ClimateWise Reporting
Catlin Underwriting Agencies Limited, which manages the Catlin Syndicate at Lloyd’s, is a member of ClimateWise, a group of leading companies and organisations in the insurance industry which are committed to taking action on climate change and to reporting publicly on their own performance.
ClimateWise has established a set of principles to provide a framework for insurance and reinsurance companies worldwide to set out how they will build climate change into their business operations.
Following are the ClimateWise principles and the steps that Catlin has taken to date. Lloyd's is also a member of ClimateWise, and it has reported separately on the actions that the Lloyd's market -- including Catlin Underwriting Agencies -- has taken.
1. Lead in Risk Analysis
- Support and undertake research on climate change to inform our business strategies and help to protect our customers’ and other stakeholders’ interests.
- Support more accurate national and regional forecasting of future weather and catastrophe patterns affected by changes in the earth’s climate.
- Use research and improve data quality to inform levels of pricing, capital and reserves to match changing risks.
- Evaluate the risks associated with new technologies for tackling climate change so that new insurance products can be considered in parallel with technological developments.
- Share our research with scientists, society, business, governments and NGOs through an appropriate forum.
Catlin has undertaken a detailed evaluation of climate change model projections derived from the Intergovernmental Panel for Climate Change and other independent bodies to assess the potential impacts of gradual and extreme climate events in key worldwide regions. This and continual climate change research forms an integral part of Catlin’s business strategy review.
Catlin has started using the latest climate model projections to perform sensitivity studies and enable the assessment of potential future losses in key regions where Catlin currently underwrites.
Catlin is currently conducting more detailed sensitivity studies to review the Group’s capital, liquidity and pricing assumptions.
Catlin is a founder member of the Lighthill Risk Network, a not-for-profit organisation which brings together scientific researchers worldwide, industry, government and third party organisations to exchange risk-related expertise. Catlin has worked closely with the Lighthill members to share and develop a knowledge base of key areas relating to climate change. Catlin also contributes to the identification and related advancement of future climate change research
2. Inform Public Policy Making
- Work with policy makers nationally and internationally to help them develop and maintain an economy that is resilient to climate risk.
- Promote and actively engage in public debate on climate change and the need for action.
- Support work to set and achieve national and global emissions reduction targets.
- Support Government action, including regulation that will enhance the resilience and reduce the environmental impact of infrastructure and communities.
- Work effectively with emergency services and others in the event of a major climate-related disaster.
By joining ClimateWise, Catlin is expressing its support for the work being pursued by the insurance market. More specifically, as a managing agent, we work closely with Lloyd’s in supporting their activities in promoting public awareness and debate on the need to take action on climate change. Click here to read in detail the action being taken by Lloyd’s
3. Support Climate Awareness Amongst Customers
- Inform our customers of climate risk and provide support and tools so that they can assess their own levels of risk.
- Encourage our customers to adapt to climate change and reduce their greenhouse gas emissions through insurance products and services.
- Increase the proportion of repairs that are carried out in a sustainable way through dialogue with suppliers and developers and manage waste material appropriately.
- Consider how we can use our expertise to assist the developing world to understand and respond to climate change
Catlin has started the process of advising and encouraging customers to take note of climate change and adapt their behaviour accordingly with the launch of “FleetDirections”, an initiative targeted at the motor fleet manager. We now provide a comprehensive “green fleet” approach including a free CO2 emissions calculator and green fleet healthcheck.
We are the first insurer to recognise green credentials in our pricing for motor fleet insurance.
4. Reduce the Environmental Impact of Our Business
- Encourage our suppliers to improve the sustainability of their products and services.
- Measure and seek to reduce the environmental impact of the internal operations and physical assets under our control.
- Disclose our direct emissions of greenhouse gases using a globally recognised standard.
- Engage our employees on our commitment to address climate change, helping them to play their role in meeting this commitment in the workplace and encouraging them to make climate-informed choices outside work.
Catlin has entered into a contract with The Carbon Neutral Company, a leading carbon offset and climate consulting business, to offset the carbon dioxide emissions created by Catlin employees’ business-related air travel relating to 2007 and subsequent years. The ‘offset credits’ purchased by Catlin will be used to finance alternative energy and other environmentally sound projects on a quarterly basis. For example, Catlin’s offset credits in the first quarter of 2008 helped finance the Rhine-Rhur Waste Gas Power Project in Germany, which captures methane gas from three abandoned coal mines and uses it to generate electricity and heat.
The Group utilises video conferencing capabilities in the United Kingdom, Bermuda, France and the United States to encourage employees, where possible, to conduct both internal and external meetings via video conference rather than travel.
The company attempts to make good environmental practice part of its everyday activities. For example, the Group operates a comprehensive document scanning system which enables employees worldwide to view documents electronically rather than on paper, minimising waste. The Group also encourages employees wherever possible to recycle paper and other renewable products. The Group strives to minimise energy consumption through the use of automatic light controls that switch off lights when employees are not at their desks.
5. Report and Be Accountable
- Recognise at company Board level that climate risk has significant social and economic impacts and incorporate it into our business strategy and planning.
- Publish a statement as part of our annual reporting detailing the actions that have been taken on these principles.
Continual detailed climate change research is undertaken at Catlin, and its results are debated and recognised at the highest levels of the organisation in the context of their impact on business strategy and planning.
Catlin published a statement in its 2007 annual report detailing its commitment and objectives as a member of ClimateWise.
To ensure greater accessibility and transparency of Catlin’s response to ClimateWise principles for shareholders and the general public, information will be published on the Catlin website.
6. Incorporate Climate Change Into Our Investment Strategies
- Consider the implications of climate change for company performance and shareholder value, and incorporate this information into our investment decision-making process.
- Encourage appropriate disclosure on climate change from the companies in which we invest.
- Encourage improvements in the energy-efficiency and climate resilience of our investment property portfolio.
- Communicate our investment beliefs and strategy on climate change to our customers and shareholders.
- Share our assessment of the impacts of climate change with our pension fund trustees.
Catlin’s overriding obligation to shareholders is to maximise the return from its investments. Catlin’s investments are predominantly in cash instruments and fixed-interest securities. Catlin does not directly invest in individual companies and its current approach is to invest in the funds of external investment managers with the skills to optimise performance.