Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 3
• 8
• 9
• 13
• 16
• 17

The Group is acutely aware of the key role it plays as a company in ensuring the successful implementation of this initiative and prioritises six of the 17 SDGs

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability

Social Achievements

• Monitored the workforce's general remuneration structure and the outcome of the 2021 work environment survey.

Governance Achievements

• Approved the Company's Corporate Governance Policy.
• Reported favorably on the 2021 annual corporate governance and the 2021 directors' remuneration reports.
• Monitored the degree of compliance with the goals set out in the Sustainability Plan.
• Implemented a Selection and Succession Policy for Board members to ensure diversity of opinions, perspectives, skills, experiences and backgrounds.
• Amended the executive director's contract to include good governance clauses (malus and clawback clauses).

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced emissions by 58% over the past two years (Scopes 1 and 2)

Social Achievements

• Developed 'Respira' policy for electric cars to promote decarbonization of the car fleet
• Partnerships to promote energy efficiency in homes

Governance Achievements

• Linked part of the Management Committee's variable remuneration to sustainability targets
• ESG risk assessment to identify and manage environmental, social, and governance risks

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Respira policy for electric cars

Environmental Metrics

ESG Focus Areas

• Governance
• Sustainability

Governance Achievements

• Updated remuneration policy to comply with Ley 5/2021 and best corporate governance practices.
• Inclusion of sustainability risks in risk management.
• Mention of equal pay for equal work in the equality and diversity principle.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced Scope 1 emissions by 22% in 2022 compared to 2021 (470.95 tonCO2e)
• Reduced Scope 2 emissions by 66% in 2022 compared to 2021 (395.96 tonCO2e)
• Achieved a 50% reduction in combined Scope 1 and 2 emissions in 2022 compared to 2021.
• 72% of electricity consumed is of renewable origin in 2023.
• Self-generated electricity in 2023 accounted for 14% of the total.
• Reduced water consumption by almost 31% in 2023 compared to 2019.
• 73% of total waste generated in 2023 was recycled or reused.

Social Achievements

• Launched Safe&Go, a fully digital personal accident insurance including personal mobility vehicles in 2021.
• Launched Respira policy for electric and plug-in hybrid vehicles and motorbikes in 2016 (extended in 2022).
• Launched Llámalo X, a fully comprehensive insurance with excess including a vehicle and maintenance costs in 2022 (includes hybrid versions).

Governance Achievements

• Established a governance structure for climate change risk management, including Board oversight and various committees.
• Linked CEO and management team's variable remuneration to emission reduction targets.
• Linked quarterly variable pay of 35% of the workforce to Sustainability Plan compliance (including environmental actions) in 2022 and 2023.
• Public disclosure of climate change risks in reports (ORSA).

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of adverse weather events leading to higher claims ratios.
• Transition to a green economy generating market, regulatory, and technological transformations.
• Potential decline in portfolio due to lower sales of fossil-fuelled cars and vehicle bans in cities.
• Increased regulatory capital requirements for climate change risks.
• Higher costs due to increased staff and resources for analyzing and monitoring environmental requirements.
• Reputational risks from failing to adequately address climate change.
• Increased reinsurance costs and risk of reinsurer default due to higher exposure to climate events.

Mitigation Strategies

• Underwriting and pricing policy that accounts for increased extreme weather events.
• Specific reinsurance program for catastrophic perils.
• Rate review and frequent adaptation to market changes.
• Analysis of market trends and adaptation of commercial offerings (e.g., electric mobility products).
• Oversight of environmental law and regulations and implementation of action plans to adapt to legislative changes.
• Development of sustainable products and services (e.g., electric vehicle insurance, solar panel coverage).
• Implementation of a photovoltaic plant for self-generation.
• Gradual inclusion of new measures in reinsurance contracting processes to ensure solvency.
• Diversification of reinsurance portfolios to avoid concentration in high-climate-impact areas.

Supply Chain Management

Supplier Audits: Annual ESG supply chain consultations; aim to have all critical suppliers assessed by 2025.

Responsible Procurement

• ESG questionnaire for suppliers including decarbonization and environmental management system information.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events (acute)
• Changes in precipitation patterns and extreme variability (chronic)
• Increased risk of reinsurer default due to higher exposure to climate events

Transition Risks

• Regulatory changes impacting product sales (fossil fuel vehicle bans)
• Increased regulatory capital requirements for climate change risks
• Higher costs to adapt to new environmental requirements
• Reputational risks from failing to address climate change adequately

Opportunities

• Growth in electric vehicle market share
• Growth in personal mobility vehicle segment
• Development of new sustainable products and services
• Increased financial return on investment in sustainable assets
• Cost reduction through improved eco-efficiency

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 50001

Sustainable Products & Innovation

• Respira policy (electric vehicle insurance)
• Safe&Go (personal accident insurance including PMVs)
• Llámalo X (comprehensive insurance with vehicle)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, CDP, CSRD