AXIS Capital Holdings Limited
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- Diversity, Equity, and Inclusion (DEI)
- Philanthropy
Environmental Achievements
- Completed a review of AXIS Insurance International’s climate transition risks and opportunities
- Evaluated climate-related data through our Exposure Management Centre of Excellence (“EMCE”) to advance our understanding of risk and conducted climate stress tests
- Committed to phasing out thermal coal from our insurance, facultative reinsurance, and investment portfolios, and significantly limit business related to oil sands and the Arctic National Wildlife Refuge
- Announced a $20 million investment in BlackRock’s Climate Finance Partnership, a fund focused on renewable energy projects in emerging markets
- Completed our first assessment of our Scope 1, 2 and partial Scope 3 GHG emissions for fiscal year 2019 and started assessments of 2020 and 2021. Disclosed results and used the results to inform our strategy to mitigate our environmental footprint and minimize our operational impact
- Published climate change research that has informed our climate scenario testing by partnering with Verisk and scholars from The Brookings Institution and the University of Illinois
- Reduced electricity usage through the introduction of light timers and light sensors in new facilities and reduced global square footage by transitioning to open office configurations
Social Achievements
- Agreed to allocate a percentage of local philanthropic funding to AXIS ESG priority areas of climate and DEI
- Included financially-relevant ESG considerations, including climate, in our investment manager scorecard for use in 2022
Governance Achievements
- Evolved our climate-related internal and Board governance to help guide AXIS on the next step of our climate journey
- Strengthened policy to limit certain fossil fuel underwriting and investment policy with commitment to phase out thermal coal
Climate Goals & Targets
Medium-term Goals:
- Fully phase out thermal coal from its insurance and facultative reinsurance portfolios no later than 2030 in OECD countries and 2040 globally
Short-term Goals:
- Phase out any existing investments in companies in the thermal coal or oil sands industries that exceed its policy thresholds by the end of 2025
Environmental Challenges
- Increased frequency and severity of natural catastrophe and extreme weather events
- Long-term shifts in weather patterns
- Increased regulatory requirements
- Technological developments disrupting insured assets
- Market shifts in supply and demand
- Reputational risks
- Increased insurance claims liability
- Increased litigation relating to GHG emissions or climate-related disclosure
Mitigation Strategies
- Use of catastrophe models to assess exposure to physical risks
- Scenario analysis to understand how climate-related risks and opportunities may evolve over time
- Climate change stress testing to assess the impact of long-term climate trends on the Company’s current portfolio
- Ongoing monitoring and assessment of changes in legislation
- Investing in growth areas such as renewable energy insurance
- Buying reinsurance and retrocessional cover to mitigate financial impact of catastrophe events
- Integrating ESG considerations into due diligence process to evaluate investment managers
- Stress testing of investment portfolios to account for various scenarios related to climate change
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Increased frequency and severity of natural catastrophe and extreme weather events
- Long-term shifts in weather patterns
Transition Risks
- Policy and Regulatory changes
- Technological developments
- Market Shifts
- Reputational risks
Opportunities
- Increased demand for renewable energy products, environmental insurance, design professional liability insurance and credit insurance
Reporting Standards
Frameworks Used: TCFD, SASB
UN Sustainable Development Goals
- Goal 5: Gender equality
- Goal 7: Affordable and clean energy
- Goal 8: Decent work and economic growth
- Goal 10: Reduced inequalities
- Goal 12: Responsible consumption and production
- Goal 13: Climate action
We are proud to contribute to many of the 17 SDGs through the products and programs we offer as a (re) insurance company.
Sustainable Products & Innovation
- Renewable energy insurance
- Environmental insurance
- Design professional liability insurance
- Credit risk insurance
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:5130 tCO2e/year
Scope 1 Emissions:69 tCO2e/year
Scope 2 Emissions:1851 tCO2e/year
Scope 3 Emissions:3210 tCO2e/year
ESG Focus Areas
- Climate Change
- Diversity & Inclusion
- Governance
Environmental Achievements
- Decreased emissions in line with a 50% science-based, absolute reduction in Scope 1 and 2 emissions by 2030 across global operations.
- Disclosed assessments of Scope 1, 2, and partial Scope 3 GHG emissions for 2023.
Social Achievements
- Launched AXIS Energy Transition Syndicate 2050 to provide capacity for new energy projects.
- Progressed a global sustainable supply chain approach; collected high-level input from select suppliers on their environmental initiatives.
- Received the Inside P&C Honors award for “ESG Initiative of the Year” for GHG emission reduction goals.
Governance Achievements
- Continued to execute climate program in accordance with governance outlined in the report.
- Replaced the Climate Change Working Group with the Environmental Working Group, broadening its remit and membership.
- Created a new Exposure Management Committee to consider both natural catastrophe and non-natural catastrophe risks.
Climate Goals & Targets
Long-term Goals:
- Fully phase out thermal coal from its insurance and facultative reinsurance portfolios no later than 2040 globally.
Medium-term Goals:
- 50% absolute reduction of Scope 1 and 2 emissions by 2030.
- Fully phase out thermal coal from its insurance and facultative reinsurance portfolios no later than 2030 in OECD countries.
Short-term Goals:
- Phase out by the end of 2025 any existing investments in companies in the thermal coal or oil sands industries that exceed its policy thresholds.
Environmental Challenges
- Increased frequency and severity of natural catastrophe and weather-related events (physical risks).
- Increased regulatory requirements, carbon pricing, and mandates (transition risks).
- Increased insurance claims liability due to climate change and climate-related litigation (liability risks).
Mitigation Strategies
- Use of catastrophe modeling and scenario analysis to assess potential financial impact of natural catastrophe risk.
- Portfolio management, product pricing, capital allocation, and reinsurance purchasing decisions to mitigate physical risks.
- Monitoring and assessment of changes in legislation pertaining to the insurance sector, including those related to climate change.
- Investing in growth areas such as renewable energy insurance.
Supply Chain Management
Responsible Procurement
- Global sustainable supply chain approach
Climate-Related Risks & Opportunities
Physical Risks
- Increased frequency and severity of natural catastrophe and weather-related events
Transition Risks
- Increased regulatory requirements, carbon pricing, and mandates
- Changes in technology and societal adaptation to a lower-carbon economy
Opportunities
- Increased demand for renewable energy products, environmental insurance, and reinsurance solutions
Reporting Standards
Frameworks Used: TCFD, SASB, UN Global Compact, Principles for Sustainable Insurance
Sustainable Products & Innovation
- Renewable energy products
- Environmental insurance
- Design professional liability insurance
- Credit risk insurance
- Reinsurance solutions
Awards & Recognition
- Inside P&C Honors, ESG Initiative of the Year