Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Transparency and Integrity
• Risk Management
• Emissions
• Waste and Recycling
• Disaster Response
• Health and Wellbeing
• Sustainable Investment
• New Revenue Streams
• Employee Diversity and Inclusion

Environmental Achievements

• Reduced CO2 emissions from business travel (though specific quantification is not provided, reduction targets were set for 2020)
• Insured Ocean Farm 1, the world’s first sustainable offshore fish farm
• Initiated tracking of energy consumption in selected offices
• Implemented measures to reduce plastic bag usage in offices

Social Achievements

• Launched Skuld Impact Day, a program for employee volunteering
• Strengthened focus on crew welfare and wellbeing in ship survey programs
• Signed the UN Women’s Empowerment Principles
• Improved SHE Index score from 39 to 54 points

Governance Achievements

• Became a signatory of the UN Global Compact
• Established Skuld’s cross-functional sustainability Working Group
• Joined the Global Maritime Forum’s Getting to Zero 2030 Coalition
• Adopted a Code of Conduct
• Implemented AML regulations and training

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Data limitations for comprehensive ESG reporting (especially for energy consumption and emissions outside of Oslo headquarters)
• Challenges in measuring the financial risks of climate change
• Difficulty in distinguishing green from brown investments
• Insufficient sustainability data for rules-based negative screening

Mitigation Strategies

• Intensified efforts to establish climate-change risk measurement
• Expanding data collection for future reporting
• Following UK developments and applying the PRA’s methodology to risk assessment
• Developing a framework for assessing external fund managers’ sustainability efforts
• Integrating SDGs into investment decision-making

Supply Chain Management

Responsible Procurement

• Sustainability requirements when dealing with third-party vendors
• Agreement with Office Management (certified under ISO 14001:2015, Energy Star, Blue Angel, and ECO flower)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Rising sea levels

Transition Risks

• Regulatory changes (e.g., IMO 2020)
• Market shifts towards low-carbon economy

Opportunities

• Growth in sustainable ocean industries (offshore aquaculture, offshore wind, electric ferries)

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Skuld’s internal auditor

UN Sustainable Development Goals

• SDG 3
• SDG 10
• SDG 13
• SDG 14
• SDG 16

Skuld focuses on these SDGs based on their relevance to the marine insurance industry, their impact on Skuld’s customers and employees, and Skuld’s ability to contribute to their realization.

Sustainable Products & Innovation

• Insurance for offshore aquaculture, floating wind farms, and electric ferries

Environmental Metrics

ESG Focus Areas

• Health and Wellbeing
• Risk Management
• Governance, Transparency and Integrity
• Crisis Response
• Decarbonisation
• Waste and Recycling
• Employee Diversity and Inclusion
• Sustainable Investments
• Renewables

Environmental Achievements

• Reduced plastic bag consumption by 20,700 per year
• Increased waste recycling by installing office recycling stations
• Reduced carbon footprint through reduced travel and procurement of greener electricity in Skuld offices
• Ceased insuring extra bunker fuel handling costs from non-compliance with IMO sulphur emissions regulations

Social Achievements

• Developed a risk-based analysis method to reduce shipboard injuries
• Dedicated considerable effort and resources to assist ill, injured, and stranded crew during the pandemic
• Signed the Neptune Declaration on Seafarer Wellbeing and Crew Change
• Provided financial support to employees for ergonomic IT and home-office equipment
• Conducted employee surveys to monitor stress levels and took action on findings
• Improved SHE Index score from 54 in 2020 to 62 in 2021
• Increased the number of women in key and managerial positions to 35%

Governance Achievements

• Established a cross-functional Climate Risk Working Group
• Implemented a holistic Know Your Customer process for all accounts
• Created and rolled out an internal anti-money laundering course
• Launched a comprehensive data protection impact assessment for claims processes
• Completed sustainability training in all departments
• Improved data collection for better and more transparent reporting

Climate Goals & Targets

Environmental Challenges

• Climate change risks affecting Skuld and its members/clients (physical and transition risks)
• Increased reporting requirements related to climate change
• Potential for increased operational expenses due to climate change mitigation measures
• Potential decline in premium income due to clients lagging in sustainability efforts
• Increased complexity in pricing new risks due to transition to alternative fuels

Mitigation Strategies

• Established a Climate Risk Working Group to assess climate change impacts
• Identified action points for data-driven analysis of climate change impacts based on claims data
• Developing approaches to identify, measure, and manage exposure to climate risk
• Supporting the development of sustainable strategies to increase resilience
• Monitoring regulatory and technological developments related to transition risk

Supply Chain Management

Responsible Procurement

• Encouraging and supporting suppliers' sustainability efforts; including suppliers’ ESG activities in procurement decisions

Climate-Related Risks & Opportunities

Physical Risks

• Increased loss potentials due to physical impacts of climate change

Transition Risks

• Substantial adjustment costs for ship owners; disruptions in the shipping industry; increased reporting requirements; changes to building and energy requirements; impacts on the IMO's decarbonisation programme; changes to risk profiles due to alternative fuels

Opportunities

• Development of products and services to support sustainable ocean industries

Reporting Standards

Frameworks Used: GRI (Core Option)

UN Sustainable Development Goals

• SDG 3
• SDG 10
• SDG 13
• SDG 14
• SDG 16

Skuld's initiatives contribute to these goals through various programs and policies related to health and wellbeing, diversity and inclusion, climate action, resource-sensitive behaviours, and anti-corruption measures.

Sustainable Products & Innovation

• Insurance for offshore aquaculture, wind power, and other green technologies

Environmental Metrics

ESG Focus Areas

• Health and wellbeing
• Risk management
• Governance, transparency, and integrity
• Crisis response
• Decarbonisation and emissions
• Waste and recycling
• Employee diversity and inclusion
• Sustainable investments
• Renewables

Environmental Achievements

• Reduced business travel related CO2 emissions by 60% from 2020 to 2021 (primarily due to pandemic restrictions)
• Reduced Skuld’s consumption of plastic bags by 20,700 annually
• Introduced contractual sustainability reporting requirement for wreck removal and similar services

Social Achievements

• Improved employee overall satisfaction score to 5.3 (out of 6) in 2021, up from 5.2 in 2019
• Employee turnover below 4% during 2021/22
• Launched initiatives to strengthen internal control framework to reduce operational risk related to financial crime
• #SkuldWalkingForSeafarers raised awareness and money for seafarers affected by the pandemic, exceeding the goal of 15 million steps

Governance Achievements

• Improved Customer Due Diligence checks and continuous monitoring to identify potential money laundering, terrorism financing, and sanctions risks
• No events of non-compliance with laws or regulations were detected through the internal control framework in 2021/22
• Advanced from ‘Basic’ to the UN Global Compact’s ‘Advanced’ level of reporting

Climate Goals & Targets

Environmental Challenges

• Climate change, environmental degradation, and social risk issues increasing potential for claims and transition risks
• Transition to a carbon-neutral economy creating substantial costs for shipowners and potential industry disruptions
• Pandemic impacts on employee collaboration, availability, and self-management

Mitigation Strategies

• Established a cross-functional Climate Risk Working Group to assess climate change impacts
• Developed and implemented new loss prevention methods and risk mitigating actions to counteract physical risks associated with climate change
• Implemented a flexible hybrid working scheme to improve employee well-being
• Strengthened focus on employee health and wellbeing, and augmented employee satisfaction surveys

Supply Chain Management

Responsible Procurement

• Encouraging and supporting suppliers’ sustainability efforts; including suppliers’ ESG activities in procurement decisions

Climate-Related Risks & Opportunities

Physical Risks

• Increased storm activity driving insured losses

Transition Risks

• Enforcement of new regulations disrupting the shipping industry; increasing reporting requirements; transition to low-emission technologies

Opportunities

• Development of energy-efficient products and services; participation in the green economy

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

UN Sustainable Development Goals

• SDG 3
• SDG 10
• SDG 13
• SDG 16

Contributions are embedded in Skuld’s strategy, business operations, and culture

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Good health and well-being
• Employee diversity and inclusion
• Risk management
• Governance, integrity and transparency

Environmental Achievements

• Reduced Scope 2 CO2 emissions by 19% compared to 2022 baseline (53.1 metric tonnes)
• Repurposed existing furniture in Oslo office reconstruction, preventing 49.8 metric tonnes of CO2 emissions
• First year of Scope 3 disclosure on Skuld’s mutual P&I and H&M portfolios.
• First year of reporting under the Poseidon Principles for Marine Insurance.

Social Achievements

• Inaugural Skuld School for Seafarers with 200 attendees.
• Oslo office reconstructed to facilitate a flexible future way of work.
• Completed a review of our own and several of our suppliers’ impact on human rights.
• Based on an internal leadership survey, Skuld supports a healthy balance between work and personal life and promotes an inclusive and diverse culture (5.4 on a 1-6 scale).
• Staff turnover decreased to 5.1% in 2023.
• 43 recruitment processes completed in 2023, with 26 female and 17 male candidates hired.

Governance Achievements

• Published first report in line with the Norwegian Transparency Act.
• Enhanced risk scoring model for assessments of business partners to match partners and third parties against AML policies more accurately.
• Completed first stage of implementing a Governance Risk and Compliance IT system, compliance and governance within the fields of CSRD, RISK, AML/CTF, Transparency Act and GDPR.
• Annual review of corporate governance documents confirmed compliance with ambitions and applicable legislation.

Climate Goals & Targets

Environmental Challenges

• Achieving net-zero emissions for the maritime industry.
• Managing climate-related risks (changes in water levels, enforcement of environmental regulations, rise of vector-borne diseases).
• Managing risks associated with the transportation of electric vehicles.
• Ensuring data privacy and security.
• Addressing potential negative impacts on human rights and decent working conditions in the supply chain.

Mitigation Strategies

• Established a decarbonisation competence hub.
• Reporting Scope 3 emissions.
• Reporting to the Poseidon Principles for Marine Insurance.
• Continuous monitoring and evaluation of climate change developments.
• Developing a strategy resilient to climate change effects.
• Enhancing due diligence measures and controls to counter financial crime.
• Implementing a new governance risk and compliance system.
• Conducting human rights due diligence assessments of suppliers and business partners.
• Issuing self-assessment questionnaires to high-risk suppliers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring highest ethical standards, integrity and transparency.
• Inclusion of suppliers’ ESG activities in procurement decisions (where appropriate).

Climate-Related Risks & Opportunities

Physical Risks

• Changes in water levels
• Extreme weather events

Transition Risks

• Enforcement of environmental regulations
• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Investment in green energy transition strategies

Reporting Standards

Frameworks Used: GRI, UN Global Compact, Poseidon Principles for Marine Insurance, EU Taxonomy, Norwegian Transparency Act, CSRD, ESRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 10 (Reduced Inequalities)
• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 16 (Peace, Justice and Strong Institutions)

Skuld's initiatives contribute to these goals through various programs and commitments outlined in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed