Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Sustainable Development
• Community Support

Environmental Achievements

• Relocated Hong Kong headquarters to a LEED Gold certified building, resulting in approximately 15% greater energy efficiency and a reduction in paper printing.
• Reduced average monthly electricity use in 2023 compared to 2022 (though office size increased).

Social Achievements

• 48% of leadership roles held by women (as of 31 December 2022).
• Supported various CSR initiatives including art competitions for children, supporting local craftsmen, and partnerships with NGOs for youth climate education.
• Implemented a Worker’s Salary Bond to protect construction workers in China from delayed payments.
• Developed critical illness coverage for children with autism in China.

Governance Achievements

• Implemented a “Three Lines of Defence” model for risk mitigation.
• Added “Diversity, Equality, and Inclusion” as a mandatory compliance learning module in 2023.
• Conducted ESG training and seminars drawing on external expertise.
• First Hong Kong-based reinsurer to issue a 144A catastrophe bond in 2022.

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of natural disasters, leading to higher insured losses and a protection gap in emerging markets.
• Rising economic losses from secondary perils (less well-modelled).
• Transition risks associated with the global shift towards a low-carbon economy.
• Legal and reputational risks related to ESG investing and underwriting.

Mitigation Strategies

• Regular monitoring of climate risk at portfolio and operational levels.
• Stress-testing underwriting portfolios for loss impacts due to increasing frequency of secondary perils.
• Refined underwriting guidelines to include coal mining restrictions and new thermal-coal-based power plant construction exclusions (with exceptions).
• Investing in resources to enhance understanding of carbon and climate exposures within invested assets.
• Monitoring regulatory developments and making ESG disclosures to manage legal and reputational risks.
• Developing innovative reinsurance products to address climate risks and support the low-carbon transition.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible sourcing of tea from Yongping, China, emphasizing organic and chemical-free farming practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, secondary perils (thunderstorms, hail, droughts, floods, landslides, wildfires).

Transition Risks

• Decreased demand for carbon-intensive assets, increased demand for green insurance products.

Opportunities

• Development of reinsurance products for renewable energy, electric vehicles, and carbon offsetting.

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, TNFD, UNEP FI Principles for Sustainable Insurance (PSI)

Certifications: LEED Gold (Hong Kong office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1 (No Poverty)
• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Peak Re's business model and CSR initiatives align with these SDGs through poverty reduction, health initiatives, education support, economic growth, responsible sourcing, climate action, and community partnerships.

Sustainable Products & Innovation

• Catastrophe bonds with parametric triggers.
• Reinsurance products for renewable energy adoption.
• Insurance products related to renewable energy and electric vehicles.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decarbonization
• Ageing Population
• ESG Risks and Opportunities Oversight
• Economic Development and ‘Just Transition’ in Emerging Markets

Environmental Achievements

• Relocated Hong Kong headquarters to an energy-efficient building, achieving about 15% greater energy efficiency in operations. Scope 1 operational emissions for Hong Kong office were negligible; Scope 2 emissions estimated at 0.81 tonnes CO2e/FTE.
• Updated environmental and social screening guidelines to exclude direct and facultative reinsurance for new construction of coal mining or thermal coal power plants as well as oil drilling and extraction from the Arctic Basin or oil/tar sands.

Social Achievements

• 45% of leadership roles held by women.
• Mandatory compliance training module on “Diversity, Equality, and Inclusion” included.
• Engaged in CSR activities, including partnerships with NGOs for community projects and employee volunteer work.

Governance Achievements

• Board composition includes a higher percentage of independent non-executive directors than required by the HKIA.
• Board members received ESG-focused training.
• Regular trainings for employees on AML, CTF, anti-bribery and anti-corruption, data protection and sanctions compliance.

Climate Goals & Targets

Environmental Challenges

• Increasing likelihood and severity of physical impacts from climate change.
• Transition to net-zero emissions impacting risk assessment, product offerings, and underwriting practices.
• Ageing demographic presenting challenges for insurers and reinsurers.
• Evolving stakeholder expectations on ESG.
• Closing protection gaps for the emerging middle class in emerging markets.

Mitigation Strategies

• Strict underwriting guidelines and stringent geographic and probable maximum loss (“PML”) requirements to manage natural catastrophe risks.
• Risk mitigation through diversification and securing adequate retrocession cover.
• Expanding resources in catastrophe modeling and analytics.
• Refined underwriting guidelines to exclude facultative exposure for new coal mining construction and new thermal-coal-based power plants, as well as unconventional fossil fuel extraction.
• Developing innovative solutions and products tailored to the elderly and vulnerable populations.
• Robust processes to identify, assess and manage ESG risks and opportunities.
• Supporting economic development in emerging markets through global risk expertise, partnerships, and investment capabilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible sourcing policy for tea procurement from Yongping, China.

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency of extreme weather events
• Long-term environmental changes

Transition Risks

• Technology change risks
• Policy change risks
• Shifts in market supply and demand

Opportunities

• Increased demand for natural catastrophe protection
• New re/insurance opportunities from low-carbon alternatives
• Carbon offset insurance

Reporting Standards

Frameworks Used: UNEP FI Principles for Sustainable Insurance (PSI)

Certifications: WELL Certification - Gold (2024), BEAM Plus Gold (building)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 3: Good health and well-being
• SDG 8: Decent work and economic growth
• SDG 10: Reduced inequalities
• SDG 13: Climate action
• SDG 17: Partnerships for the goals

Peak Re's business is fundamentally aligned to supporting post-disaster financial resilience and promoting inclusive insurance policies.

Sustainable Products & Innovation

• Reinsurance support for renewable energy adoption.
• Participation in natural peril pools.
• Support for microinsurance schemes.

Awards & Recognition

• WELL Certification - Gold (2024)