Palomar Holdings Inc.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Environmental
Social Responsibility
Governance

Environmental Achievements

Eliminated the use of disposable plastic water bottles
Added dual computer monitors to reduce printing
Encouraged employees to work from home to reduce carbon footprint
Used energy-efficient LED and CFL lamps with motion sensors

Social Achievements

Cultivated an inclusive workplace
40% of workforce are women or people of color
50% of board of directors are women or people of color
Created the DICE Council (Diversity, Inclusion, Community Engagement and Equality)
Financial contribution to the Center for Policing Equity
Allocation of $10.0 million of assets to Minority Depository Institutes

Governance Achievements

Adopted Corporate Governance Guidelines
Appointed a lead independent director
83% of the board are independent from management
Established the Environmental, Social and Corporate Governance (ESG) Committee

Climate Goals & Targets

Long-term Goals:

Maintain allocation of depository assets at Minority Depository Institutions at a level at or above $10.0 million

Short-term Goals:

Reduce environmental impact through energy efficiency, water conservation and waste management
Increase the diversity of our workforce
Increase the diversity of our board of directors

Environmental Challenges

COVID-19 pandemic and its impact on employee mental health
Racial, civil, and social unrest

Mitigation Strategies

Created new channels for team member communication
Provided mental health tools and check-ins
Created the DICE Council
Made financial contributions to social justice organizations

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

Hurricanes, floods, fires

Opportunities

Leadership in risk management and disaster response

Reporting Standards

Frameworks Used: UN Global Compact, Principles for Responsible Investment, Principles for Sustainable Insurance

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Climate Change
Social Welfare
Diversity
Governance

Environmental Achievements

Reduced carbon dioxide emissions by 5.2 tons through investment in plastic-free water stations.
Reduced employee commutes by car through a hybrid workforce model (quantification pending).

Social Achievements

Increased workforce diversity: 39% of team members identify as a member of an ethnic minority group (up from 37% in 2020).
Increased Board of Directors diversity: 5 of 7 directors are women or members of an ethnic minority group.
Partnership with Team Rubicon to provide disaster relief and aid.
Maintained $10 million allocation of depository assets at Broadway Federal Bank, a minority-owned bank.

Governance Achievements

Established a standing ESG committee.
Conducted investor surveys to understand ESG priorities.
Adopted policies aligning with industry best practices in ESG.

Climate Goals & Targets

Long-term Goals:

Achieve carbon neutrality (target date not specified).

Medium-term Goals:

Measure and improve the diversity of Palomar’s suppliers.
Disclose new social KPIs including data regarding Palomar’s growing workforce.
Maintain community relationships, including increased investment in Broadway Federal Bank.

Short-term Goals:

Conduct a third-party assessment of the company’s carbon footprint.

Environmental Challenges

Climate change impacts on the frequency and severity of natural disasters.
Need to accurately measure and manage the impact of extreme weather events.
Uncertainty around long-term climate risks.

Mitigation Strategies

Underwriting guidelines and criteria to mitigate risk.
Robust reinsurance program.
Partnership with catastrophe modeling companies.
Hybrid work environment to reduce carbon footprint.
Paperless environment and other energy-saving measures.
Planned third-party assessment of carbon footprint in 2022 and development of a carbon neutrality plan.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Initiative to measure and improve supplier diversity.

Climate-Related Risks & Opportunities

Physical Risks

Increased frequency and severity of weather-related natural disasters.

Transition Risks

Regulatory changes, market shifts towards a low-carbon economy.

Opportunities

Development of climate change-informed products and services.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6768.88 tCO2e/year

Scope 1 Emissions:98.11 tCO2e/year

Scope 2 Emissions:143.71 tCO2e/year

Scope 3 Emissions:6527.06 tCO2e/year

ESG Focus Areas

Climate Change
Workforce Diversity
Enterprise Risk Management
Corporate Governance
Community Resiliency
Supplier Diversity

Environmental Achievements

Completed the first ever third-party analysis of our carbon footprint, addressing Scope 1, 2, and 3 emissions.

Social Achievements

Launched an initiative to measure the diversity of our suppliers.
Achieved a 73% team member satisfaction score (compared to a benchmark average of 62%).
Reduced employee turnover rate to 14% (from 20% in 2021).

Governance Achievements

Adopted new statements on cybersecurity, data privacy, and diversity, equity, and inclusion.
Began a process of regular review of the ESG profile of outside investments.
Disclosed climate footprint consistent with the TCFD framework.
Received approval to amend and restate our Certificate of Incorporation to declassify the Board and remove certain supermajority requirements.

Climate Goals & Targets

Medium-term Goals:

Double green investments, allocating no less than 2% of overall portfolio to green instruments (2023).

Short-term Goals:

Develop a plan to assess and mitigate climate footprint (2023).

Environmental Challenges

Relatively low Scope 1, 2, and 3 emissions, but a need to make further progress in each area.
Need to develop a plan for offsetting carbon footprint.

Mitigation Strategies

Working to reduce footprint through organizational efficiencies and new technologies.
Investigating options for offsetting carbon footprint.
Will disclose mitigation plan in 2023 Sustainability and Citizenship Report.

Supply Chain Management

Responsible Procurement

Engaging with Pivot Global to examine existing supplier program and diversify businesses contracted with.

Climate-Related Risks & Opportunities

Physical Risks

Increased frequency and severity of extreme weather events (hurricanes, floods).

Transition Risks

Regulatory changes, market shifts towards low-carbon economy.

Opportunities

Providing climate change-informed products and services.
Investing in community resilience.

Reporting Standards

Frameworks Used: TCFD, SASB, GRI (committed to in 2023)

Awards & Recognition

San Diego Union-Tribune’s “Top Workplaces” for 2022.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:14362 tCO2e/year

Scope 1 Emissions:97 tCO2e/year

Scope 2 Emissions:52 tCO2e/year

Scope 3 Emissions:14238 tCO2e/year

ESG Focus Areas

Governance
Employee Well-being
Responsible Insurance and Investment
Emissions

Environmental Achievements

Reduced Scope 1 GHG emissions to 97 tCO2e

Social Achievements

100% of workforce received equity awards in 2023
31% of workforce received promotions or transitioned into new roles in 2023
Offers comprehensive benefits package including health, medical, vision insurance, and 401k

Governance Achievements

Amended and restated Certificate of Incorporation to declassify the Board beginning with the 2027 Annual Meeting of Stockholders.