SCOR SE Group
sustainability report 2023
CO N T E N TS
1
SCOR's approach to sustainability
2
Good Governance
3
Engaged People & Positive Workplace
4
Sustainability in underwriting activities
5
Sustainable investment activities
6
Turning knowledge into impact and opportunities
7
Sustainable operations
8
Impacts, risks and opportunities identification and management
9
Business ethics
10
Metrics and targets
11
Other sustainability-related data
12
Tables of correspondence
13
Overview of publicly available documents
TABLE OF CONTENTS
6
16
24
34
44
58
64
70
96
102
116
124
135
2023 Group sustainability report | 3 |
OUR GROUP
About this report
This sustainability report discloses information on SCOR's organization, ambition, and performance, regarding sustainability. It addresses some regulatory requirements (Article 29 of the French bill on Energy and Climate) and provides information aligned with voluntary frameworks such as TCFD, GRI or SASB. It also details innovations and preliminary studies to provide evidence of SCOR's efforts to participate in improving resilience and building a more sustainable tomorrow.
SCOR at glance
SCOR, a leading global (re)insurer, offers its clients a diversified and innovative range of reinsurance and insurance solutions and services to control and manage risk. Applying "The Art & Science of Risk," SCOR uses its industry-recognized expertise and cutting-edge financial solutions to serve its clients and contribute to the welfare and resilience of societies.
Established in around 30 countries worldwide, the Group provides services to more than 5,200 clients. With leading knowledge, talent, and expertise across all lines of business, SCOR develops bespoke solutions centered around customer needs in an evolving insurance ecosystem.
COMBINING THE ART & SCIENCE OF RISK TO PROTECT SOCIETIES
EUR 2.3 billion | |||||||||||
%$F2:A-M$)-*$ | |||||||||||
invested in | |||||||||||
-B)C+H-- | |||||||||||
RISK | assets financing | ||||||||||
Emerging | the transition | ||||||||||
Evolving | TRANSFER | EUR 17.2 | EUR 19.4 | ||||||||
technologies | health trends | RISK | million granted | ||||||||
& digitalization | billion in gross | ||||||||||
PRICING | by SCOR | ||||||||||
Foundation | written | ||||||||||
premiums | |||||||||||
BUSINESS | for science | BENEFICIARIES | |||||||||
RISK | |||||||||||
OPPORTUNITIES | |||||||||||
POOLING | !"#$%&'($ | CLIENTS | |||||||||
Climate & | |||||||||||
Changing | )*+)+,-.$ | ||||||||||
P&C RISKS | Raw | Value | |||||||||
environmental | ./0/.-1. | ||||||||||
demographics | EMPLOYEES | ||||||||||
challenges | Material | RISK | 6th LARGEST REINSURER | Creation | |||||||
LIFE & HEALTH RISKS | EUR 4.7 billion | ||||||||||
IN THE WORLD | SHAREHOLDERS | ~5,200 clients | |||||||||
ASSESSMENT | |||||||||||
shareholder | |||||||||||
worldwide | |||||||||||
ASSET RISKS | equity | SOCIETY/COMMUNITY | |||||||||
Shifting social | Energy | CLAIMS | |||||||||
MANAGEMENT | |||||||||||
& geopolitical | RISK | ||||||||||
transition | |||||||||||
landscapes | IDENTIFICATION | 12 training | |||||||||
209 % |
Solvency ratio | hours/ |
employee | |
4 | SCOR | 2023 Group sustainability report | 5 |
1.
SCOR's approach to sustainability
1.1 | Overarching principles | 8 |
1.2 | SCOR'S approach | 10 |
6 | SCOR | 2023 Group sustainability report | 7 |
1.1. OVERARCHING PRINCIPLES
The Group's sustainability approach is guided by its raison d'être. The sustainability strategy aims to deliver on SCOR's Theory of Change based on the double materiality principle and its commitment to provide positive outcomes and improve resilience. SCOR's involvement in United Nations convened initiatives and the Sustainable Development Goals provides global frameworks to develop an ambitious sustainability strategy. These overarching principles are detailed in SCOR's sustainability pol- icy. SCOR believes in transparency to demonstrate its accountability vis-a-vis its external stakeholders and to participate in accelerating the sustainability journey.
RAISON D'ÊTRE
DOUBLE MATERIALITY
Protecting the business from downside effects linked to non-financial risks is part of SCOR's risk management. Insuring and financing the sustainable development of societies encompasses another dimension requiring SCOR to consider impacts of its decisions on People and ecosystems with the aim to not compromise the ability of future generations to meet their own needs. By doing so, SCOR actively contributes to a more sustainable world and, in return, protects its business against damage over a much longer time horizon. This loopback effect drives back the long-term horizon within shorter-term business decisions. This double materiality principle combines financial (outside-in) and impact (inside-out) materiality and underpins SCOR's Theory of Change.
SCOR considers a sustainability matter as material if it is relevant from:
SCOR'S THEORY OF CHANGE
The Group's main concerns are directly linked to its core business and focus on people and resilience: improving protection of societies and participating in building a more resilient economy.
SCOR has developed its own Theory of Change, striving to optimize its impact on Human Capital, Nature and People. It is underpinned by its raison d'être to combine the Art and Science of Risk to protect societies and recognizes the need to act to improve resilience. It follows three guiding principles:
SCOR'S THEORY OF CHANGE
1. SCOR's approach to sustainability
- SCOR strives to reduce negative impact of all its activities,
- as it operates alongside the real economy, the Group needs to engage with its partners, clients, and investees to support their own journey toward more resilience, and
- SCOR wants to support the transition to a better tomor- row and to benefit from opportunities stemming from this transition.
Policy advocacy
As a global (re)insurance company, SCOR contributes to the welfare, resilience, and sustainable development of society by bridging the protection gap, increasing insurance accessibility, helping to protect the insured against the risks they face, pushing back the frontiers of insurability and acting as a responsible investor. Through the expertise and know-how of its employees, it combines the Art and Science of Risk to offer its clients an optimum level of security and creates value for its shareholders by developing its L&H and P&C business lines, respecting strict corporate governance rules. SCOR provides its clients with a broad range of innovative (re)insurance solutions and pursues an underwriting policy founded on profitability, supported by effective risk management and a prudent investment policy.
- a financial perspective (or outside-in approach), which is related to the financial risks and opportunities that sus- tainability matters can have on the organization, or
- an impact perspective (or inside-out approach), which is related to the significant impacts that SCOR can have on people or the environment.
NON-FINANCIAL RISK MANAGEMENT
SCOR conducts internal assessment of the main sustainability issues, risks and opportunities that could have a financial impact on its business activities. As such, SCOR may be exposed to emerging risks, which include new threats or constantly changing current risks with a high degree of uncer- tainty. The transformation of the economy may also provide business opportunities that are constantly being analyzed for
Advocating | |||
Engagement | |||
Clients / | Reporting | ||
Partners / | |||
Investees | Insuring / | ||
Emissions | |||
Financing new | |||
reduction | PPMI | technologies | Sustainability Report |
Engaging with at least 30% | URD Section 6 | ||
of SCOR Business Solutions | |||
(formerly SCOR Specialty | |||
Exclusions on most | Insurance) | x3.5 EGPI in low carbon | |
emitting industries | Single Risk premium | energy | |
Decarbonation targets | Collaborative engagement | Green and sustainable | |
with other investors | bonds targets |
The Group shares the fortunes of societies over the long term. Closing the protection gap is both an imperative, and a source of opportunities in its business which consists in two main goals:
- protecting society from extreme events, accompanying economic agents in mitigating the effects of climate change and enabling a smooth transition to a more sus- tainable future
- accompanying people's health and wellbeing, includ- ing by developing accessible health prevention
To deliver on its ambition, SCOR ensures that this approach is clearly reflected in its main reference texts, in particular
further developments. Environmental, social and governance (ESG) trends may positively or negatively impact SCOR's business and operations.
TRANSPARENCY
Measuring progress and publicly reporting on outcomes is part of SCOR's philosophy. It demonstrates the Group's commitment to deliver on its objectives and targets and contributes to spreading good practices and sharing innovation across the (re)insurance industry. This effort and
Last Update:
February 2024
B
SCOR's journey towards sustainability were recognized by non-financial rating agencies, and most of SCOR's ratings have notably progressed over the last few years. Following the 2023 ESG rating campaign, SCOR has maintained its AA rating by MSCI and B by CDP:
Last Update:
August 2023
the Code of Conduct, and that every employee embarks on the Group's sustainability journey.
C
F
BB
AA
BBB
2016 2017 2018 2019 2020 2021 2022 2023
Scale: D - to A. (F corresponds to a non-disclosure)
2015 2016 2017 2018 2019 2020 2021 2022 2023
Scale: CCC to AAA
8 | SCOR | 2023 Group sustainability report | 9 |
1.2. SCOR'S APPROACH
February 2021
SCOR signs the Climate Action 100+ initiative
March 2021
1. SCOR's approach to sustainability
April 2022
SCOR's journey toward sustainability
Environmental and climate
General
Social equality
Health
May 2020
SCOR joins CDP Water Champions
May 2021
SCOR joins the PRI Sustainable Commodities Practitioners' Group (SCPG)
SCOR joins the Finance for Biodiversity Foundation
September 2021
SCOR officially supports the TCFD
SCOR joins the Taskforce on Nature-related Financial Disclosures (TNFD) Forum
October 2021
SCOR joins the Powering Past Coal Alliance (PPCA)
SCOR becomes the first (re)insurer to join
SCOR publishes
The relevance of climate change for life insurance
SCOR signs Investor letters of support for Deforestation- free legislation
May 2022
SCOR joins the CDP SBTi campaign
June 2022
SCOR signs a letter supporting an initiative by FAIRR for the agriculture and land use sector
July 2021
February 2023
SCOR joins the Investor Initiative on Hazardous Chemicals (IIHC)
March 2023
SCOR joins the Business
Coalition for a Global
July 2009
SCOR SE signs the Kyoto Statement, a major insurance and (re)insurance initiative to combat climate change
November 2015
SCOR commits to the first French climate pledge
March 2017
SCOR signs the Shift Project's "Decarbonize Europe Manifesto"
December 2017
SCOR signs the second French Climate Pledge
December 2018
SCOR commits to protecting World Heritage Sites
SCOR joins the Net-Zero Asset Owner Alliance (NZAOA)
July 2020
SCOR joins CDP Forest Champions
December 2020
SCOR signs the Finance for Biodiversity Pledge
the Climate Transition Pathway accreditation framework (CTP)
November 2021
SCOR sets target with Act4nature International
SCOR signed a financial sector commitment letter on eliminating commodity-driven deforestation from Race to Zero
December 2021
SCOR is a founding member of the Poseidon Principles for Marine Insurance
SCOR joins the Ceres Valuing Water Finance Initiative
as an investor signatory
November 2022
SCOR signs a Private financial sector statement for COP15 from Finance for Biodiversity
December 2022
SCOR joins the Partnership for Carbon Accounting Financials (PCAF)
Plastics Treaty
May 2023
SCOR joins IIGCC (Institutional Investors Group on Climate Change)
SCOR joins the Net Zero Engagement Initiative (NZEI) of IIGCC
September 2023
SCOR joins Nature Action 100 (NA100)
2003 | 2008 | 2009 | 2012 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
June 2003
SCOR joins the Global Compact initiative
June 2012
SCOR is a founding member of the PSI
February 2008
SCOR (Paris office) commits to
- policy of anti-discrimination and to male/female equality among its staff
January 2015
SCOR signs the European Charter on Professional Equality between Women and Men
December 2016
SCOR IP signs the United Nations Principles for Responsible Investment (PRI)
November 2016
SCOR develops the SCOR International Gender Network (SIGN+)
SCOR signs the Global Charter on Professional Equality between Women and Men
September 2019
SCOR signs the United Nations Principles for Responsible Investment (PRI)
September 2021
The Group appoints a Group Chief Sustainability Officer as member of the Executive Committee
October 2021
SCOR joins Women Empowerment Principles (WEPs)
November 2021
SCOR signs Financi'elles (charter)
June 2022
SCOR joins the PRI Advance stewardship initiative on human rights and social issues
May 2017
SCOR sponsors a global statement supporting stronger regulation around tobacco control
September 2018
SCOR is a founding signatory of the tobacco-free finance pledge
10 | SCOR | 2023 Group sustainability report | 11 |
GENERAL REFERENCE FRAMEWORK
United Nations Global Compact (UNGC)
SCOR is a longstanding participant of the United Nations Global Compact, integrating its 10 principles - on human rights, international labor standards, environmental protec- tion, and the fight against corruption - within a framework tailored to its sphere of influence. The Ten Principles of the United Nations Global Compact are derived from: the Universal Declaration of Human Rights, the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption. Yearly Communication on Progress is a way to demonstrate how SCOR improves its sustainability performance over time.
Sustainability principles:
PSI and PRI
In 2012, SCOR became a founding signatory of the Principles for Sustainable Insurance (PSI), a global initiative announced in the run up to the United Nations conference on sustainable development, created under the aegis of the United Nations Environment Programme - Finance Initiative (UNEP FI). Principles for Sustainable Insurance (PSI) serve as a global framework for the insurance industry to address environmental, social and governance risks and opportunities. Following the 4 principles, the Group endeavors to embed environmental, social, and governance considerations in its (re)insurance activities and risk management framework. The Group also works on innovative solutions to help clients and partners deal with sustainability challenges and dialogue with external stakeholders to better provide positive impacts.
Having joined in 2019, SCOR is also a signatory of the Principles for Responsible Investment (PRI), striving to respect the six principles to better embed environmental, social and governance within its investment decision process and ownership policies and practices. The Group collaborates with other actors of the investment ecosystem to promote the principles and fosters transparency through
public reporting and advocacy.
Transparency though reporting and communication on progress is a testimony of SCOR's performance vis-a-vis principles supported by those initiatives.
Alignment with international objectives
SCOR intends to align with international objectives to limit global warming and preserve biodiversity. Achieving the objectives of the Paris agreement and living in harmony with Nature are the first two pillars of SCOR's sustainability ambition. The Group targets to be Net Zero by 2050 and is a signatory of the Finance for Biodiversity Pledge, with an objective to reverse biodiversity loss in investments by 2030.
Sustainable Development Goals (SDG)
In order to optimize its impact and support a consistent Theory of Change, SCOR has collectively selected three SDGs as priority for its sustainability roadmap, leveraging on its core activities and strengths:
Climate action
Good Health and Wellbeing
Quality education
Directly linked to its core business and internal expertise, these SDGs come as a priority when designing the Group sustainability ambition. They are complemented with other goals supporting the main objectives. All are directly related to Nature as the main sustainability concern beyond climate change:
Clean water and sanitation
Sustainable cities and communities
Life below water
Life on land
IDENTIFYING SUSTAINABILITY RISKS, OPPORTUNITIES, AND IMPACTS (IRO)
Following the double materiality principle and to get the full picture of its impacts, risks, and opportunities (IRO), when considering sustainability matters, the Group conducts regular reviews of the risks and opportunities that could have a material effect on its activity, its financial situ- ation, or its results (or capacity to reach objectives). It also considers impacts of its activities on people and ecosys- tems, using various enterprise risk management (ERM) mechanisms or relying on external frameworks.
A materiality analysis is also used to assess sustainability -related risks, opportunities, and impacts. It is based on
OUTSIDE-IN OUTCOMES
Human capital management, climate change (physical and transition risks) and nature & biodiversity are perceived as the key sustainability matters and non-financial risks for SCOR in terms of market expectations and strategic ambition. Climate change and biodiversity have been
1. SCOR's approach to sustainability
the double materiality principle and relies on interviews and surveys conducted with internal and external stakeholders, covering a broad range of sustainability- related matters.
In 2022, SCOR conducted a full analysis, implying internal and external stakeholders on both financial materiality and impact. It was not deemed necessary to repeat the exercise in 2023, given the absence of any significant change.
The results of the materiality analysis conducted in 2022 and presented below have supported the design of SCOR's sustainability ambition and will drive its strategy over the course of Forward 2026 new strategic plan.
identified by the Group for several years in its emerging risks radar. They have also become priorities of external stakeholders and have been put at the top of the agenda of regulation on sustainable finance.
12 | SCOR | 2023 Group sustainability report | 13 |
INSIDE-OUT OUTCOMES - SCOR'S IMPACT ON EXTERNAL ECOSYSTEMS
Human capital management and climate change (physi- cal and transition) are also perceived as the sustainability matters on which SCOR can have the greatest impact. Given the Group's activities in the Life & Health business, the impact analysis also shows that health is a key sustainability topic on which it can have positive impact. These sustainability factors are directly derived from SCOR's core business. Hence the Group can optimize its impact through its underwriting strategy and, to a lesser extent, its investment strategy. The Group's expertise in understand-
ing new trends and risk modelling offers opportunities to address environmental challenges, improve resilience of societies through innovative products and solutions, and support its Theory of Change.
The outcomes of the analysis are aligned with SCOR's raison d'être and tie with the Group's ambition to accelerate its transformation journey and participate in building a more resilient and sustainable tomorrow.
14 | SCOR | 2023 Group sustainability report | 15 |
2.
Good
Governance
2.1 Board of directors' oversight | 18 |
of sustainability-related issues |
2.2 The role of the executive committee
and its dedicated committees | 20 |
2.3 Coordination, implementation
and operational governance | 20 | |
2.4 | Performance conditions on | 23 |
social and environmental issues | ||
2.5 | Communication and transparency | 23 |
16 | SCOR | 2023 Group sustainability report | 17 |
SCOR has an integrated governance system that considers the environmental, social and governance-related impacts, risks and opportunities of SCOR's business activities.
2. Good Governance
11 | 12 | Sustainability - social matters | Accounting, financial | |||
12 | 9 | Sustainability - environmental | and actuarial analysis | |||
Governance | ||||||
9 | matters | |||||
Innovation, technology and digital | SCOR's strategy | |||||
12 | DIRECTORS | Risk management | and economic model | |||
11 | Financial markets | |||||
Legislative and regulatory | ||||||
Knowledge of the insurance | ||||||
14 | requirements applicable to | |||||
10 | insurance and reinsurance | and reinsurance market | ||||
12 | companies |
ROLE & ACTIVITIES
OF THE BOARD'S COMMITTEES
SCOR's Board of Directors has established several advisory committees responsible for examining specific topics, preparing the Board's discussions, and making recommendations including on sustainability-related issues.
Sustainability Committee
The sustainability committee ensures that the Group's
deforestation, the P&C initiatives on treaties, insurance and facultative reinsurance and the annual UK and Australian Modern Slavery Act Statement.
Risk Committee
The Risk Committee is responsible for examining the major risks the Group is exposed to and for monitoring the alignment of the Group's risk profile with the Group's Risk Appetite Framework.
2.1. BOARD OF DIRECTORS' OVERSIGHTOFSUSTAINABILITY- RELATED ISSUES
As a global and independent reinsurer, the Group aims to embrace the best corporate governance practices as they play a crucial role in helping SCOR achieve its strategic objectives. Sustainability matters are studied and acted on at various levels of the Group. Led by its top governance
bodies, SCOR has formulated a group-wide sustainability strategy integrating all its activities and operations. Risks, opportunities, and impacts related to sustainability, including for climate, are subject to a governance structured around oversight, management, implementation, and coordination bodies. Only the activities relating to supervisory bodies in the areas of addressing and understanding sustainability matters are described in the following sub-sections.
ROLE AND ACTIVITIES
OF THE BOARD OF DIRECTORS
Under the conditions defined by the Board's Internal Charter, the Board of Directors defines the strategic orientations of the Group, ensures their implementation in accordance with its corporate interest, considering the
social and environmental aspects of its activity. It monitors management's performance and ensures the sound and prudent management of the Group.
Therefore, the Group's latest strategic plan includes a variety of orientations addressing sustainability matters, including
the impacts of climate change, in its activities and operations (e.g. supporting the energy transition or financing a sustainable world and committing to net-zero carbon by 2050).
The Board is regularly updated by Executive Management on the achievement of the orientations and is informed on forthcoming evolutions and trends that may be of interest for SCOR's business and activities. The Board meets at least four times a year.
As of 31 December 2023, twelve Board members have an expertise on sustainability-related matters, including on the environment (for detailed information refer to the 2023 URD - Section 2.1.3.2 - Information concerning the
members of the Board of Directors):
In 2023, the Board of Directors held thirteen meetings during which sustainability-related topics were discussed:
-
Review and approval of the Group's Climate strategy, including the new underwriting exclusion policies relat- ing to fossil fuels and the target to reach net-zero
emissions on operations by 2030; - Review and approval of the non-financial performance statement, included in the Universal Registration Document;
- Review and approval of the annual statement of the Company regarding the UK Modern Slavery Act;
- Review and approval of the 2022 Sustainability Report and the Sustainability Policy;
- Review and approval of the new feminization target within the Partnership program.
sustainability approach is consistent with its long-term development, and that the direct and indirect impacts of its activities on the environment and society are taken into account in its strategy. Drawing on the materiality analysis, the Committee examines the main sustainability-related matters the Group deals within its underwriting and investment strategies, when operating its business and when managing its human capital. It oversees the sustainability strategy and its consistency with SCOR's public commitments. The Committee is kept informed of major sustainability trends and in particular the timeline of sustainable finance regulations and their potential impacts on SCOR's sustainability strategy. It also oversees SCOR's sustainability performance through a yearly action plan and a quarterly dashboard as well as changes in SCOR's ESG ratings by selected rating agencies and SCOR's assessment by external stakehold-
ers, including non-governmental organizations .
In 2023, the Committee reviewed and approved the Group's various sustainability-related publications. It
reviewed the Group's proposed sustainable development ambitions (including the 2023 sustainable development action plan and follow-up of its implementations), the general framework and the main proposals for Forward 2026 strategic plan, before their approval by the Board of Directors. It monitored and reviewed key ESG performance indicators, including those related to the CEO's compensa- tion, as well as the evolution of the Group's ESG ratings.
The Sustainability committee has reviewed all new commitments related to climate mitigation for underwriting, investments and operations before approval by the Board of directors. Finally, it reviewed the policy to fight against
It examines the Group's main risks and its Enterprise Risk Management (ERM) policy. It also examines the Group's strategic risks (including emerging risks) as well as the Group's main technical and financial commitments (under- writing, reserving, market, concentration, counterparty, asset-liability management, liquidity and operating risks as well as the risks relating to changes in prudential regulations). The Risk Committee is kept regularly informed of the major environmental, social and governance issues that may influence the Group's activities, including the trends of global climate change and deterioration of the environment, and the associated emerging risks closely linked to these topics.
In 2023, the Risk Committee reviewed the Group's main
exposures and risks, including cyber risks and those related to climate change. It also reviewed the Group risk appe- tite, the interactions with regulators and monitored prudential regulations.
The Strategic Committee, the Audit Committee, the Nomination Committee and the Compensation committee also address sustainability matters. The Compensation Committee worked on further integrating sustainability-related criteria in the compensation policy of corporate officers, leading to a comprehensive and consistent compensation framework (see Section 2.4 - Performance conditions on social and environmental issues for further information).
For more information on the main activities of these Committees and their activities in 2023, see Section 2.1.4 - Board of Directors' Committees in the 2023 Universal Registration Document.
18 | SCOR | 2023 Group sustainability report | 19 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
SCOR SE published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 15:41:47 UTC.
