and awareness programme
• Appropriate strengthening of expertise to meet the volume of change
• Focus on serving customers and ensuring fair treatment and clear communication
• Focus on a range of Net Zero targets – including committing to Net Zero for all emissions across the entire Group by 2040

Supply Chain Management

Responsible Procurement

• Enhanced approach to managing outsourcing and third parties
• Refreshed Modern Slavery Statement

Climate-Related Risks & Opportunities

Physical Risks

• Flood risk
• Other weather-related risk factors

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: TCFD, ClimateWise

Certifications: ISO 14064-3:2019

Third-party Assurance: Independently verified

Awards & Recognition

• Specialist Insurance Company of the Year
• Top spot in the Fairer Finance Home Insurance league table
• P&C Insurance Company of the Year
• One of Greater Toronto’s Top Employers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Investment
• Heritage Preservation

Environmental Achievements

• Main sponsor of the Green Church Awards, recognizing churches' environmental efforts.
• Supported Worcester Cathedral's restoration after storm damage, incorporating sustainability considerations.
• Benefact Trust (Ecclesiastical's charitable owner) pledged £1.5m to support 60 Church of England churches reaching net zero by 2025.
• In 2023, 40% of Benefact Trust’s Building Improvement Grants were awarded to environmentally sustainable building work.

Social Achievements

• Supported the Cathedrals' Workshop Fellowship (CWF) program, preserving specialist skills.
• Provided Church Support Managers (Joseph and Heather) to assist churches with various needs, including risk management and fundraising.
• Launched 'Beyond Funding' podcast to support churches and charities on their fundraising journey and discuss social issues.
• Gave away more than £500,000 through the Trust130 scheme, supporting various church projects.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on churches (flooding, storm damage, freeze-thaw damage).
• Funding challenges for rural churches due to lack of internet connectivity and bank closures.
• Lack of fundraising plans in many churches.

Mitigation Strategies

• Sponsoring Green Church Awards to raise awareness and inspire action.
• Providing risk management advice and resources to help churches mitigate risks.
• Launching church fundraising hub with tools and advice.
• Supporting churches in embracing digital donations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing red sandstone from Hollington quarry for Worcester Cathedral restoration.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storm damage
• Freeze-thaw damage

Transition Risks

• Not disclosed

Opportunities

• Implementing energy-efficient measures in churches.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 11 (Sustainable Cities and Communities)

Supporting churches in reducing their carbon footprint, promoting sustainable building practices, and engaging with their communities on environmental issues.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed