ALIGNMENT WITH UN SDGs
- Climate Change
- Resource Management
We recognise that climate resilience is essential to long‑term business sustainability. Our Zero Coal by 2030 commitment reflects our approach to managing climate‑related risks while identifying opportunities for sustainable growth. Building on our TCFD‑aligned foundations, we adopt the four pillars of IFRS S2 — Governance, Strategy, Risk Management, and Metrics & Targets — to guide our climate‑related disclosures, decision‑making, and progress tracking.
- Climate-related Risks & Opportunities
We integrate climate related risks and opportunities from both transition and physical drivers into our strategy, including solar related offerings, flood add on benefits, and pay as you drive products that support more sustainable customer behaviour. - Risk Appetite Statement
Our sustainability commitments prohibit exposure to coal, weapons, and tobacco, with no new coal based investments. We achieved zero coal exposure in underwriting in August 2023 and continue to progress towards zero coal exposure in investments. - Decarbonising Towards A Greener Portfolio
We are reducing hydrocarbon related exposures, maintaining strict sector exclusions, and allocating up to 10% of investments to ESG approved funds, while phasing out carbon intensive assets in future mandates. - Driving Engagement on Climate Change
We engage with corporate sectors and climate‑focused bodies to stay informed on regulatory developments and contribute to national climate policy discussions. - Promoting Sustainable Practices
We support customers in reducing emissions linked to insured activities, with a focus on managing climate risks within our Motor portfolio while maintaining sound risk management. - Climate-Related Scenario Analysis
We conduct scenario analysis across high risk and orderly transition pathways, including Net Zero 2050, and completed BNM required CRST assessments covering NGFS scenarios and extreme flood events, with insights informing capital planning, pricing, and risk management.
For short-term scenario analysis, our team factored in both physical and transition risks, considering a 1-in-200-year flood event as a physical risk and regulatory changes through potential national policy developments as a transition risk to evaluate their impacts on our portfolios.
Climate related risks are embedded into our enterprise risk management framework and assessed across all major risk categories, with governance oversight by senior management and SuCOM in line with BNM requirements.
- Managing Our Risks
We manage climate related risks through targeted mitigation measures and strong governance. As climate impacts such as flooding intensify, we continue to strengthen business resilience through frameworks aligned with BNM’s CRMSA and CRST requirements. - Integrating Climate Risks into Risk Management
Climate related risks and opportunities are embedded across our risk management processes, with oversight by senior management and review by SuCOM. This is supported by the Risk team, Sustainability Unit, and a dedicated climate project team to ensure effective governance and integration.
- Net Zero Roadmap
The Group targets a 50% reduction in Scope 1 emissions by 2030, a 50% reduction in Scope 2 emissions by 2040, and Net Zero emissions for Scope 1 and Scope 2 by 2050. - GHG Emissions
We have tracked GHG emissions since 2020 in accordance with the GHG Protocol. In 2025, our inventory was refined to include emissions from operational waste and business travel, and prior year emissions for 2023 and 2024 were restated based on updated emission factors.
Responsible resource stewardship underpins our sustainability agenda. Through focused initiatives on energy, water, paper, and waste, we reduce environmental impact while improving operational efficiency. Guided by our Group Sustainability Policy, we embed sustainable practices into daily operations, ensure compliance with environmental standards, and promote a culture of environmental responsibility across our workforce.
- Implement Earth Hour Fridays, encouraging employees to switch off non essential lighting and electrical appliances for one hour weekly (12.00 pm–1.00 pm).
- Adopt energy efficient LED lighting and responsible lighting practices across premises.
- Reinforce employee awareness through signage, digital screensavers, and engagement on Viva Engage to support daily energy saving behaviours.
- Implement water conservation initiatives supported by employee awareness signage in high traffic office areas.
- Install water saving devices, including self closing faucets at headquarters.
- Track water consumption across branches to support continuous improvement.
- Continue conservation practices at headquarters and Johor Bahru offices located within shared buildings, despite data exclusions.
- Minimise paper usage by transitioning to digital processes, including e policy documentation, online forms, e billing, and digital collaterals.
- Encourage use of recycled paper when printing is required.
- Configure printers to duplex and grayscale settings by default.
- Promote paperless working practices while maintaining operational effectiveness.
- Encourage recycling through designated recycling points for paper, plastic, metals, batteries, light bulbs, and e waste.
- Maintain the prohibition of single use plastic bottles at headquarters meetings.
- Promote the use of reusable containers and utensils to minimise waste at source.
