Specialty re/insurance group Chaucer has unveiled an update to its ESG sustainability strategy, outlining how it will decarbonise its business and embed ESG into the underwriting decision-making process.
Chaucer states that its ESG strategy will be applied across all six of its defined core functions – Investments, Marketing, Underwriting, Operations, Risk and Governance. The firm adds that each core function has its own unique sustainability purpose, focus and objectives for the coming year.
John Fowle, Chief Executive Officer of Chaucer, said, “At Chaucer, we believe ESG should underpin everything we do to meet the increasing need for global sustainability progress.
“The re/insurance industry has an important role to play to encourage its business partners to improve on Environmental, Social and Governance matters and Chaucer is determined to be at the forefront of this movement.
“Our ESG data-driven strategy has been designed to produce measurable results to hold ourselves and our counterparties to account on crucial ESG factors.
“Our ESG vision should produce real change and have a visible impact on the way we do business across all of our core functions.”
Chaucer suggests it is already taking action by growing existing investment methods and metrics in its ESG approach, as well as embedding ESG into its underwriting operating model.
The firm notes that it is also building on its ESG approach in its supplier due diligence process, obtaining ESG scores for its entire portfolio, setting out targets for improvement, and developing governance of ESG processes.
Further, Chaucer says it has implemented changes to help its operations become as environmentally friendly as possible.
These include using 100% renewable energy in its London headquarters, reducing in-office monitors from 920 to 330 and using rechargeable batteries for all IT equipment.
Chaucer’s commitment to ESG principles is further reflected in its lead support of Yokahu, a parametric microinsurance coverholder with whom Chaucer has co-created a microinsurance solutions for underserved communities in the Caribbean.
In related news, at the start of the year, the firm announced its partnership with Kita, a carbon credit insurance specialist, to insure the delivery risk of carbon sequestration projects.