Sustainable Underwriting

To support our ambition in sustainable underwriting, we have developed practices and guidelines that include the following:

• Engaging with clients representing at least 30% of SCOR Business Solutions (SBS) premiums to understand how energy transition may impact them, their targets, challenges and needs, over the period of “Forward 2026” strategic plan.
• Supporting sustainable solutions: multiplying insurance and facultative reinsurance coverage for low carbon energy by 3.5 by 2030⁽¹⁾.
• Assessing and disclosing the climate alignment of our hull and machinery marine portfolios and benchmarking them against two trajectories linked to a 50% reduction of annual greenhouse gas emissions by 2050 compared to 2008 and a 100% reduction of emissions by 2050 (in line with the Poseidon Principles for Marine Insurance):
• Incorporating ESG performance criteria in the insurance and facultative reinsurance underwriting of oil and gas, mining, power generation, construction.
• Aligning with the UNESCO Principles for Sustainable Insurance and World Wildlife Fund initiative to protect endangered World Heritage Sites
• Excluding insurance and facultative reinsurance coverage for the tobacco industry

To align with the Paris agreement and with the science-based trajectory of 1,5°C⁽³⁾, SCOR has set its first interim target relating to companies having their headquarters in Europe for its Property & Casualty direct insurance and facultative reinsurance books of business (commercial lines)⁽⁴⁾. Using the PCAF⁽⁴⁾ methodology SCOR aims to achieve a reduction of 23% in the intensity of its GHG3 emissions by 2030 versus the end of 2022. SCOR will make all reasonable efforts to reach this interim target by 2030⁽⁵⁾.

Footnotes:

⁽¹⁾Using SCOR’s Estimated Gross Premium Income (“EGPI”) for 2020 as the baseline.

⁽²⁾ Exceptions may be made for direct insurance and facultative reinsurance coverage for insureds with a verified strategy that is aligned with a credible net-zero by 2050 transition plan and will be based on the Science Based Targets initiative (SBTi), once available, or comparable third-party issued science-based target setting guidance for the upstream oil and gas sector

⁽³⁾ The 1,5°C science-based trajectory refers to the goal outlined in the context of global efforts to address climate change to limit global warming to an increase of no more than 1.5°C above pre-industrial levels.

⁽⁴⁾ As per the Partnership for Carbon Accounting Financials (PCAF, version 1 dates November 2022) perimeter when reliable data is available

⁽⁵⁾ Achieving this target, however, is highly dependent on externalities outside of SCOR’s control. The actions and policies of different governments, and the transition of all stakeholders toward decarbonization of the real economy, are all crucial to align the world to the Paris agreement. Other factors linked to climate science, political, geopolitical, economic and regulatory developments which are outside of SCOR’s control may impact SCOR’s ability to deliver on its target. Without decisive and global action by governments, the world will not be able to reach a 1.5°C trajectory and SCOR will not be able to achieve its targets.