Chubb’s annual Environmental Report outlines the full scope of the company’s environmental program and initiatives. The report addresses:
Chubb reports to the CDP on an annual basis by disclosing climate change risks and opportunities as well as emissions performance. In addition, a third-party certified environmental statement on the company’s GHG emissions program is included in the company’s annual report.
With operations in 54 countries, Chubb’s business and operating models are exposed to the full impact of global climate change. In our business, Chubb is committed to developing insurance products and risk management services that facilitate market-based solutions to current and pending environmental and climate-related issues.
Chubb makes sustainability and preservation a high priority, integrating environmentalism into many aspects of our business from our products and services to our day-to-day operations as well as within our philanthropic commitments.
Approach to Managing Risk
Because the potential physical effects of climate change present a significant risk to the company, they have been integrated into Chubb’s overall risk management process. Standard & Poor’s rating of Chubb’s enterprise risk management process as “Strong” in its May 2015 ERM rating report places the company among the top 20% of North American and Bermuda insurers. Our approach to risk management is to identify all known and emerging risks that could have an impact on overall capital levels and financial results.
Chubb has been a pioneer in developing advanced environmental insurance solutions, including coverages for premises-based exposures, contractors’ and project pollution liability, renewable energy, clean tech and environmental cleanup projects, as well as “green building” consulting services and a property policy that enables greener rebuilding after a loss.
Chubb’s role in mitigating supply chain and global operations risks through its risk engineering services helps organizations identify climate-related exposures and provides risk management expertise to help manage environmental challenges caused by climate change.
Carbon Emissions Reductions
A primary objective of Chubb’s environmental program is to measure, record and reduce greenhouse gas (GHG) emissions in the company’s own operations. Between 2006 and 2012, a period that preceded ACE Limited’s January 2016 acquisition of The Chubb Corporation, GHG emissions at ACE were reduced 27% per employee, far exceeding the original goal of an 8% reduction per employee. In 2014, ACE set a new companywide goal to reduce GHG emissions 10% per employee by 2020 from a 2012 base year. Through 2015, the company has achieved a decrease in emissions of 5.3% per employee from the 2012 base year.
Chubb is committed to reducing its overall environmental impact and plans to announce an updated GHG reduction goal for the combined company in 2017. The company will continue to deploy successful approaches for GHG emissions reduction, including installing energy-efficient lighting and equipment and more efficient use of office space.
The environment is a priority in Chubb’s corporate philanthropy. Chubb supports communities around the world in which our employees live and work through our established philanthropic entities and via company-sponsored volunteer initiatives. For example, grants from Chubb’s charitable foundations have helped preserve sensitive lands and habitats across the U.S. and around the world, finance “green” business entrepreneurs, and support educational programs that promote a healthy and sustainable environment.
In 2016, the company earned a score of A- on the CDP’s climate change program ranking. Chubb was also one of only 22 insurers – out of 148 analyzed – to earn a “High Quality” designation for the comprehensiveness of its climate risk disclosures by Ceres, the nonprofit sustainability organization.
UN Global Compact Signatory
Chubb is a member of the United Nations Global Compact, the world’s largest corporate sustainability initiative. As a signatory, Chubb has committed to aligning its business operations with the Compact’s 10 principles which include the areas of the environment, human rights, labor and anti-corruption.
Established in 2000, the UN Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles. Key components to committing to the Compact are public accountability and transparent disclosure of sustainability alignment efforts. To document our progress and commitment, Chubb will file annual reports, known as “Communications on Progress,” on our work toward implementing the 10 principles into our everyday business strategies.