At Chubb, we recognize our responsibility to provide solutions that help clients manage environmental risks, to reduce our own environmental impact and to make meaningful contributions to environmental causes.
With operations in 54 countries and territories, 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. In 2019, the company earned a score of B on the CDP’s climate change program ranking.
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 June 2018 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 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 address the environment, human rights, labor and anti-corruption.
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.
A primary objective of Chubb’s environmental program is to measure, record and reduce greenhouse gas (GHG) emissions in the company’s own operations.
In May 2019, Chubb announced a new companywide goal to reduce its global greenhouse gas (GHG) emissions 20% on an absolute basis by 2025. The company also established a long-term goal to reduce absolute GHG emissions 40% by 2035. Both goals use 2016 emissions levels as the baseline. Chubb's goals are aligned with the two-degree Celsius target outlined in the Paris Climate Agreement, as well as the quantitatively supported science-based standards methodology of the United Nations Environmental Program.
This is the third GHG emissions reduction commitment the company has undertaken since launching its corporate environmental program in 2006, and the first that adheres to science-based standards. From 2006 to 2012, the company reduced GHG emissions nearly 27% per employee, substantially exceeding its original target of 8% per employee. A new goal was set in 2014. From 2015 to 2018, a period that included the acquisition, Chubb reduced its absolute global GHG emissions by 21%. By 2035, the impact of the company's continued focus on energy efficient operation programs will result in the emissions reduction of nearly 45,000 metric tons of CO₂ equivalent per year.
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.
Chubb recognizes the reality of climate change and the substantial impact of human activity on our planet. Chubb’s commitment to do its part as a steward of the Earth is reflected in the company’s policy concerning coal-related underwriting and investment, which was adopted on July 1, 2019. With the new policy, the company will no longer underwrite the construction and operation of new coal-fired plants or new risks for companies that generate more than 30% of their revenues from coal mining or energy production from coal. Insurance coverage for existing coal-plant risks that exceed this threshold will be phased out by 2022, and for utilities beginning in 2022. In addition, Chubb will not make new debt or equity investments in companies that generate more than 30% of revenues from thermal coal mining or energy production from coal.
The Chubb Corporate Environmental Program is now in its fourteenth year. Chubb remains committed to communicating important information about the company’s environmental initiatives to our clients, shareholders, employees, business partners, the communities where we operate and others who have an interest in our company, our industry and the environment. Our Annual Environmental Report outlines the full scope of the company’s environmental program and initiatives.