Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Moved all its electrical energy consumption to renewable sources in 2020
• Achieved carbon neutrality in 2020 by purchasing carbon offsets
• 5% energy reduction target for all mechanical and electrical infrastructure projects
• Rollout of LED lighting at head office in 2021
• Transitioned customers from paper-based printing to digital document management in 2020 and 2021

Social Achievements

• Launched a new Diversity and Inclusion Strategy and policy in 2021
• Maintained its position as the leading general insurer as defined by customer experience
• Secured naming rights to Semple Stadium
• Continued support to local GAA clubs
• Supported the next generation of farm leaders and innovators through partnerships with Teagasc and the ASA
• Farm Protect Campaign promotes behavioural changes to improve farm safety standards and awareness
• Champions for Safety and Agri Aware Safe Schools Programme educate future farmers on farm safety

Governance Achievements

• Established a Sustainability Committee and Working Groups to drive ESG and sustainability
• Appointed Tomás Ó Midheach as CEO and Jean Sharp and John O’Dwyer to the Board in 2021
• Implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impact on claims environment, court delays, and settlement talks
• Brexit and Covid-19 impacting supply chains, increasing repair costs
• High number of farm fatalities and serious accidents
• Climate change: physical risks to property and person, transition risks from adjustment to a low-carbon economy

Mitigation Strategies

• Interim payments to customers for Business Interruption claims
• Application of reinsurance cover agreed with reinsurers
• Premium rebates, suspension of cover reductions, and payment flexibility for customers during Covid-19
• Farm Protect Campaign
• Champions for Safety and Agri Aware Safe Schools Programme
• Dedicated Emerging Risk process integrating climate risks into Risk Management system
• Stress testing of investment portfolio for transition risk
• Scenario analysis of underwriting portfolio for physical risks
• ESG assessment tool on large and strategic tenders

Supply Chain Management

Responsible Procurement

• ESG assessment tool on large and strategic tenders
• Supplier Charter outlining standards for ethical and sustainable practices

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in rainfall patterns, temperature rises, and sea levels
• Increased reinsurance costs

Transition Risks

• Reduction in value of assets due to increased raw material costs, reduced demand, increased production costs, and abrupt shifts in energy costs
• Fall in premium income due to customers transitioning to a low-carbon economy
• New legislation capping agricultural activity

Opportunities

• Designing insurance products to meet the needs of a changing world
• Incentivising customers to transition to low-carbon alternatives
• Selecting assets that benefit from the transition to a low-carbon economy

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Premium discount for home insurance customers with minimum B3 BER rating
• Environmental liability cover for farmers on Farm Multiperil product
• Insurance cover for farmers investing in forestry

Awards & Recognition

• Bronze rating under the Irish Centre for Diversity ‘Investors in Diversity’ Framework

Environmental Metrics

ESG Focus Areas

• Diversity & Inclusion
• Climate Change
• Farm Safety
• Community Engagement
• Sustainable Investments

Environmental Achievements

• Achieved carbon neutrality for Scope 1 and 2 emissions by purchasing carbon offsets.
• Reduced Scope 1 emissions by 32%.
• Purchased all electricity from renewable sources.
• Improved management of end-of-life ICT equipment to maximize recycling.

Social Achievements

• Achieved silver Diversity & Inclusion accreditation.
• Launched employee wellness program.
• Launched 13 farm safety videos in partnership with Teagasc and the Farm Safety Partnership.
• Increased retention rates across all channels and products.

Governance Achievements

• Integrated ESG into wider strategy.
• Undertook a structured process to determine where to have a meaningful ESG impact.
• Established a Sustainability Committee.
• Completed an external evaluation review with Board Excellence.

Climate Goals & Targets

Environmental Challenges

• Investment losses due to challenging equity and fixed income markets.
• Higher frequency and inflationary impacts in Motor Damage and Property claims.
• Supply chain disruptions impacting construction and motor industries.
• Challenges over the constitutionality of laws underpinning Personal Injury Guidelines.
• Delays in claim settlements due to legal challenges.

Mitigation Strategies

• Implemented a comprehensive plan to address underinsurance.
• Renegotiated reinsurance program with increased rates for property and casualty.
• Made changes to indexation levels to reflect increased construction costs.
• Running Inflation Protection offers on Home, Business & Farm products.
• Actively monitoring the impact of changes on portfolio.

Supply Chain Management

Supplier Audits: ESG assessment tool on large and strategic tenders.

Responsible Procurement

• Supplier Charter detailing support for Universal Declaration of Human Rights.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of weather events
• Increased costs of reinsurance or unavailability of reinsurance cover
• Reduction in asset values and lower investment returns

Transition Risks

• Reduction in asset values and lower investment returns
• Risk of a shrinking insurance market due to policy and societal changes

Opportunities

• Extension of insurance products to include climate-related features
• Assisting customers on their climate transition journey
• Investment opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: Investors in Diversity (Silver)

Third-party Assurance: Clearstream Solutions

Sustainable Products & Innovation

• Premium discount for home insurance customers with high BER ratings
• Environmental liability cover for farmers
• Insurance cover for forestry

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Advocacy
• Operations
• Investments
• Disclosures

Environmental Achievements

• Contributed €2.5m to the Padraig Walshe Centre for Sustainable Animal and Grassland Research, supporting climate-related research and improving environmental sustainability in Irish agriculture.
• Purchased all electrical energy from renewable sources.
• Undertook a decarbonisation analysis to understand actions required to reduce Scope I and II emissions.
• Redesign of products to incorporate features to support customers who use solar panels and domestic wind turbines for own energy production.

Social Achievements

• Launched Teagasc/FBD Environmental Sustainability Awards to promote environmentally sustainable farming.
• Continued support for the next generation of farm leaders and innovators through partnerships with Teagasc, UCD, Nuffield, and the ASA.
• Achieved Silver accreditation for being Investors in Diversity through the Irish Centre for Diversity.
• Continued Farm Safety campaigns to encourage farmers to make small but meaningful changes to their working behaviour.

Governance Achievements

• Became a signatory to the UN Principles for Sustainable Insurance.
• Established a Sustainability Committee to integrate ESG into wider strategy.
• Completed a current state assessment of paper usage and contacted all shareholders offering the option to receive correspondence electronically.

Climate Goals & Targets

Environmental Challenges

• Increasing costs of reinsurance or unavailability of reinsurance cover due to increased frequency and severity of weather events globally.
• Reduction in asset values and lower investment returns due to climate change impacts on certain sectors and regions.
• Risk of a shrinking insurance market due to policy and societal changes aimed at reducing carbon emissions.
• High inflation impacting materials and labor costs in the Motor and Construction industries, affecting claims costs.
• Challenges to the Personal Injury Guidelines resulting in delayed settlements and additional inflation.
• Continually increasing settlement costs and potentially higher injury claims costs in the near future due to pressure on salary inflation.

Mitigation Strategies

• Renegotiated the reinsurance program for 2024, retaining more risk at lower layers.
• Actively integrates ESG considerations into investment processes, including exclusions and transition risk limits.
• Redesign of insurance products to incentivize better customer behavior and provide additional cover for climate-positive customer risks.
• Brought underinsurance to the attention of policyholders and ran an inflation protection offer.
• Continuously monitoring the rate of inflation for the purposes of reserving and pricing.
• Implementing a “Build Back Better” policy to make properties less susceptible to weather damage.
• Using specialist flood risk modelling services to determine future vulnerability of locations to climate-related flooding.
• Becoming more selective in relation to policy acceptance to avoid insuring high-risk policyholders.

Supply Chain Management

Supplier Audits: ESG assessment tool on all large and strategic tenders.

Responsible Procurement

• FBD Supplier Charter outlining climate-related expectations and ethical standards.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of weather events
• Increased costs of reinsurance or unavailability of reinsurance cover
• Reduction in asset values and lower investment returns

Transition Risks

• Reduction in asset values and lower investment returns
• Risk of a shrinking insurance market due to policy and societal changes

Opportunities

• Extension of insurance products to include climate-related features
• Assisting customers on their climate transition journey
• Investment opportunities

Reporting Standards

Frameworks Used: TCFD, EU Taxonomy, UN Principles for Sustainable Insurance

Third-party Assurance: Clearstream Solutions

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Products incorporating features to support customers using solar panels and domestic wind turbines.

Awards & Recognition

• Best General Insurer in the 2023 CXi Report