Just group PLC | Annual Report and accounts 2022
SUSTAINABILITY STRATEGY: TCFD DISCLOSURE FRAMEWORK
Strategic overview We have built our sustainability strategy around the United Nations Sustainable Development Goals (“UNSDGs”) and three guiding themes: making a positive impact, leaving a responsible footprint and creating a fair world. The strategy is aligned to the UNSDGs where we believe we can make the most difference and play our part in leaving a positive legacy to the world. Last year Just made a commitment to reach net zero in its near term target, own emissions (scope 1 and 2) by 2025 and all other emissions (scope 3) by 2050 with a 50% reduction in the latter emissions by 2030. This commitment aims to align with the road map published by the Association of British Insurers (“ABI”) in summer 2021 on behalf of the insurance industry. We have since committed to the Science Based Target Initiative and plan to submit our targets by 2024. Our key strategic outcomes for 2022 were to understand our emissions baseline and take steps towards planning our transition to net zero. Understanding our baseline enables robust reporting on our progress to net zero. To do this we have improved the coverage of emissions across scope 3 emissions by using third party data for actual and proxy emissions, where necessary.
STRATEGY AND GOVERNANCE The Taskforce on Climate-related Financial Disclosures (“TCFD”) was established by the Financial Stability Board to develop recommendations to enable a better understanding of climate-related risks and opportunities. The TCFD recommends that companies provide information about their governance, strategy, risk management, metrics and targets in relation to climate change. Disclosures consistent with TCFD recommendations about the potential implications of climate change for Just are included in this report with the following exceptions: Strategy recommendation disclosure (b): a methodology to model the potential financial impacts of climate change on our illiquid credit portfolio has not yet been established for the reasons stated in the section headed “Illiquid investments.” We have carried out deeper analysis on the investment portfolio, where information was available. To progress this further, once a baseline has been established, we will undertake a larger project in 2023. Metrics and targets recommendation disclosure (b): We have made progress towards better and more consistent data for the non-LTM and LTM portfolios, based on reported data with a coverage of less than 100% to be expected. For the remainder, we estimate from other available data. Why climate change is important for Just We are aware of the increasing need to protect our business from the effects of climate change and to reduce the impact we have on the planet to continue achieving our purpose. However, there are still many uncertainties regarding how the impacts of climate change will develop, with future government policy potentially playing a significant role. The potential climate change impacts on Just are interconnected with other sustainability issues. We recognise this is a journey and we plan to continue to work towards limiting the effects of climate change.
MAKING A POSITIVE IMPACT
LEAVING A RESPONSIBLE FOOTPRINT
CREATING A FAIR WORLD
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