Centene : CDP Response Excerpt 2022

Ce nte ne Co rpo ration - Climate Change 2022

This document is an excerpt of Centenes response to the 2022 CDP Climate Change survey. Sections of the survey not referenced in our 2022 TCFD Index have been removed for ease of use.

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Please explain
individual(s)
Board-level	Environmental and Social Responsibility Committee The Board of Directors oversees the execution of the Company's enterprise risk management (ERM) framework with assistance provided by
committee	Board committees. The Environmental and Social Responsibility (ESR) Committee of the Board is responsible for oversight of sustainability matters. In addition, the Board is informed of emerging
	risks and opportunities, including environmental and climate-related issues that could impact the Company's risk profile. Due to the growing importance of climate-related risks and other
	environmental, social and governance (ESG)-related topics, Centene's Board of Directors decided to form the ESR Committee to assist the Board in the development of strategic plans related to
	issues of environmental and social importance, which includes climate-related risks. The ESR Committee meets on a regular basis and reviews reports on Management's progress towards identifying
	and addressing climate-related risks and opportunities, updates on key environmental and social responsibility efforts, updates on ESG rater and ranker scores, and the status of associated goals
	and objectives. The ESR Committee reports to the full Board and provides recommendations on environmental and social related matters, as necessary. The ESR committee includes the Chairman
	of the Board.
Board Chair	The Chairman of the Board also chairs the Environmental and Social Responsibility committee.

C1.1b

(C1.1b) Provide further details on the board's oversight of climate-related issues.

Frequency	Governance	Scope of	Please explain
with	mechanisms	board-
which	into which	level
climate-	climate-	oversight
related	related issues
issues are	are integrated
a
scheduled
agenda
item
Scheduled	Reviewing and	<>	Centene's governance structure and its oversight of climate-related risks and opportunities plays a critical role in ensuring the Company's continued fulfillment of its mission
- all	guiding	Applicabl	and its future success. In fulfilling our commitment to delivering high-quality health services to at-risk populations, we recognize that some of our members and their families
meetings	strategy	e>	are particularly vulnerable to experiencing the most harmful impacts of climate change. Our corporate, local health plan, and business unit leadership are engaged in
	Reviewing and		discussions to closely monitor climate-related risks and their potential impact on the members we serve. We are continually assessing climate-related risks across the
	guiding major		geographies we serve. Centene's Board of Directors ("the Board"), through its various Board committees, fosters sound risk management oversight and effective corporate
	plans of action		governance to ensure the Company creates sustainable long-term value for stakeholders. The Company's structure, policies, and procedures support the Board's
	Reviewing and		commitment to effective governance, transparency, and accountability. The Board of Directors oversees the execution of the Company's enterprise risk management (ERM)
	guiding risk		framework with assistance provided by Board committees. The Environmental and Social Responsibility (ESR) Committee of the Board is responsible for oversight of
	management		sustainability matters. In addition, the Board is informed of emerging risks and opportunities, including environmental and climate-related issues that could impact the
	policies		Company's risk profile.
	Reviewing and
	guiding annual
	budgets
	Reviewing and
	guiding
	business plans
	Setting
	performance
	objectives
	Monitoring
	implementation
	and
	performance of
	objectives
	Overseeing
	major capital
	expenditures,
	acquisitions
	and
	divestitures
	Monitoring and
	overseeing
	progress
	against goals
	and targets for
	addressing
	climate-related
	issues

C1.1d

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(C1.1d) Does your organization have at least one board member with competence on climate-related issues?

	Board	Criteria used	Primary	Explain why your organization does not have at least one board member with competence on climate-related issues and any plans to address board-
	member(s)	to assess	reason for	level competence in the future
	have	competence	no board-
	competence	of board	level
	on climate-	member(s) on	competence
	related	climate-	on climate-
	issues	related issues	related
			issues
Row	No, and we	<>	Important but	Centene has assessed potential risks and opportunities posed by climate change to our organization and stakeholders. For climate-related issues facing the
1	do not plan	Applicable>	not an	organization, we have determined that those with the potential to have a material impact are either not likely in the near-term, or the near term effects are
	to address		immediate	sufficiently mitigated. We believe our current board members can provide oversight of these types of risks and their mitigations. For example, our current board
	this within		priority	members have the competence to provide oversight of actuarial soundness of pricing in response to the risk of increased medical costs caused by climate
	the next two			change, and diversification of investments both in type and duration in response to the risk of carbon impacts on our portfolio. Therefore, we do not have plans to
	years			add board members with competence on climate-related issues in the near term.

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s)	Reporting	Responsibility	Coverage of	Frequency of reporting to the board on climate-
	line		responsibility	related issues
Other committee, please specify (Management Oversight	<>	Both assessing and managing climate-related risks and		Quarterly
Committee)	Applicable>	opportunities

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

Management is responsible for executing day-to-day risk activities and ensuring that risk consideration is integrated with strategic decision-making and financial budgeting processes. Management remains informed and monitors climate-related issues through the Management Oversight Committee (MOC), quarterly environmental, social, health, and governance (ESHG) and ERM reports, as well as via climate-related risk discussions with staff from various functional areas across the Company. These reports and discussions are designed to provide visibility into the identification, assessment, monitoring and management of critical risks, including climate-related risks.

The MOC is a cross-functional governance group, chaired by the CEO, and comprised of members of the executive leadership team. The MOC assists the Board of Directors in its oversight responsibilities for risk management and oversees the process used to identify, assess, respond, and report on risk issues, including climate-related and environmental issues. Quarterly ERM and ESHG reporting is prepared by the ERM and ESHG team and provided to the MOC, which meets at least four times per year. The MOC reviews and provides feedback for the ERM and ESHG reports to ensure the information provided is clear, concise, and accurate prior to sharing with the Board and the ESR Committee, respectively.

The ERM/ESHG and Facilities teams lead environmental sustainability initiatives, tracking/reporting progress and assessing opportunities for target setting. The ERM/ESHG team is led by the VP ERM, reporting to the Chief Compliance Officer. The VP ERM leads Centene's efforts to identify, assess, and report climate-related risks as well as determine functional area risk management responsibilities. The Facilities team is led by the VP Real Estate & Workplace Resources, reporting to the Chief Administrative Officer, who has direct responsibility for functions that directly address Centene's enterprise energy consumption and carbon emissions inventory; specifically, facilities and real estate management and aviation operations.

C2. Risks and opportunities

C2.1

(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?

Yes

C2.1a

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(C2.1a) How does your organization define short-, medium- and long-term time horizons?

	From	To	Comment
	(years)	(years)
Short-	0	1	Estimating a time horizon for Centene's climate-related issues is challenging. Regardless of industry, climate forecasting requires looking far into the future and the resulting effects are
term			difficult to predict. As a multi-national healthcare enterprise focused on services to government sponsored and commercial healthcare programs, we need to consider all our stakeholders
			-members,direct-care consumers, providers, government partners, employees, and shareholders-as we consider our risks and opportunities, and our ability to manage them. The
			time horizon of our climate-related issues may be impacted by broader business risks such as strategic, operational, legal, pricing/underwriting, reserving, reputational, credit, liquidity,
			and others. For our initial assessments, we have taken the approach of defining time horizons aligned with our ERM and business and strategic planning processes. While somewhat
			shorter in nature, we believe these definitions are also consistent with the useful life of the Company's assets. The TCFD expects that reporting of climate-related issues will evolve over
			time as organizations, investors, and others contribute to the quality and consistency of the information disclosed. We will continue our efforts to assess and adapt to these challenges as
			we move forward.
Medium-	1	5	Estimating a time horizon for Centene's climate-related issues is challenging. Regardless of industry, climate forecasting requires looking far into the future and the resulting effects are
term			difficult to predict. As a multi-national healthcare enterprise focused on services to government sponsored and commercial healthcare programs, we need to consider all our stakeholders
			-members,direct-care consumers, providers, government partners, employees, and shareholders-as we consider our risks and opportunities, and our ability to manage them. The
			time horizon of our climate-related issues may be impacted by broader business risks such as strategic, operational, legal, pricing/underwriting, reserving, reputational, credit, liquidity,
			and others. For our initial assessments, we have taken the approach of defining time horizons aligned with our ERM and business and strategic planning processes. While somewhat
			shorter in nature, we believe these definitions are also consistent with the useful life of the Company's assets. The TCFD expects that reporting of climate-related issues will evolve over
			time as organizations, investors, and others contribute to the quality and consistency of the information disclosed. We will continue our efforts to assess and adapt to these challenges as
			we move forward.
Long-	5	10	Estimating a time horizon for Centene's climate-related issues is challenging. Regardless of industry, climate forecasting requires looking far into the future and the resulting effects are
term			difficult to predict. As a multi-national healthcare enterprise focused on services to government sponsored and commercial healthcare programs, we need to consider all our stakeholders
			-members,direct-care consumers, providers, government partners, employees, and shareholders-as we consider our risks and opportunities, and our ability to manage them. The
			time horizon of our climate-related issues may be impacted by broader business risks such as strategic, operational, legal, pricing/underwriting, reserving, reputational, credit, liquidity,
			and others. For our initial assessments, we have taken the approach of defining time horizons aligned with our ERM and business and strategic planning processes. While somewhat
			shorter in nature, we believe these definitions are also consistent with the useful life of the Company's assets. The TCFD expects that reporting of climate-related issues will evolve over
			time as organizations, investors, and others contribute to the quality and consistency of the information disclosed. We will continue our efforts to assess and adapt to these challenges as
			we move forward.

C2.1b

(C2.1b) How does your organization define substantive financial or strategic impact on your business?

The Inherent Risk Impact & Likelihood Assessment Guide used for assessing risks includes considerations for strategic, financial, compliance, and operational risks with impacts ranging from minimal to critical. Risks with potential for substantive financial or strategic impacts are those risks that could result in a material impact on revenues, expenses, other financial metrics, or significant reputational damage with contagion effects on other business units which could lead to an inability to achieve organizational goals or initiatives.

C2.2

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(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities. Value chain stage(s) covered

Direct operations

Upstream

Downstream

Risk management process

Integrated into multi-disciplinarycompany-wide risk management process

Frequency of assessment

More than once a year

Time horizon(s) covered

Short-term

Medium-term

Long-term

Description of process

IDENTIFYING AND ASSESSING CLIMATE-RELATED RISKS Centene's ERM risk identification and assessment process is reflective of both a top-down and bottom-up approach. On a quarterly basis, enterprise-wide as well as business unit risks are identified and assessed with the assistance of the Company's "Risk Champions." These are senior executives and other leaders from across all significant functional business areas of the Company who have been charged with working with their teams to identify and communicate risks to objectives and provide risk oversight and monitoring duties at the corporate and/or business unit levels. As a function of this process, Centene maintains a risk register to document the various risks faced by the Company, including descriptions of the impact, mitigation actions, and risk owners. All significant climate-related risks and opportunities are captured within the enterprise risk register. The ERM team also monitors emerging risks and opportunities and prepares a quarterly report submitted to the Management Oversight Committee and the Board. The emerging risk and opportunities report captures a variety of risk information. Through coordination with the ESHG Workgroup, Climate Change Task Force (CCTF) and ESHG team, the ERM team captures environmental and climate- related risks. The Company formed a cross-functional stakeholder group called the CCTF at the end of 2020 to facilitate the identification of potential climate-related risks and opportunities and engaged an external consultant to provide overall guidance. The first significant step in the process was to conduct a climate risk identification workshop in 2021. The identification of Centene's climate-related risks and opportunities required the Company to "connect the dots" on how climate drives exposures which, in turn, drive certain health outcomes. The CCTF discussed the climate drivers, exposure pathways, and health outcomes identified by the participants in the workshop to educate and inform on the linkages between climate and potential impacts to health. In 2022, we undertook a similar process to update our climate risk scenario analysis. In preparation for the 2022 climate risk workshop and meetings, we conducted research to update our presentation materials with the most current and relevant data. The objective of the first 2022 workshop we conducted with the full cross-functional group of participants was primarily to determine the continued relevance of the risks and opportunities identified in 2021, as well as brainstorm any potential risks or opportunities we had not previously considered. We utilized automated voting software to collect responses from the participants in the workshop. All polls resulted in confirmation that the risks and opportunities previously identified were still considered relevant to Centene, and we identified several new potential risks and opportunities to consider in the following stages of the process. The Company used the results of this year's workshop as an input for the subsequent scenario analysis functional meetings. During these meetings, the ESHG team met with small groups of Centene employees and leaders, based on subject matter expertise, to further assess the significance of Centene's climate risks and opportunities under two RCP scenarios. The ESHG team updated the discussion materials ahead of each meeting, and as part of this research concluded the Company would utilize updated scenarios. As a result of the research published in the latest IPCC Assessment Report (the 6th), we decided to update our two scenarios to RCPs 7.0 and 2.6 as scenarios for low and high climate intervention, respectively. The accompanying Shared Socioeconomic Pathways we chose were SSP3 and SSP1, respectively, consistent with those included in the 6th Assessment Report. While the Assessment Reports do not comment on the likelihood of any one scenario over another, we wanted to align our scenarios to those included in the most recent report in an effort to be most aligned with the available research supporting them. We utilized automated voting software to collect responses regarding the likelihood and potential impact of climate risks and opportunities from the participants in each of these discussions. The results of those votes were tabulated and compiled to inform the significance of each risk or opportunity to Centene. ERM INTEGRATION The Company's ERM framework specifically captures various risks within the risk register, such as business continuity and pandemic related risks where the key drivers influencing the scoring of these risks may be associated with climate change. Examples include weather-related events that may impact Company operations and the health of members, and the possibility that climate change may give rise to an increase of certain viruses and airborne allergens and pollutants, leading to increased respiratory illnesses such as chronic obstructive pulmonary disease and asthma. All significant enterprise risks, including those that have climate change as a driver, are highlighted in the quarterly ERM report that is presented to the MOC and the Board of Directors for review and monitoring. Centene has identified climate-related risks as part of its ERM process and modeled internal and external impacts from environmental risks within its annual Own Risk and Solvency Assessment (ORSA) since 2016. Through its frequent communications with management, the ERM team maintains a listing of all risks posed to the organization. The enterprise-wide risk register is comprised of the most significant risks rated by impact and likelihood. Each of these risks is associated with a primary functional area such as Finance, Medical Affairs, Business Development, and others and maintained in our enterprise governance, risk, and compliance application. Centene intends to continue the workshop approach described here to periodically update climate-related risks and opportunities. As a result of the initial climate risk workshops we conducted, we added a new risk to specifically address climate change in the enterprise risk register. Additionally, functional areas across the organization individually assess and manage the various elements of climate risk. For example, Operations will assess and manage the risk of extreme weather events disrupting member services and Finance will assess and manage the risk of climate change on the value of our investments. This approach enables full integration of climate risks and opportunities into the overall risk management process, as well as singular ownership and accountability at the functional level by Compliance.

C2.2a

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