Fidelis MGU has announced a 2030 decarbonisation target in support of its broader aims, with Richard Brindle, Group Chief Executive Officer and Chairman, describing it as a “meaningful step forward” in the firm’s climate change strategy.
Fidelis MGU stated that it is committed to reaching net zero Insurance-Associated Emissions (IAEs) by 2050, in line with science-based pathways to limit global warming to 1.5 degrees as per the ambition of the Paris Agreement.
Thus, in an initial step towards this, the firm is setting a first interim target for its underwriting portfolio, covering all emission scopes across the energy and aviation industries.
“To be consistent with climate science as laid out by the Intergovernmental Panel on Climate Change (IPCC), an emissions reduction in the range of 26-49% is required between 2022 and 2030,” the Fidelis MGU explained.
Richard Brindle, Group Chief Executive Officer and Chairman, commented, “This is a meaningful step forward in our climate change strategy: we now have not only a long-term net zero goal but also a near-term target and a plan of action to get us there.
“We look forward to engaging with all our stakeholders as we make progress on this critically important issue.”
Fidelis MGU disclosed that 2022 IAEs totalled 1.2 million tonnes of CO2 equivalent for its in-scope portfolio, with the portion covered by its 2030 target accounting for c.40% of this.
Its calculations follow the PCAF methodology and have received limited assurance from Crowe UK LLP.
“While we do not yet have sufficient basis for consistently assessing transition plans, it is clear what data we need to assess the trend of actual emissions,” the firm said.
Fidelis MGU continued, “As an immediate next step, we will therefore start systematically requesting emissions data for the insureds we support. This will enable us to start building a view of whether insureds are delivering on decarbonisation commitments.
“We expect that over time, the emissions of most of our insureds will reduce significantly. We will increasingly engage with insureds over the coming years to encourage them to transition, and to expect stronger underwriting action only where we see no willingness to commit to transition.
“We are also exploring new products to support the transition to a greener economy and meet the emerging needs of our clients.”
Fidelis MGU said that the implementation of its net zero strategy will evolve over time, along with the PCAF methodology and best practice guidelines for insurance transition plans.
The firm went on, “We will be as transparent as possible as this evolution progresses, not claiming to have all the answers up-front but also not shying away from taking action.
“We will continue to follow climate science and look to independent expert opinion to make sure our requirements are robust but also realistic.”
