Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Environmental Sustainability
• Community Investment
• Ethical Business Practices
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions by an unspecified amount through initiatives like using recycled office supplies and encouraging public transport.
• Saved over eight tonnes of CO2 from travellers voluntarily downgrading flights.

Social Achievements

• Launched a Day of Service where nearly 100 US employees volunteered at charities.
• Supported various charities in the UK and US with financial donations and fundraising.
• Implemented a payroll giving scheme in the UK.
• Participated in Lloyd's Community Programme, supporting local schools.
• Improved employee well-being through benefits like private medical insurance, gym subsidies, and stress management programs.

Governance Achievements

• Complied with the UK Corporate Governance Code (with minor exceptions).
• Established a robust risk management framework.
• Implemented a treating customers fairly policy and training program.

Climate Goals & Targets

Environmental Challenges

• Continued competition in the insurance market.
• Macro-economic uncertainty.
• Managing growth while maintaining operational efficiency and employee well-being.
• Maintaining adequate reserves in a challenging claims environment.

Mitigation Strategies

• Diversified portfolio of risks to limit variability of outcomes.
• Investment in innovative products and underwriting teams.
• Standardising business processes and consolidating IT platforms.
• Centralising operations support and outsourcing non-core operations.
• Implementing a robust risk management framework and internal model.
• Prudent reserving philosophy and quarterly peer review process.

Supply Chain Management

Responsible Procurement

• Evaluating environmentally responsible initiatives of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Environmental Metrics

ESG Focus Areas

• Charity
• Community
• Sustainability
• Marketplace
• Health, wellbeing and safety
• Diversity and inclusion

Environmental Achievements

• Used environmentally friendly materials in Farmington office refurbishment and installed LED lighting in Dallas office
• Reduced carbon footprint through increased video conferencing and live-streamed events
• Actively participated in recycling in all offices

Social Achievements

• Donated $319,470 to charities
• Employees participated in 23 community projects in 11 cities
• Employees took 37,370,000 steps during Health & Wellbeing Walk the World campaign
• Held 13 diversity and inclusion forums
• Joined the London Living Wage Foundation

Governance Achievements

• Complied with the provisions set out in the 2012 version of the Financial Reporting Council’s Corporate Governance Code
• Conducted a self-assessment of board effectiveness
• Implemented improvements recommended by Deloitte LLP

Climate Goals & Targets

Environmental Challenges

• Declining premium rates across many lines of business
• Increasing competition for large risks
• Intensifying headwinds affecting short-tail, catastrophe-exposed business
• Over-capitalised reinsurance market

Mitigation Strategies

• Dynamic portfolio management, adjusting exposures to individual lines of business, geographies, and distribution channels
• Scaled back reinsurance treaty business
• Reduced catastrophe-exposed accounts (commercial property, energy)
• Refocused US distribution on a smaller number of brokers
• Continued investment in profitable growth opportunities in the US and specialty lines

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Responsible Culture
• Sustainable World
• Positive Procurement
• Enhancing Livelihoods
• Climate Change
• Inclusion & Diversity
• Compliance & Governance

Environmental Achievements

• 84% reduction in GHG emissions per FTE compared to 2019 baseline (due in part to COVID-19 travel restrictions)
• 64% of reported electricity consumption from renewable sources in London and Dublin

Social Achievements

• Increased People of Colour representation in workforce from 19% to 23%
• Increased female representation in senior leadership roles from 28% to 38%
• Launched a review of employee benefits, resulting in six months fully paid parental leave and other improvements
• Donated over $60,000 to employee-nominated charities
• 735 hours volunteered during Make a Difference month

Governance Achievements

• Established Lloyd's first ESG syndicate (Syndicate 4321)
• Published ESG related policies on website
• Published first disclosures against TCFD guidelines
• Became a signatory to the UN Principles for Sustainable Insurance
• Published Responsible Investment Policy

Climate Goals & Targets

Environmental Challenges

• Embedding ESG decision-making into the underwriting process
• Measuring the transition to net zero within the insurance sector
• Expanding the measurement of environmental KPIs beyond carbon emissions
• Understanding the impact of homeworking on carbon emissions

Mitigation Strategies

• Created Syndicate 4321 to offer capacity to clients with strong ESG performance
• Participating in industry initiatives to develop methodologies for measuring the transition to net zero
• Developing an environmental management system (EMS) in accordance with ISO14001
• Undertaking a study to determine the impact of homeworking on carbon emissions

Supply Chain Management

Responsible Procurement

• Locally sourced and made materials for 22 Bishopsgate office
• Environmental sustainability considerations in procurement
• Quality considerations in procurement

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes (hurricanes, typhoons, windstorms, floods, wildfires)

Transition Risks

• Regulatory changes
• Market shifts
• Pricing risk
• Reserve risk
• Asset risk
• External event risk
• Credit risk
• Regulatory and legal risk
• Liquidity risk
• Strategic risk

Opportunities

• Development of climate-related products
• Supporting clients' transition to net zero

Reporting Standards

Frameworks Used: SASB, TCFD, UN Principles for Sustainable Insurance

Certifications: ISO 14064

Third-party Assurance: Independent third-party auditors

Sustainable Products & Innovation

• Syndicate 4321

Awards & Recognition

• Highly commended recognition in the category for Progressive, Agile & Flexible Working Practices by the Employers’ Network for Equality & Inclusion

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Business
• Human Rights
• Community Investment

Environmental Achievements

• Reduced normalized carbon emissions by 46.8% compared to 2019 baseline (per FTE)
• 29.1% of total in-scope electricity use from renewable sources
• Developed climate risk adjusted pricing for several perils (US Wildfire, Inland Flood, Hurricane, Hail, Tornado, Winterstorm)

Social Achievements

• Achieved 45% women in senior leadership
• Achieved 27% People of Colour representation in the workforce
• Launched three new employee networks (Neurodiversity, Veterans, Young Professionals)
• Employee engagement score of 86%

Governance Achievements

• Section of executive compensation linked to ESG objectives
• Implemented IFRS 17 accounting standard
• Strengthened corporate structure with diverse board appointments

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on underwriting portfolios (particularly property)
• Cybersecurity risks
• Geopolitical uncertainty
• Competition in D&O market
• Data limitations in ESG reporting

Mitigation Strategies

• Five-pillar climate risk framework embedded in underwriting
• Probabilistic modelling framework for catastrophic cyber risk
• Active cycle management (leaning into profitable segments, pulling back from others)
• Enhanced data collection for ESG reporting
• Development of net-zero transition plan

Supply Chain Management

Responsible Procurement

• ESG data used to inform procurement decisions
• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Wildfires
• Inland Flooding
• Severe Convective Storms
• Winter Storms

Transition Risks

• Regulatory changes
• Market shifts
• Greenwashing claims

Opportunities

• Underwriting renewable energy projects
• Developing climate-related insurance products

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Parametric property underwriting products

Awards & Recognition

• Gracechurch award for claims excellence (8th consecutive year)