The Sustainability Working Group receives a detailed threat and opportunity analysis of the major sustainability risks facing the organization every six months and escalates key issues to the Enterprise Risk Management (ERM) Steering Committee. The Chief Risk Officer reports material sustainability-related issues directly to the Board Risk & Capital Committee on a quarterly basis as required. Material threats and opportunities tracked by the Sustainability Working Group currently include:
- ESG Indices – recognizing the growing influence of ESG ratings on shareholder perceptions and keeping pace with disclosure expectations by enhancing our communication.
- Climate change – classified by Argo Group as one of its material emerging risks, climate change is regularly monitored by the risk management function to assess its potential impact on the company’s business operations, insurance products and clients.
- Diversity & Inclusion – ability of Argo Group to attract and retain the talent it needs to grow and develop its business, particularly related to its innovation and digital strategies. This is a key feature of our Human Resource strategy and an area of focus for the company,
- Data Protection and Information Security – our dependency on information technology creates an exposure to cyberattack and potential loss of confidential information and our cyber protection program is constantly adapting to this threat landscape.
- Governance – ensuring that corporate governance and executive remuneration practices keep pace with developing international best practice standards and stakeholder expectations.