Planet
A stable climate and healthy natural environment are vital for human and economic development. Climate change and nature loss impact the real economy we insure and invest in and can ultimately impact on our long-term value. Understanding, measuring, and managing these impacts—while seizing opportunities from the transition—is key to creating sustainable value for our stakeholders. The record-breaking heatwaves, floods, droughts and wildfires we have witnessed in recent years are expected to become more frequent and severe in the coming years. Our climate transition plan focuses on helping society build resilience and supporting an economy-wide transition to net-zero. As insurer and risk manager, we also understand that safeguarding nature is fundamental to sustaining a healthy, thriving world and to enable sustainable growth and prosperity. Ongoing ecosystem loss intensifies climate change and causes environmental degradation, undermining our physical environment's resilience. These risks affect our business and customers, who depend on a stable economy. We aim to deepen our understanding of nature-related risks and help customers manage and prevent them, with climate change remaining a primary focus.
Decarbonization
Engaging, reducing and investing in a net-zero future
This transition to a net-zero economy will bring its own risks in the form of potential cost to businesses from the introduction of policy, laws and other regulations designed to address climate change. Transitional risks and opportunities can also arise from changes in technologies and consumer trends, which may also lead to reputational impacts as society changes its view on ethical business practices.
We are committed to aligning our business activities with a net-zero future. Across Investment and Underwriting, which form the largest part of our emissions footprint, our decarbonisation approach is based on achieving targeted reductions through a process of engagement, in which we work with our customers and investee companies to understand how they are reducing emissions, influence them to build transition plans and encourage them to make commitments to reduce emissions.
* GHG emissions here refer to insurers’ and reinsurers’ Scope 1, 2 and 3 emissions. Insurers’ and reinsurers’ Scope 3 emissions should include their clients’ Scope 1 and 2 and Scope 3 emissions, where significant, and where data allow
