Climate and nature

Climate change affects the nature. There is now increased attention to nature risks, how natural areas are disposed of, and how pressures on biodiversity can be reduced. In Gjensidige, we are working to strengthen our efforts so that we can contribute further to reducing natural risk.

We have started mapping the impact of our operations on nature. Among other things, we collect data on how much materials we use when compensating claims. This informs us about how much  natural resources we use. We therefore want to reduce our use of materials and waste, also to reduce natural risks.

 

Here are some of our measures:

• Our goal is that 80 per cent of our premiums that can be linked to the EU taxonomy should come from insurance products that are qualified according to the taxonomy criteria for sustainable general insurance.
• We use our purchasing power to reduce greenhouse gas emissions at the purchasing stage: We strive for less material use and waste generation through increased reuse of car parts and building materials. Gjensidige's goal is to reduce greenhouse gas emissions from our claims settlements by 35 per cent by 2025, compared with 2019. 
• We aim to achieve net zero emissions in our investment portfolios by 2050.
• We cut greenhouse gas emissions in our own operations, including through more energy-efficient offices and less business travel. Our goal is to achieve a 75 per cent reduction in greenhouse gas emissions from our own operations by 2025, compared with 2019.

In 2022, we committed to setting scientific targets to cut our greenhouse gas emissions by signing the Science Based Targets initiative (SBTi). We will now prepare scientifically based targets for emission cuts in the investment portfolio as quickly as possible, and then continue with our own operations and our claims processes. 

The EU legislation on the classification (taxonomy) of sustainable activities aims to create a common interpretation of what can be called sustainable.  Listed companies with more than 500 employees must report from the 2022 financial year what proportion of the company's turnover and investments can be classified as sustainable. From fiscal year 2023, the same companies must report their share of revenue and investments classified as sustainable.

As one of the first listed non-life insurance companies, Gjensidige has already reported a green fraction for insurance for 2022.

Gjensidige's first report according to the Commission Delegated Regulation (EU) 2021/2178 (supplementing the EU taxonomy regulation), ANNEX X Template for KPIs of insurance and reinsurance undertakings

Gjensidige uses these regulations as a basis when we further develop our products in a sustainable direction. Read more in our annual report.

Here is an overview of the criteria in the taxonomy for general insurance and our work related to these:

1. Excellent modelling with pricing of climate risk 
   Gjensidige has extensive experience in dealing with loss caused by weather events and climate risk. We use sophisticated modelling as a basis for our pricing. Climate change will increasingly expose us to other types of risk than before. As an insurance company, we are affected by various forms of climate risk, not least compensation for loss caused by weather events. We are now working with the Norwegian Computing Center to combine loss data with climate data, thereby increasing insight into the connection between climate change and loss. 

2. Product Design 
   Gjensidige motivates customers to implement risk-reducing measures, as reflected in the pricing of the products. Among other things, discounts are given for loss reduction measures. 

3. Innovative insurance cover 
   For us, there is a risk associated with society's green transformation. These changes represent uncertainty about customer behaviour while creating new opportunities. There is therefore a need to further develop our products so that we stimulate more sustainable practices, both among private and business customers. Here we have a good starting point in our work with product development, including the new conditions for commercial buildings that were launched in 2020, where one condition was providing a reward for customers who rebuild buildings with BREEAM certification after damage. In the third quarter, we have also adjusted the terms of home content insurance and travel insurance for our young customers (the product UNG insurance).  The adjustment includes compensation for greenhouse gas emissions caused by the claims compensation, and has been carried out through the purchase of Gold Standard (GS 1385) CER climate certificates supporting a project to distribute clean-burning cook stoves in Ghana. 

4. Requirement to share claims data 
   Gjensidige already shares knowledge about the consequences of climate change with public authorities in Norway on an annual basis, and when requested in Denmark and Sweden. We do this to help ensure that society is better equipped for future climate change.  

5. Claims settlement processes must be satisfactory, and arrangements must be in place to ensure good processes in the event of major weather events, and as a result of increased consequences of climate change 
   Gjensidige has the highest standards for handling natural disasters, to ensure that our customers receive the necessary assistance. Furthermore, we aim to reduce material use and waste generation in our claims handling processes. Therefore, we support recycling and circular economy, as well as safeguarding workers' rights in our own organization and with our suppliers.