Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital & Community
• Climate Risk Management
• Responsibility & Transparency

Environmental Achievements

• Reduced GHG emissions intensity by 7.5% across ESRT's commercial portfolio (Metro Center, Stamford, CT)
• Reduced commercial GHG total emissions by 8% despite a 4% increase in commercial energy consumption compared with 2021 (Metro Center, Stamford, CT)
• Underwrote approximately $47 million of net premiums related to certain energy efficiency and low-carbon technology risks.

Social Achievements

• Launched a comprehensive curriculum of structured learning programs for current and future leaders.
• U.S. turnover rates consistently below annual total separation rates for the finance and insurance industry.
• Provided more than $1,280,000 of financial support to communities in 2022.
• Expanded executive mentorship program by almost 70% from 2022 to 2023.

Governance Achievements

• Formalized ESG framework in 2022.
• Established an ESG operating model with a multidisciplinary ESG team.
• Maintained strong emphasis on ethics and compliance, data privacy, and cybersecurity.
• Grew sustainable bond portfolio by more than 20% to $312 million in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate change risks to underwriting, investments, and operations.
• Changes in frequency and/or severity of natural perils.
• Regional variability in peril change.
• Potential for model miss in catastrophe models.
• Increasing frequency of wildfires in the U.S.

Mitigation Strategies

• Qualitative and quantitative climate change risk assessments.
• Catastrophe risk modeling and management.
• Use of peril-specific deductibles or sublimits.
• Nonrenewal of specific policies.
• Re-underwriting of particular portfolio segments.
• Purchase of additional reinsurance protection.
• Limiting investments in municipal bonds in high-risk areas.
• Favoring low-carbon utility investments.
• Business continuity planning.
• Loss control services and education for policyholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Coastal floods
• Wildfires
• Severe convective storms
• Sea-level changes
• Land subsidence
• Riverine and surface-water floods

Transition Risks

• Regulatory changes
• Evolving societal perceptions
• Carbon pricing
• Changes in legislation, regulation, or reporting requirements

Opportunities

• Insuring alternative energy companies
• Supporting the transition to electric vehicles
• Supporting businesses with ESG disclosure requirements
• Supporting sustainable design & construction
• Preserving wetlands
• Underwriting certified green dwellings

Reporting Standards

Frameworks Used: TCFD, SASB

Sustainable Products & Innovation

• Renewable energy insurance
• Energy savings warranties
• Carbon capture and storage insurance
• Green coverage endorsements

Awards & Recognition

• 2022 Platinum Green Lease Leader (Metro Center)

Environmental Metrics

ESG Focus Areas

• Human Capital & Community
• Climate Risk Management
• Responsibility & Transparency

Environmental Achievements

• Increased the number of locations included in Scope 1 and 2 emissions disclosure.
• Two22 building in Minneapolis completed a project to improve energy efficiency, saving over 1.3 million kWh of electricity per year and avoiding almost 500 tons of CO2 annually.
• Underwrote approximately $106 million of net premiums related to certain energy efficiency and low-carbon technology risks, more than doubling the 2022 amount.

Social Achievements

• Continued investing in talent management and developing and enhancing a culture of inclusivity through employee engagement endeavors and the Diversity, Inclusion, and Belonging (“DIB”) committee’s focus on “belonging.”
• U.S. turnover rates consistently below the annual total separation rates for the finance and insurance industry.
• Introduced a comprehensive learning path for managers, focusing on communication, change management, and employee development.
• Provided more than $1,100,000 of financial support to communities in 2023.

Governance Achievements

• Added an eighth strategic-level goal to the cybersecurity program.
• Enhanced data privacy program.
• All reports made through the EthicsLine were reviewed, investigated, and closed, including nine reports submitted in 2023.

Climate Goals & Targets

Environmental Challenges

• Climate change risks to insurance, investments, and operations.
• Potential impacts of physical and transition climate risk on pricing and risk selection, reserving, and strategy for individual lines of business.
• Risks to investment portfolio from oil, gas, and pipeline investments; municipal bonds; and electric utilities.
• Cybersecurity threats and data breaches.

Mitigation Strategies

• Qualitative and quantitative climate change risk assessments.
• Catastrophe risk modeling and management.
• Modifying underwriting activities to manage risks.
• High-quality short-term investments to reduce long-term economic impact.
• Comprehensive business continuity plan.
• Cybersecurity program focused on people, processes, technology, and governance.

Supply Chain Management

Responsible Procurement

• Green procurement of energy-efficient equipment.

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Coastal floods
• Wildfires
• Flooding
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Social inflation
• Changes in legislation, regulation, or reporting requirements

Opportunities

• Underwriting renewable energy projects
• Insuring alternative energy companies
• Supporting the transition to electric vehicles
• Assisting clients with emergency evacuation procedures
• Supporting sustainable design & construction

Reporting Standards

Frameworks Used: SASB, TCFD

Sustainable Products & Innovation

• Renewable energy insurance
• Energy savings warranties
• Carbon capture and storage insurance
• Green coverage endorsements