Línea Directa publishes its first report on risks and opportunities associated with climate change under the TCFD standard

• Linea Directa Aseguradora has voluntarily published its first climate report following the reporting recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). The document outlines the company's strategy for addressing the risks and opportunities associated with global warming, serving as a valuable tool for shareholders, regulators, customers, and other stakeholders of the entity.
• As part of its 2023-2025 Sustainability Plan, Linea Directa aims to reduce its carbon footprint to advance its commitment to becoming carbon neutral by 2030 and achieving net-zero emissions by 2050.
• The company has a governance model that places sustainability management at the highest executive and entity management level, starting from the Board of Directors.
• Among the advancements made in its decarbonization roadmap, the entity reduced its Scope 1 and 2 emissions by 10% in 2023 and 50% in 2022. Additionally, 100% of the company's electricity consumption in its facilities comes from renewable sources, with 14% being self-generated.
• Furthermore, Linea Directa is already carbon neutral in Scopes 1 and 2, having offset and neutralized emissions in the last two years.

Madrid, March 21, 2024 - Linea Directa Aseguradora has today published its first report on risks and opportunities associated with climate change in accordance with the reporting recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), one of the leading international initiatives in environmental reporting. This voluntary document contains the entity's strategy to address climate change and contribute to the decarbonization of the economy by 2050.

As part of its commitment to sustainability, transparency, and rigor, Linea Directa Aseguradora has been adopting non-financial reporting standards from various international organizations. In this regard, the company adopted the TCFD guidelines in 2022, a working group created by the G20 Financial Stability Board to promote market information on managing climate challenges and progress made in this area.

Linea Directa's first climate report describes the governance model, strategy, risk management system, metrics and objectives of the company regarding the risks and opportunities arising from global warming, as well as the progress made by the entity in this regard.

This document is a valuable tool for shareholders, regulators, customers, and other stakeholders of the company to understand and comprehend the entity's strategy in the face of the climate challenge.

Sustainability Governance

Linea Directa's commitment to combating climate change is integrated into the company's sustainability strategy, which is articulated through its triennial Sustainability Plans, where the environmental axis is a fundamental pillar.

Last year, the Board of Directors approved the 2023-2025 Sustainability Plan, which integrates sustainability across corporate strategy and organizational risk management. Additionally, the company has established a governance system that allows it to manage all ESG aspects (environmental, social, and governance) coherently and efficiently.

As reflected in the climate report, Linea Directa's Board of Directors oversees the advancement of these plans, with three committees involved in monitoring and controlling measures and risks related to sustainability in general and climate change in particular: the Management Committee, the Permanent Risk Committee, and the Sustainability Committee, comprised of Directors from various corporate areas. Thus, the entity places sustainability management at the highest executive level of the organization.

Additionally, the company has established a Sustainability Task Force, composed of experts from different areas of the company, which proposes actions to be included in the Sustainability Plan to the Sustainability Committee and ensures their execution and implementation.

Climate Strategy and Key Achievements

Regarding the climate strategy, Linea Directa's report analyzes the risks and opportunities associated with global warming that have the potential to impact the company's business. The entity, following the TCFD standard, classifies them into physical risks, which are direct consequences of climate change, such as increased extreme weather events or changes in climate patterns, and transition risks, which arise from the transition process towards a low-carbon economy, such as regulatory, market, and technological changes.

Linea Directa's environmental actions are focused on three main areas. Firstly, sustainable business generation through the development of products aimed at promoting sustainable practices in mobility and household energy efficiency. In this regard, the company launched the 'Respira Policy' in 2016, with specific coverage for electric and plug-in hybrid vehicles, which has allowed it to reach a market share of 10.1% in this segment in 2023, 1.4 percentage points higher than the previous year and almost double that of 2021.

The company also promotes efficient resource management and circular economy through consumption reduction, self-generation of renewable energy, and systematization of waste treatment. Last year, the Linea Directa Group reduced its energy consumption by 4%, and electricity consumption in the company's facilities from renewable sources reached 100%. In this regard, 14% of the electricity consumed by the entity is already self-generated.

Furthermore, Linea Directa has defined a roadmap for decarbonization, with the aim of being a carbon-neutral company by 2023 and achieving net-zero emissions by 2050. Among the advancements made in this regard, the entity reduced its Scope 1 and 2 emissions by 10% in 2023 and 50% in 2022. Additionally, Linea Directa is already carbon neutral in Scopes 1 and 2, having offset and neutralized emissions in the last two years.

In the words of Patricia Ayuela, CEO of Linea Directa Aseguradora, "climate change is one of the major global challenges we face due to its social and economic impact. Therefore, decarbonizing the economy is a fundamental priority for society as a whole, and especially for the insurance sector. At Linea Directa Aseguradora, we are fully committed to integrating sustainability into our business with the aim of becoming a company with net-zero emissions by 2050. Through this first TCFD climate report, we demonstrate how we have adapted our strategy and management to address this challenge and the progress made towards this collective goal."

The TCFD report from Linea Directa can be consulted and downloaded here: https://www.lineadirectaaseguradora.com/documents/652707/1217474/linea-directa-informe-climatico-tcfd-2023.pdf