Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change related risks
• Human capital management (diversity and inclusion, training and development, employee engagement)
• Corporate social responsibility (community engagement and corporate philanthropy)

Environmental Achievements

• Calculated Scope 1, Scope 2 and select Scope 3 GHG emissions data; upgraded external review of Scope 1 and Scope 2 from limited assurance to reasonable assurance; published results
• Updated Environmental Policy and Statement on Climate Change
• Donated approximately $2.0 million to charities, including $250,000 to diversity and inclusion-focused philanthropy

Social Achievements

• Expanded the number of employee resource groups (ERGs) to include one for Asians and Pacific Islanders and one for young professionals; sponsored our first ever International Women’s Day Conference
• Meaningfully improved employee engagement score
• Continued to develop HCM objectives and strategies to expand employee training and development by onboarding a talent development professional to expand our in-house training programs

Governance Achievements

• Completed five-year joint New York Department of Financial Services (NYDFS) / Maryland Insurance Administration (MIA) Financial Exam with clean reports from both regulators
• Completed market conduct exam by the California Department of Insurance, concluding with the issuance of a clean report
• Successfully undertook the effort to pass legislation amending Article 69 of the New York Insurance Law to expand the single risk limit for obligations issued by highly rated Organization for Economic Co-operation Development member countries lacking a AA rating from a Nationally Recognized Statistical Ratings Organization

Climate Goals & Targets

Environmental Challenges

• Lower overall volume in primary market (U.S. public finance) than projected due to reduced new issuance from continued interest rate hikes and volatility in fixed-income markets
• Pricing competition in certain segments of the U.S. public finance financial guaranty market

Mitigation Strategies

• Strategic decision fifteen years ago to pursue financial guaranty business in markets other than the U.S. public finance market
• Successful execution of asset management strategy transformation through the Sound Point transaction

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding, wildfires

Transition Risks

• Regulatory changes, market shifts

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14064-3

Third-party Assurance: Independent third party (reasonable assurance for Scope 1 and Scope 2 emissions, limited assurance for Scope 3)