6

As an international insurer and reinsurer, we regularly witness first-hand the impacts of a rapidly changing climate on our customers and communities. We view climate change as a material risk for our business, as well as the driver of innovation and new opportunities. We are well aware of the acute and chronic physical risks of climate change, as well as the transition, regulatory change, liability and other risks associated with changes in policy, laws, technology and markets.

We support the Paris agreement, which unites 195 countries in a single agreement to each restrict temperature rises in this century to well below 2°C to mitigate against the impacts of climate change. Our role is to financially protect people and their assets, support recovery efforts when catastrophes occur and reduce the economic and social impacts of climate change on our customers and communities. We accept scientific evidence and assessments made by the Intergovernmental Panel on Climate Change. Our operational carbon emission reduction target is a science-based target that has been calculated in line with the most ambitious decarbonisation scenario, which is the 1.5°C scenario.

We are committed to identifying, managing and disclosing our climate-related risks and opportunities in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In 2020, we focused on expanding our scenario analysis and embedding it into our strategic and business processes, as well as selecting relevant metrics and targets for our material climate risks. Our TCFD disclosures can be found in our Annual Report.

QBE is the first Australian headquartered insurance company to join RE100. RE100 brings together the world’s most influential businesses committed to 100 per cent renewable electricity and accelerate change towards zero carbon grids, at a global scale. We remained carbon neutrality and achieved our energy use, air travel and science-based emission reduction targets ahead of time. Our progress towards achieving these targets is reported in our annual Sustainability Report.