Governance Financial Statements
Strategic Report
45
Focus Areas
Frequency
Chair/Owner
13. Sustainability Bond Forum
Reviews the assets eligible for allocation to green and sustainability bonds.
Quarterly
Chief Risk Officer
14. Executive
Oversight and approval of the implementation of various sustainability initiatives across the Group and recommends items to the GEC and other committees as appropriate. Reviews the appropriateness and clarity of climate-related disclosures. Monitors the status of various sustainability initiatives and risks, reporting into the Executive Sustainability Steering Committee. Act as a forum for the sharing of knowledge relating to existing and future sustainability related activities, market and regulatory developments. Seek approval from the Executive Sustainability Steering Committee for new initiatives or proposals for changes.
Quarterly
Chief Risk Officer
Sustainability Steering Committee
15. Sustainability Working Group
Monthly
Sustainability Manager/Head of Responsible Investment
RISKS AND OPPORTUNITIES RISK MANAGEMENT AND STRESS AND SCENARIO TESTING ANALYSIS
Scenario analysis remains a key tool for ensuring we have a deep understanding of the risks the Group faces over a long-term time horizon. Three Network for Greening the Financial System (“NGFS”) scenarios were used again for 2024. For measuring the impact of climate change on our LTM portfolio, we also use a specific set of scenarios using the Representative Concentration Pathway (“RCP”) for assessment of physical risks and assuming that a minimum EPC rating of C is implemented by government for assessment of transition risks. The management, identification and disclosure of climate-related risks and broader sustainability risks are key for Just. We recognise that the potential impact from these risks may influence Just’s strategy. We also recognise that sustainability and climate-related risks impact many of the other types of risks faced by Just, such as credit, market, operational, reputational, compliance and legal. The management of sustainability and climate change risk are embedded within Just’s risk governance and management structures and reflected within Just’s Enterprise Risk Management Framework as both a cross-cutting risk (a risk theme) and also as a risk in its own right. Within Just’s risk management system, controls are linked to both the core risks and sustainability and climate change risk. This ensures that the relevant business area remains responsible for managing the risk, whilst also allowing visibility by the Group Sustainability team. Stress and scenario testing is used to deepen our understanding of the risks the Group faces and establish which risks could become more prominent in certain scenarios. From this we better understand what early warning indicators we may need to be looking out for and what management actions we can take; both now to help prevent the risks from materialising or weaken their impact upon the business if they did materialise, and what actions we may want to take in the future. Assessing the risks in this way can also help to uncover the opportunities for
us as we transition to a net zero world. SUMMARY OF KEY OPPORTUNITIES
The opportunities to Just are emerging as we develop our sustainability strategy and undertake further work to assess our business from a sustainability perspective. We believe that certain opportunities have the potential to materially impact our business by increasing revenue, while others, although not as impactful, could still offer positive financial or societal benefits.
Material Impact
Link to Just’s strategic objectives
Opportunity
Timescale
Group: The increased opportunity to influence and support the transition to net zero by engaging with asset owners, managers, suppliers, policy makers and other market initiatives. This will support a market-wide transition which aligns with broader net zero commitments. Investments: Emerging technology and innovation are seen as potential investment opportunities. New products available via external asset managers, which focus more specifically on climate and sustainability objectives, represent an opportunity to provide diversification across our investment portfolio. Defined Benefit: There are opportunities to support a diversified client base of scheme trustees in achieving their responsible investment and climate change goals. Additionally, as ESG considerations become increasingly important for trustees when choosing an insurer, we have the opportunity to position ourselves ahead of the market. LTMs: There is an opportunity to provide more support to our customers to help them make their homes more energy efficient and to access affordable borrowing with the need increased due to continued higher energy costs. This could lead to an improvement of the EPC rating of our property portfolio and a reduction in energy costs for our customers. As part of this, we are also exploring a retrofitting proposition to help customers access lending or direct them to grants for specific retrofitting needs. Retail: New products are emerging in the market that focus on responsible investment and ‘green’ products. We are considering how best to further enhance our approach and products and services.
<5 years
No
<5 years
No
<5 years
Yes
<5 years
No
5 – 10 years Yes
STRATEGIC PRIORITIES Grow sustainably
Scale with technology
Reach new customers
Be recommended by our customers
Be proud to work at Just
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