Climate Change Data

R&Q Insurance Holdings Ltd

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:553.13 tCO2e/year (2022)
Scope 2 Emissions:209.00 tCO2e/year (2022)
Scope 3 Emissions:344.13 tCO2e/year (2022) (Business travel only)

ESG Focus Areas

  • GHG emissions reduction
  • Net-zero strategy implications
  • Employee engagement
  • Purpose and culture
  • Employee wellbeing
  • Business ethics and governance
  • Transparency and stakeholder engagement
  • Physical impacts of climate change
  • Diversity and inclusion
  • Systemic risk management

Environmental Achievements

  • 5% reduction in Scopes 1 and 2 emissions year-on-year, despite the re-opening of the New York office
  • Initial voluntary TCFD climate change risk disclosure

Social Achievements

  • Launched R&Q’s purpose and values
  • Expanded talent mix across the organisation
  • Improved collaboration across lines of business and geographies
  • Enhanced community engagement (donations to various charities)
  • Introduced a Voluntary Time Off policy for employee volunteering

Governance Achievements

  • Developed an ESG Framework, aligned to Lloyd’s and UN Principles for Sustainable Insurance
  • Established an ESG Working Committee
  • Became a signatory to the UN PSI
  • Appointed Jeff Hayman as Independent Non-Executive Chair

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (target year not specified)

Environmental Challenges

  • Continued volatility and adverse development in older legacy books
  • Shareholder activism
  • Adverse reserve development in R&Q Legacy’s core reserve portfolios ($32 million)
  • Softer conditions impacting the legacy market
  • Unexpected adverse development in R&Q Legacy, requiring greater collateral
  • Unexpected one-off historic legal matters associated with older legacy transactions and discontinued programs ($28 million)
Mitigation Strategies
  • Strategic separation of Accredited and R&Q Legacy businesses
  • Raising $50 million of preferred equity from Scopia Capital
  • Disciplined approach to pricing in legacy market
  • Exploring solutions to reduce volatility from pre-Gibson Re transactions
  • Investing in operational improvements ($20-25 million)
  • Implementing automation tools to reduce costs
  • Strengthening risk management and governance practices
  • Improving reporting, risk management, governance and compliance

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Catastrophic hurricane events
  • Rising sea levels

Reporting Standards

Frameworks Used: TCFD, UN Principles for Sustainable Insurance