Key material issues and our climate change strategy
Key material issues
Based on the insights gained through this process, we currently consider the following sustainability or ESG as the most material in the context of our own business:
- Climate change:
- Managing climate and natural disaster risk
- Advancing sustainable energy solutions
- Funding longer lives
- Partnering for food security
- Supporting financial resilience
- Managing sustainability risks
- Empowering our people
- Ensuring good governance and compliance
Climate change
Climate change has been our most important material issue for many years: For a reinsurer, it constitutes a key material topic because it will lead to an increase in the frequency and severity of natural catastrophes such as floods, storms, excessive rainfall and drought. In combination with growing asset concentrations in exposed areas and more widespread insurance protection, this will cause a steady rise in losses. Of our key material topics listed above, two are directly connected to climate change (managing climate and natural disaster risk, advancing sustainable energy solutions).
Since detecting the long-term threat posed by climate change almost 30 years ago, we have been an acknowledged thought leader on the topic. To tackle the issue, we pursue a comprehensive strategy with four pillars. These are described below:
A hurricane wreaking havoc in the Caribbean. Natural catastrophes and the impact of climate change remain key topics for us and our partners.
The four pillars of our climate change strategy
- Advancing our knowledge and understanding of climate change risks, quantifying and integrating them into our risk management and underwriting frameworks where relevant;
- Developing products and services to mitigate or adapt to climate risk;
- Raising awareness about climate change risks through dialogue with clients, employees and the public, and advocating a worldwide policy framework for climate change;
- Tackling our own carbon footprint and ensuring transparent, annual emissions reporting.