The pledge furthers goals set out in the insurer’s 2019 climate change policy document
RSA has today (5 December 2022) revealed its aim to transform its underwriting portfolio for energy production to one that is over 75% low carbon by 2030.
The insurer said the new policy would become effective from 1 January 2023 and will be achieved “through the implementation of a dynamic underwriting strategy, which will inform every part of its global underwriting operations”.
As part of the new policy, RSA said it will also progressively rebalance its underwriting portfolio in favour of net zero energy production via renewable energy service offerings for clients, which will be made available across geographies.
Ken Norgrove, RSA’s chief executive for the UK and Ireland, said: “It’s never been clearer that urgent action is needed to tackle the climate crisis.
“At RSA, we’ve long been committed to responsible business and doing what we can to help protect our clients, our environment and the societies in which we live and work. The launch of this new low carbon underwriting policy furthers that commitment.”
Climate adaptation
The insurer – which was acquired by multinational property and casualty insurance company Intact Financial Corporation (IFC) in 2021 – added that it intends to tap into IFC’s experience of delivering climate adaptation and resilience in North America.
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“The new underwriting strategy will utilise robust, independent and verifiable climate data and metrics to both measure portfolio performance and inform enhanced underwriting and portfolio management processes,” it explained.
The new undertaking also furthers the firm’s commitment to enabling the transition to net zero as set out in its 2019 Climate Change and Low Carbon Policy.
The policy included:
- The provision of products and services to support net zero energy generation.
- Supporting clients on their net zero transition pathways.
- A commitment to not underwrite new business that does not align with RSA’s own organisational net zero goals and timelines.
Michael Gregory, RSA’s head of underwriting strategy and delivery, added: “Having exceeded the targets we set out under the low carbon underwriting policy that was implemented in late 2019, today we have the confidence to push ourselves and our business even further, establishing achievable criteria that are among the most progressive in the industry.”
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