Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Responsible Investment
• Community Engagement
• Employee Well-being

Environmental Achievements

• New U.S. headquarters building is LEED compliant and contains charging stations for electric vehicles.
• 100% employee participation in recycling program at Liberty Corner, NJ headquarters.
• Bermuda and New York City offices maintain limited ecological footprints through sustainable building features.

Social Achievements

• Named one of the World’s Best Employers 2019 by Forbes.
• Named among the 2019 Best Places to Work in Insurance by Business Insurance.
• Launched a new Diversity, Equity and Inclusion (DEI) initiative, including listening sessions and the formation of a DEI Council and Employee Resource Groups.
• Conducted a pay equity evaluation across the group.

Governance Achievements

• Board is 78% independent.
• Signatory to the UN Principles for Responsible Investment (UN-PRI).
• Incorporated ESG factors into investment decision-making processes.
• Established a robust Enterprise Risk Management (ERM) program.

Climate Goals & Targets

Environmental Challenges

• Climate change and resulting extreme weather events pose a key risk to the industry.
• Cybersecurity threats.
• Insurance fraud.

Mitigation Strategies

• Incorporating climate and weather risk into underwriting procedures.
• Utilizing parametric risk transfer products, third-party capital, and other hedging tools.
• Implementing a robust cybersecurity program, including regular audits, security enhancements, and employee training.
• Establishing a dedicated Special Investigations Unit (SIU) to combat insurance fraud.

Supply Chain Management

Responsible Procurement

• Ethics Guidelines and Index to Compliance Policies and Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: LEED Silver (New U.S. headquarters), LEED Gold and Energy Star (New York City office)

Awards & Recognition

• Forbes Global 2000’s World’s Best Employers 2019
• Business Insurance’s 2019 Best Places to Work in Insurance

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Employee Well-being
• Community Impact
• Governance

Environmental Achievements

• LEED Silver certification for new U.S. headquarters
• Charging stations for electric vehicles at U.S. headquarters
• Energy-saving amenities in the new U.S. headquarters

Social Achievements

• No layoffs, furloughs, or salary reductions during the COVID-19 pandemic
• Formation of a Diversity, Equity, and Inclusion (DEI) Council
• Creation of new Employee Resource Groups (ERGs) for Black/African American and LGBTQ+ employees
• Expanded Company-wide matching gift program to support social justice charities
• $200,000 donation to NAACP and Equal Justice Initiative
• Eight charitable outreach events involving over 443 employees
• $50,000 donation to charities chosen by employees in a walking challenge
• Civic Engagement Paid Time Off (1 full day per year)

Governance Achievements

• Published inaugural Corporate Responsibility Report (GRI standards) and first SASB report
• Executive leadership focus on DEI efforts

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic

Mitigation Strategies

• Seamless shift to remote work
• Formation of a COVID-19 Task Force
• Detailed reentry approach for offices
• Frequent communication and updates to employees
• Workplace safety measures and guidelines
• Resources for employee mental health and well-being

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Awards & Recognition

• 2020 Best Places to Work in Insurance by Business Insurance

Environmental Metrics

ESG Focus Areas

• Transparent Information & Fair Advice for Customers
• Incorporation of Environmental, Social & Governance Factors in Investment Management
• Policies Designed to Incentivize Responsible Behavior
• Environmental Risk Exposure
• Systemic Risk Management

Environmental Achievements

• Reduced capacity and exposure to regions more susceptible to increased severity of climate change
• Provided significant support to the renewable energy industry through insurance coverage portfolio
• Developed advanced insurance solutions and products related to environmental risks

Social Achievements

• Became a signatory to the UN Principles for Responsible Investment (UN-PRI) in 2019
• Risk Consulting team provides loss prevention solutions across various industries
• Offers numerous products and services that incentivize health, safety and environmentally responsible actions

Governance Achievements

• Established Enterprise Risk Management (ERM) program to identify key risks and establish mitigation strategies
• Executive Risk and Underwriting Committee (ERUC) oversees aspects of risk management
• Emerging Risk Committee identifies and monitors emerging risks and opportunities

Climate Goals & Targets

Environmental Challenges

• Unpredictable catastrophic events, including weather-related and other natural catastrophes, and acts of terrorism
• Difficulty in isolating climate change from natural variability in climate and loss trends
• Inherent imprecision in potential loss projections from catastrophe models

Mitigation Strategies

• Employ various techniques to estimate potential loss from catastrophic events (deterministic and modeled approaches)
• Maintain a diversified business portfolio spread by line and geography
• Employ a tactical approach to managing risk, including utilization of third-party capital and catastrophe bonds

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Weather-related natural catastrophes (hurricanes, earthquakes)

Transition Risks

• Disorderly transition from carbon-intensive industries to green business opportunities

Opportunities

• Expanding risk portfolios to provide protection for renewable energy programs and environmentally sound projects

Reporting Standards

Frameworks Used: SASB, Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD)

Sustainable Products & Innovation

• Insurance and reinsurance protection for renewable energy programs and environmentally sound projects
• Pollution and remediation liability insurance products

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched EverGreen Business Resource Group focusing on sustainability initiatives, including an electronics recycling event.
• Conducted a climate risk analysis of the investment portfolio to understand financed emissions and climate-related risks and opportunities.
• Completed greenhouse gas inventory of Scope 1 and 2 emissions for 2022 from US and international offices.
• Completed greenhouse gas inventory for Scope 3 emissions (business travel, employee commuting, purchased goods and services).

Social Achievements

• 69% of summer interns and 67% of employees hired were diverse by ethnicity or gender.
• 31,200 hours of employee training completed.
• 1 new ERG (The Rising Professionals Group) launched.
• 11 charitable events involving over 450 employees.
• 72,363 meals packed across 10 offices to address global hunger.
• $600,000 donated to charitable organizations.
• 1,350 hours volunteered.

Governance Achievements

• Continued progress on reflecting the Principles for Responsible Investment in the investment portfolio.
• Engaged with MSCI to assess investment portfolio positioning with respect to the transition to a low-carbon economy.
• Utilized MSCI’s Climate Value-at-Risk (VaR) tool to assess climate-related risks and opportunities.

Climate Goals & Targets

Environmental Challenges

• Understanding and managing financed emissions associated with investments.
• Assessing climate-related risks and opportunities in the investment portfolio.

Mitigation Strategies

• Engaged with MSCI to conduct a carbon footprint analysis of the investment portfolio.
• Utilized MSCI’s Climate Value-at-Risk (VaR) tool for forward-looking assessment of climate-related risks and opportunities.
• Developed and implemented strategies to incorporate ESG and climate-related risks and opportunities into core business operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Workforce and Community
• Transparency and Accountability

Environmental Achievements

• Implemented GHG tracking software to support internal monitoring efforts
• Expanded GHG reporting by identifying additional Scope 3 categories
• Achieved an Implied Temperature Rise of 1.3ºC, in line with the Paris Agreement

Social Achievements

• Introduced 3 new Colleague Resource Groups: Jewish Culture, Veterans, and Working Parents and Caregivers
• Implemented rotating chairs for Board committees
• 66% of all new U.S. hires and 57% of all new U.S. hires at the level of Vice President or above were women or members of racial/ethnic minority groups
• Over 50 charitable events held across 16+ office locations
• Over $500,000 donated to charitable organizations
• 1,500+ hours volunteered
• Everest employees completed 50,827 hours of training, development, and DEI courses, averaging 16.4 hours per employee

Governance Achievements

• Formed ESG Working Group to coordinate and collaborate on ESG matters
• 2 of 3 legally mandated Board Committees are Chaired by Women
• 33% of the Board are Women

Climate Goals & Targets

Environmental Challenges

• Market practices in the reinsurance industry are at present inconsistent with reliable calculation of Scope 3 emissions in our underwriting portfolio.
• Insufficient data available to determine Scope 2 GHG emissions of some facilities.

Mitigation Strategies

• Expanded GHG reporting by identifying additional Scope 3 categories
• Estimated Scope 2 GHG emissions for facilities with insufficient data and reported in Scope 3 Category 8

Supply Chain Management

Supplier Audits: Recently acquired a tool to help assess suppliers on ESG criteria.

Responsible Procurement

• Encouraging suppliers to comply with environmental laws and regulations
• Benchmarking vendors against ESG factors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Increased demand for insurance coverage
• Opportunities to engage with policymakers
• Greater opportunities to assist businesses in developing innovative renewable energy technology and green products

Reporting Standards

Frameworks Used: GRI, TCFD

Third-party Assurance: Outside independent consultant

Sustainable Products & Innovation

• Pollution and remediation liability insurance
• Products to support renewable energy technologies

Awards & Recognition

• Insurance Business America 2023 5-Star Construction Award
• Caribbean and Central American Reinsurer of the Year
• MGA/MGU of the Year
• Brazilian Reinsurer of the Year
• Top 50 Talent Acquisition Team award