Challenge

Crowe UK worked with a Lloyd’s managing agent to undertake a climate materiality assessment, identifying the areas of significance to their business and stakeholders.

Solution

• Developed a comprehensive list of climate-related issues, including to reflect relevant regulatory initiatives, both effective and incoming. While we would typically also consider social and governance factors, the client requested a specific focus on climate change.
• Developed and agreed a list of key stakeholder groups to be considered during the assessment and identified internal proxies to understand fundamental drivers and concerns, in line with the agreed approach.
• Facilitated workshops with the Chief Strategy Officer, Chief Risk Officer, and Chief Investment Officer to complete an initial assessment of significance, including breaking out relevant factors to individually consider operations, investments, underwriting and individual lines of business, where relevant.
• Considered feasibility and effort of associated activity to help when prioritising and planning work.
• Plotted assessment outputs on a materiality grid for reporting and approval by the Executive and the Board.
• Developed a climate roadmap and completed nearer-term planning based on a prioritised view of what was required to be delivered.

Outcome

The materiality assessment enabled the client to prioritise their climate work with the confidence that they had their arms around everything and that they were focused in the right areas.

A top-down view also supported decision-making in respect of resourcing and their operating model.