Climate Change Data

Bajaj Allianz General Insurance Company Limited

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:7,875 tCO2e/year
Scope 1 Emissions:179.4 tCO2e/year
Scope 2 Emissions:4,616.9 tCO2e/year
Scope 3 Emissions:3,078.6 tCO2e/year
Renewable Energy Share:35% of total energy use
Total Energy Consumption:6,371,206 KWH/year
Water Consumption:82,012 KL/year
Waste Generated:9.28 MT/year
Carbon Intensity:0.23 tCO2e per thousand crore rupees in FY2024

ESG Focus Areas

  • Preserving and Protecting Environment
  • Empowering Society
  • Human Capital Management
  • Customer Centricity
  • Governance
  • Stakeholder Engagement
  • Cyber Security
  • Financial Inclusion

Environmental Achievements

  • 5% Reduction in net GHG emissions in FY2024 compared to the previous year
  • 35% Increase in renewable energy generation in FY2024 compared to the previous year
  • Planted more than 1,200 trees
  • Savings on ~1.2 MTCO2e by migrating to cloud infrastructure

Social Achievements

  • CSR Spend: ₹36.92 Crore in FY2024
  • 1.34 Crore farmers covered under Crop Insurance
  • Over 1,40,000 lives impacted through CSR interventions
  • Increased percentage of female employees to 15.8% in FY2024

Governance Achievements

  • Voluntary adoption of SEBI’s BRSR starting FY2023
  • Obtained limited assurance for the BRSR and GHG FY2024 reporting
  • ESG Governance Framework implemented
  • Maintained credit rating of “[ICRA]AAA(Stable)”

Climate Goals & Targets

Long-term Goals:
  • Expand presence in semi-urban/rural parts of India through GEO model
Medium-term Goals:
  • Environment restoration through tree plantation by planting one tree per employee by 2027.
Short-term Goals:
  • More than 90% of the applicable portfolio of BAGIC would be assessed for ESG by FY2025.
  • Implement the EHS Manual and the EHS Management system across owned properties by FY2026
  • Aim for certificate of compliance for ISO 14001:2015 and ISO 45001:2018 post implementation for select large offices by FY2026

Environmental Challenges

  • Climate change can result in claim frequency/severity increasing.
  • Undesirable customer experience could result in loss of customers or reputational loss.
  • Shallow reach of insurance products and services in India, especially in mass and rural segments.
Mitigation Strategies
  • Underwriting policies and procedures to assess and manage climate change risks.
  • Periodic review of underwriting processes.
  • External models used to assess climate risk concentration.
  • Reinsurance programs to optimize risk retention.
  • ESG reporting enhanced year on year.
  • Listening to customers and driving continuous transformation to provide frictionless experience.
  • Innovative technology solutions for seamless customer journey.
  • Monitoring customer experience through root cause analysis of grievances, NPS, etc.
  • Rural distribution networks, digital platforms, and customized product offerings to enhance financial inclusion.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sourcing from over 1,000 MSME vendors

Climate-Related Risks & Opportunities

Physical Risks
  • Increased claim frequency/severity due to inclement weather
  • Reputational risk from failure to meet stakeholder expectations
Transition Risks
  • Increased expenses from conforming to environmental standards
Opportunities
  • Opportunities to insure new asset classes (renewable energy, electric vehicles)
  • Increased awareness and need for insurance products

Reporting Standards

Frameworks Used: BRSR, GRI

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 22301

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

  • Goal 7
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 16
  • Goal 17
  • Goal 1
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 8
  • Goal 9
  • Goal 10

Company operations and ESG initiatives touch 15 out of 17 SDGs.

Sustainable Products & Innovation

  • Electric vehicle insurance
  • Renewable energy insurance
  • Surety Bond Insurance

Awards & Recognition

  • Over 25 awards won in FY2024