The company intends to embed a pre-bind tool to determine the ESG score of prospective clients
Chaucer has unveiled an update to its ESG sustainability strategy, which outlines how the specialist Lloyd’s insurer will decarbonise its business and embed ESG into the underwriting decision making process.
The insurer aims to be carbon neutral across its operations by 2030 or sooner. As part of its strategy, outlined in the firm’s Sustainability Report, Chaucer is already taking the following action:
- Contiune and grow existing investment methods and metrics to its ESG approach
- Embed ESG into its underwriting operating model
- Build on its ESG approach in its operating model and supplier due diligence process
- Obtain ESG scores for its entire portfolio, set out targets for improvement
- Develop governance of ESG processes
In Q3 2022 Chaucer rolled out its ESG Balanced Scorecard, which it created alongside Moody’s. The scorecard measures the performance of clients and business partners, using up to 158 unique data points to assign scores across various ESG factors.
The company intends to embed a pre-bind tool to determine the ESG score of prospective clients, so that ESG performance is considered during the underwriting decision-making process.
John Fowle, chief executive officer of Chaucer says, “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.”