The Sustainability Framework consists of the following elements:
Mission: Argo’s core mission is focused on Sustainability and Resilience by ‘Helping businesses stay in business’.
Board Sponsor: Chair of Governance and Nominating Committee
Executive Sponsor: Group Chief Risk Officer
Committees: Argo Group established a Sustainability Working Group (SWG) in 2016 and is dedicated to the oversight of Sustainability and ESG policies, processes and issues facing the organization. The SWG, which is chaired by the Chief Risk Officer, meets on a quarterly basis and reports each quarter to the Enterprise Risk Management (ERM) steering committee.
The role of the SWG is formalized in its charter (view document) and it reports to the ERM steering committee which also has oversight of Sustainability in its charter (view document) and meets up to 8 times a year.
The CRO reports material Sustainability-related issues directly to the Board Risk & Capital Committee agenda on a quarterly basis.
Objectives and Plans: Argo Group has established short and long-term objectives with respect to its Sustainability program and these are reviewed and re-approved on an annual basis. The SWG tracks progress against these objectives and related action plans.
Risk Assessment: The SWG receives a detailed threat and opportunity analysis of the major Sustainability risks facing the organization every 6 months and escalates key issues to the ERM steering committee. The risk assessment considers both upside (opportunity) and downside (threats) risks that could impact Argo Group. Controls and action plans are documented.
Climate Change has been classified by Argo Group as one of its material emerging risks, and as such it is regularly monitored by the risk management function for the primary purpose of assessing the potential impact of climate change on Argo Group’s business operations, insurance products and clients. The Argo Group emerging risk monitoring process includes scanning available resources for information regarding climate change related current events, litigation, regulation, legislation, the political environment and industry groups’ actions that may have an impact on the Argo Group policies and/or strategies.