Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Investment

Environmental Achievements

• Disclosed greenhouse gas emissions for scopes 1, 2, and 3; set targets for reduction for 2021 based on a 2019 baseline year.
• Established a Sustainability Working Group in 2016 to coordinate Argo Group's approach and maintain a Sustainability threat and opportunity assessment.

Social Achievements

• Adopted and published a Board-approved Diversity and Inclusion policy in October 2019 coupled with a new D&I program, overseen by a Diversity & Inclusion Committee.
• Established seven active employee resource groups and completed a Group-wide Employee Engagement survey during 2020.

Governance Achievements

• Implemented a robust Corporate Governance framework, including a Code of Conduct and Business Ethics, and various committees to oversee risk management, compliance, and financial reporting.
• Enhanced sustainability program and communication to stakeholders, including shareholder outreach related to ESG factors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic resulting in significant disruptions in economic activity and financial markets, impacting underwriting results and premium levels.
• Climate change posing financial risks within the property and casualty insurance portfolio.

Mitigation Strategies

• Transitioned employees to a remote working environment, leveraging investments in business contingency planning and digital solutions.
• Developed a COVID-19 response team to monitor efforts around safeguarding employees, supporting business operations, and managing loss exposures.
• Fully integrated Climate Risk into the enterprise risk management framework, defining risk and sub-categories, assigning risk ownership, completing risk and control self-assessments, and establishing and monitoring risk appetites and tolerances.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Changing frequencies and intensities of weather-related perils

Transition Risks

• Changes in asset values, changing energy infrastructure and/or carbon regulation or taxation arrangements

Opportunities

• Producing protection and resilience solutions to clients in the face of climate risk

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 11: Sustainable cities and communities
• SDG 13: Climate action

Argo Group has prioritized these three SDGs in its sustainability program.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Sustainability
• Board Oversight
• Responsible Investment

Environmental Achievements

• 33% reduction in Scope 3 GHG emission rate (metric tons of CO2 per dollar of gross written premium)
• 20% reduction in Scope 2 GHG emission rate (metric tons of CO2 per dollar of gross written premium)
• 26% reduction in facilities footprint due to office closures
• 40% reduction in commuter GHG emissions due to remote work
• Formalized oversight of climate risk within its risk management framework
• Implementation of an internal ESG performance dashboard

Social Achievements

• Establishment of nine employee resource groups (ERGs)
• Implementation of a defined D&I strategy
• Partnership with the Spencer Foundation to offer a diversity scholarship
• Implementation of a consistent, company-wide career and compensation framework to ensure equal pay
• Implementation of three new programs to help employees manage work/life balance (Paid Parental Leave, Paid Family Caregiver Leave, Flexible Workplace Policy)
• 5.4% decrease in turnover among employees who participated in the SHINE onboarding program

Governance Achievements

• Implementation of additional improvement plans to Argo’s risk management strategy following an independent review
• Implementation of a Whistleblowing Policy and Procedure with an Ethics Hotline
• Annual corporate compliance training program for all employees
• Becoming a signatory of the UN Principles for Responsible Investment (PRI)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations and employee well-being
• Climate-related risks (physical and transition risks)
• Need to improve diversity and inclusion within the workforce and industry

Mitigation Strategies

• Transitioning to remote work and hybrid models
• Formalizing climate risk oversight and incorporating it into risk and control assessments
• Developing and implementing a D&I strategy with action plans
• Implementing a consistent, company-wide career and compensation framework

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UN Principles for Responsible Investment (PRI), ISO 14064-1

UN Sustainable Development Goals

• SDG 13: Climate Action
• SDG 11: Sustainable Cities
• SDG 5: Gender Equality

Awards & Recognition

• Corporate Social Responsibility Initiative of the Year: InsuranceERM Annual Awards 2021
• Bill Wharton – 2021 Top 25 D&I Re/insurance Champion: Intelligent Insurer 2021
• Training Top 100: Training Magazine
• Best Advance in Learning Technology Implementation – Bronze: 2020 Brandon Hall Group Excellence in Learning Awards
• Risk Innovation of the Year by a Re/insurer: InsuranceERM Annual Awards 2020
• Jennifer Edwards – 2020 IMCA Rising Star: Insurance Marketing & Communications Association
• Five-Star Excellence Award for Professional Liability: Insurance Business America
• Ian Macartney – 2020 InsurTech Leader, Collaboration: ACORD
• Disruptor of the Year – Loadsure: Insurance Insider Honours (Highly Commended)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Sustainable Cities
• Gender Equality
• Decent Work and Economic Growth

Environmental Achievements

• Achieved greenhouse gas annual targets across Scope 2 and Scope 3 disclosures.
• Continued reduction in GHG emissions since 2019 baseline.

Social Achievements

• Employee Resource Groups (ERGs) remain a core focus of diversity and inclusion programs.
• High employee ratings for a “discrimination-free,” respectful workplace.

Governance Achievements

• MSCI ESG rating increased from “BB” to “AA”.
• Established a Stewardship and Engagement Statement guiding investment strategies.
• Zero breaches involving personal or customer information during 2022.

Climate Goals & Targets

Environmental Challenges

• Uncertainty remains regarding the effect of climate change on historical U.S. hurricane landfall rates.
• Potential climate change scenarios considered within Stress & Scenario Testing Framework.

Mitigation Strategies

• Continued evolution of climate risk management framework using proprietary long-term climate change models.
• Robust avoidance approach for high-risk wildfire zip codes embedded into underwriting strategy.
• Responsible Investment Policy and Stewardship and Engagement Statement to manage transition risk.

Supply Chain Management

Responsible Procurement

• Vendor Management practices and protocols

Climate-Related Risks & Opportunities

Physical Risks

• Changing frequencies and intensities of weather-related perils

Transition Risks

• Changes in asset values, changing energy infrastructure and/or carbon regulation or taxation arrangements

Opportunities

• Producing protection and resilience solutions to clients in the face of climate risk
• Opportunities in renewable energy insurance (hydrogen and battery production)

Reporting Standards

Frameworks Used: TCFD, UN PRI

UN Sustainable Development Goals

• SDG 13: Climate Action
• SDG 11: Sustainable Cities
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth

Argo Group maps the 17 SDGs to sustainability threat and opportunity assessments to identify materiality and prioritize actions.

Awards & Recognition

• Award from Insurance ERM
• Shortlisted for an award from CIR magazine