ESG performance

Our stakeholders should understand the ways in which climate change is affecting our business now, and in the future.

““Our business is built around our customers. By focusing on their needs, we challenge ourselves to achieve more.””

William McDonnell Chief Risk Officer


2019 progress

  • Board oversight with updates on a six-monthly basis
  • Executive oversight through Group Corporate Responsibility Committee and ESG Committee
  • Climate change incorporated into senior manager responsibilities

2020 priorities

  • Embed and improve our governance mechanisms
  • Establish reporting to monitor delivery against the Climate Change Risk Action Plan

Risk management

2019 progress

  • Prioritised ESG issues relevant to RSA
  • Integrated climate change in Group Risk Appetite Statement and Own Risk and Solvency Assessment (ORSA)
  • Converted long-term physical risks to short-term trends for use in risk management and planning

2020 priorities

  • Having articulated our risk appetite in 2019, ensure this is fully embedded through underwriting, asset and risk management processes
  • Develop approach to climate change scenario analysis
  • Monitor and refine our Low Carbon Policy position


2019 progress

  • Defined specific position on climate change and our support for the transition to a low-carbon economy, and Climate Change Risk Action Plan
  • Launched Confident Futures strategy, including focus on responsible underwriting and investments and sustainable operations
  • Climate change discussed at Board offsite

2020 priorities

  • Review how climate issues are integrated into regional and portfolio underwriting strategies
  • Continue our engagement with forums, including ClimateWise, UN Principles for Sustainable Insurance and PRA/FCA Climate Financial Risk Forum
  • Further develop our view of transition opportunities and risks

Metrics and targets

2019 progress

  • Achieved a 15% reduction in carbon emissions compared with 2018
  • Set new carbon emissions reduction target for our direct operations; and commitment to sourcing renewable energy for our operations
  • Achieved a score of B in the 2019 CDP climate disclosure framework

2020 priorities

  • Enhance the metrics we use to track and measure progress on our strategic objectives
  • Explore carbon footprinting of our underwriting portfolio



This year, for the first time, we are beginning to report in line with the Taskforce for Climate-related Disclosure (TCFD) framework