GHG Emissions, Commercial, Finance - July 5, 2023
Travelers Companies Lowers Emissions by 55%
The Travelers Companies, Inc. lowered its Scope 1 and Scope 2 emissions by 55% since 2011, reinforcing its commitment to become carbon neutral across its owned operations by 2030.
The insurance company is a large investor in municipal bonds, providing funding to approximately 950 different municipal issuers across the U.S. These bonds include $2.8 billion in fixed-income securities classified as “green,” “sustainability,” and “sustainability-linked” bonds by Bloomberg L.P. and support water and sewer projects ($5 billion), K-12 education ($10 billion), and higher education ($4.2 billion).
Travelers published details in its 2022 Sustainability Report, which features a number of corporate initiatives as well as the company’s latest reports consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) Insurance Industry Standard.
“We take a holistic approach to sustained value creation by managing the risks and capitalizing on the opportunities associated with a broad array of economic, operational, environmental, social and governance factors relevant to our company and industry,” said Yafit Cohn, Chief Sustainability Officer at Travelers, in a statement. “Our report showcases this thoughtful approach, which we believe helps us create inclusive prosperity.”
Travelers also expanded its TCFD Report to include enhanced disclosure with respect to the composition of the company’s investment portfolio, including a quantification of the GHG emissions for the portion of the portfolio where some data is available, as well as a discussion of the company’s multi-pronged approach to addressing financial risks posed by GHG emissions on its investment portfolio.
The report provides disclosures regarding the composition of the company’s business mix as it relates to the energy industry and includes an alternative view to understanding the GHG emissions related to the company’s underwriting portfolio by disclosing the company’s premiums over time with respect to the four most carbon-intensive sectors as classified by Standard & Poor’s, which have consistently represented a very low percentage of the company’s underwriting portfolio and have meaningfully declined over time.
In addition, Travelers’ latest TCFD Report discusses the company’s ongoing efforts to pursue business related to renewable energy. The company’s Global Renewable Energy Practice, which is designed to facilitate innovation and the growth of renewable energy businesses, has grown at a compound annual rate of 27% over the past four years, with revenue up more than 107% since 2019.