Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Governance
• Environment (Energy)
• Human Rights (UN Global Compact signatory)

Environmental Achievements

• Reduced power consumption in Kenya facilities by 72,358 kWh, resulting in a 7% saving in energy costs (KShs. 5.4 million savings).

Social Achievements

• Live Free painting competition awarding 33 pupils full secondary school scholarships.
• Partnerships for medical initiatives impacting needy children and young adults (eye screening, medication, spectacles, ear surgeries, prosthetic limbs).
• Renovation of classrooms and cloakrooms in 5 Tanzanian schools; provision of 2 teacher houses in Bukoba.
• Jubilee Insurance Children’s Fund.

Governance Achievements

• Recertification under ISO 9001:2015 standard.
• Enlisted as a signatory to the UN Global Compact.
• Implementation of “The Blue Company” concept to encourage a corruption-free environment.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the economy due to political uncertainty in Kenya.
• Unclear government policy in other regions.
• Weak agriculture output due to drought.
• Tightening private sector credit conditions.
• Lower returns on fixed income securities.
• Weak risk pricing by industry participants.
• Severe rate cutting and underwriting losses by competitors.
• High intermediary commissions.
• Highly fragmented distribution system.
• High levels of risk and fraud.
• Scarcity of qualified human resources.
• Increasing competition.

Mitigation Strategies

• Improved risk selection and pricing.
• Investment in systems and control enhancements.
• Exiting loss-making schemes.
• Initiatives to reduce costs and improve efficiency in medical insurance (systems review, IT controls, engaging provider partners, electronic claims transmission, biometric cards, JubiCare mobile app).
• Educating medical practitioners and members on generic drugs.
• Building stronger distribution channels in Uganda and Tanzania.
• Working with insurance regulators on regulations (credit control, reinsurance, Bancassurance, capital adequacy).
• Maintaining high capital adequacy ratios.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001:2015

Awards & Recognition

• 18 awards in total (details on page 112)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved Energy Efficiency Index (EUI) to 248.76 kWh/m2/year
• Reduced annual energy consumption of Jubilee Centre by 8% in 2019

Social Achievements

• Launched Mum’s Club, a wellness initiative for mothers
• Ran the 2nd edition of the Live Free Painting Competition in primary schools across Uganda
• Various community investment projects such as school renovations, ear and eye operations, and support for Maasai Wilderness Conservation Trust

Governance Achievements

• Adopted the Capital Markets Authority Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015
• Established five standing committees (Audit & Compliance, Nominating and Human Resource, Finance, Information Technology, and Property)
• Implemented a Whistle Blowing Policy

Climate Goals & Targets

Environmental Challenges

• Economic slowdown in East Africa affecting insurance claims and underwriting costs
• Intense price competition in the Kenyan insurance market
• Significant losses in the Kenyan General insurance industry
• Highly fragmented distribution system in the insurance industry
• High levels of risk and fraud in the insurance industry

Mitigation Strategies

• Focused on building sustainable insurance and asset management business based on sound underwriting, innovation and prudent risk selection
• Strengthened reserves, enhanced senior management team, changed underwriting and claims management practices, improved controls to reduce fraud, and reduced expenses to increase efficiency in Kenya
• Introduced J-Inue, a fully digital insurance product
• Partnered with telemedicine providers
• Developed and digitized Maisha FITI, a wellness initiative
• Championed reduced cost of drugs by promoting generic medications
• Insurance regulators working with the industry to introduce regulations that allow greater clarity in areas such as credit control, reinsurance, bancassurance and capital adequacy supervision

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 8 of the 17 SDGs (details on pages 29-33)

Sustainable Products & Innovation

• J-Inue, a fully digital insurance product

Awards & Recognition

• 16 awards in total (details listed on page 133 of the report)

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Economic Development
• Youth Employment
• Workforce Diversity
• Wellness
• Community Investment
• Corporate Social Responsibility

Environmental Achievements

• Annual energy consumption of Jubilee Centre in 2020 declined by 43% to 412,912 kWh
• Energy Efficiency Index (EUI) maintained at 248.76 kWh/m2/year

Social Achievements

• 91% of employees contributed one day of their salary to the Jubilee Children’s Fund, raising a total of Kes 24.6 million for charitable projects
• Partnership with telemedicine providers, offering free service to members during the COVID-19 crisis
• Development of digital platform for online claim submissions
• Tailored education, mass vaccinations, and preventive health interventions for expectant mothers, senior citizens, and those with chronic illnesses
• Mask donations to various hospitals and schools in Kenya and Uganda
• Participation in the NMB Bima Marathon in Tanzania, raising TZS 100 million for Muhimbili National Hospital
• Volunteering in Mauritius to create sea barriers to stop fuel leakage
• Donation of face shields to the Mauritius Police Force

Governance Achievements

• Attained a leadership ranking in the Capital Markets Authority (CMA) assessment of corporate governance practices
• Implementation of a comprehensive induction program for new board members
• Establishment of five standing committees (Audit & Compliance, Nominating & Human Resource, Finance, Information Technology, and Property) with clearly defined mandates

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on businesses and retail clients, reducing economic activity and affecting corporate and personal incomes
• Intense price competition in the Kenyan medical insurance market
• Reorganization of the Kenya general insurance entity to shed loss-making schemes
• Unsustainable level of underwriting loss in the Kenyan general insurance industry
• Highly fragmented distribution system, high levels of risk, continued incidence of fraud, scarcity of qualified human resources, and increasing competition in regional insurance markets
• Challenges in enforcing premium payment before cover in Uganda and Tanzania
• Delayed claim payments due to intermediaries failing to forward collected premiums to insurance companies

Mitigation Strategies

• Focus on service and efficiency to sustain underwriting margins in Kenya
• Continued focus on business quality and sustainability in Kenya
• Strategic partnership with Allianz Group to leverage global expertise and capacity
• Establishment of stand-alone medical insurance companies in Uganda and Tanzania
• Initiatives to improve efficiency and deliver on service charter promises
• Development of digital platform and online claim submissions
• Various initiatives revolving around technology, business processes, technical provisions, and underwriting discipline in Kenya

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Capital Markets Authority (CMA) Code of Corporate Governance Practices

Third-party Assurance: Scribe Services Limited

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Employee Welfare
• Customer Engagement
• Community Development
• Data Protection
• Cyber Security

Environmental Achievements

• Substantial investment in refurbishing the new office building in Upper Hill, Nairobi, Kenya into a green building with ‘Edge Certification’
• Scope 2 Green House Gas emissions reduced by 48% in 2023 due to the installation of LED lighting in 2022 and changes in computation factors.
• Over 200 staff adopted a desk plant to raise environmental awareness.
• 400 trees planted at Green Acorn Nursery School in Nairobi, Kenya.
• Initiated plastic waste segregation in Kenyan offices.

Social Achievements

• Launched MaishaFiTi wellness app with 599 enrollments by year-end.
• Improved Employee Net Promoter Score (e-NPS) from +3 to +24.
• Sponsored 83 children in secondary education.
• Provided free medical services and medication to 1,700 individuals in Nakuru County.
• 10 children received prosthetic limbs.
• 20 children underwent free ear surgeries.

Governance Achievements

• Implemented fundamental measures around sound operational processes and controls, data privacy and digital ethics, a safe cyber environment, and access to high-quality sustainability data.
• Maintained Leadership overall weighted score in CMA assessment.
• 109 suspected fraud cases reported in Kenya, with 3 individuals formally charged in court and 4 cases resolved out of court.
• Implemented enhanced fraud policy, quarterly webinars, and an international whistle-blowing platform.

Climate Goals & Targets

Environmental Challenges

• Intense competition and undercutting in the General Insurance and medical insurance segments.
• Rise in inflation leading to increased claim costs and reduced spending power.
• Rising costs of doing business (IFRS 17 implementation and increased taxation).
• Negative impact of NSE 20 share index decrease on fair value gains.
• Data collection limitations across subsidiaries for certain social metrics.

Mitigation Strategies

• Strategy to reduce exposure in the General Insurance segment.
• Tight expense control measures resulting in Kes 380 Mn savings.
• Technology adoption and improved return on investment.
• Prudent strategy of holding a broadly diversified and conservative investment portfolio.
• Implementing measures to collect missing data in future reporting.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

JHL's initiatives contribute to these goals through various programs related to education, health, environmental protection, and economic empowerment.

Sustainable Products & Innovation

• MaishaFiTi wellness app
• Green building design for new HQ

Awards & Recognition

• FKE Employer of the Year Award
• Insurance Company of Year by Banking Awards Tanzanian
• Best Life Insurance Company at the People’s Choice Quality Awards 2023