Climate Change Data

Selective Insurance Group, Inc.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:5,054 mtons CO2e/year (2021)
Scope 1 Emissions:1,784 mtons CO2e/year (2021)
Scope 2 Emissions:3,270 mtons CO2e/year (2021)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Approximately 5 million kWh/year (projected)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Built a 2.9-megawatt DC ground-mount solar photovoltaic facility at headquarters, generating approximately four million kWh of electricity annually.
  • In the process of building a second solar facility to increase annual kWh capacity by approximately one million kWh.
  • Implemented several initiatives at headquarters to lower environmental impact, including enhanced waste management and recycling, repurposing commingled recyclables, elimination of Styrofoam products, recycling and more efficient energy use of electronic equipment, and reducing water usage.

Social Achievements

  • Not disclosed

Governance Achievements

  • Established robust ERM framework including identification and assessment of physical and transition risks due to climate change.
  • Board of Directors oversees Enterprise Risk Management (ERM) process, including climate change risks.
  • Executive Risk Committee (ERC) provides management oversight of ERM function and reviews climate-related risks at least quarterly.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Actively evaluating modifications to existing coverages and increasing product suite to match new areas of insurance coverage demand.
  • Providing insurance capacity to renewable energy production facilities and related construction projects.
Short-term Goals:
  • Continue to reduce carbon emissions relative to the 2019 baseline year.
  • Upgrades to headquarters building management system to reduce natural gas consumption.
  • Transitioning fleet from gas to hybrid vehicles over the next three to five years.
  • Conversion of all headquarters light bulbs to LED.

Environmental Challenges

  • Increased model uncertainty around severe weather events resulting from potentially higher catastrophe loss activity.
  • Potential investment losses from climate-related impacts (physical loss to assets and transition risk related to technology and energy production advances).
  • Insurance market transition risk (increased climate change-related regulations and evolving consumer preferences).
  • Regulatory risk (insurance regulations limiting flexibility in reducing exposure to vulnerable lines of business).
  • Climate change impact on frequency and severity of weather events.
Mitigation Strategies
  • Purchasing significant reinsurance protection and setting retained loss thresholds well below amounts that would cause significant financial stress.
  • Continuously evolving risk modeling and stress thresholds based on scientific and modeling advances.
  • Incorporating modeled catastrophe loss expectations within pricing plans and having underwriting guidelines that reflect catastrophe exposure appetite.
  • Geographically diversifying underwriting portfolio and setting rigorous coastal property exposure guidelines.
  • Conservative approach when investing in commercial and residential real estate products vulnerable to climate change risks.
  • Monitoring exposure to carbon-intensive sectors vulnerable to longer-term transition risks.
  • Incorporating ESG considerations into investment process and working with third-party investment managers to ensure ESG guidelines are incorporated.
  • Not making new direct debt or equity investments in thermal coal enterprises.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • GreenPAC® endorsement allows commercial lines policyholders to repair or replace property damage using environmentally friendly materials.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased frequency and severity of extreme weather events (hurricanes, floods, wildfires).
  • Direct physical loss to assets and infrastructure from catastrophic loss activity.
Transition Risks
  • Investment losses from transition risk related to technology and energy production advances leading to stranded assets in carbon-intensive sectors.
  • Insurance market transition risk due to changing regulations and consumer preferences.
  • Regulatory risk limiting flexibility in reducing exposure to vulnerable lines of business.
Opportunities
  • Developing renewable energy production.
  • Enhancing customer resiliency.
  • Providing product incentives to lower carbon footprint for customers.
  • Developing new insurance products tailored to emerging industries.
  • New investment opportunities in green bonds or energy-transition-related infrastructure.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • GreenPAC® endorsement
  • Enhancing commercial Automobile ElitePAC coverage to include green automobile replacement coverage.

Awards & Recognition

  • Not disclosed