Línea Directa Aseguradora adopts the TCFD climate risk recommendations promoted by the G20
- Línea Directa Aseguradora is committed to following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), a working group created by the G20 Financial Stability Board to encourage companies to inform investors about the risks and opportunities that climate change involves for the company, how they manage them and the progress they are making in this area.
- The Group will progressively incorporate this international organisation's recommendations on climate risk in terms of corporate governance, risk management, strategy and indicators.
- The company already has an ESG risk assessment that allows it to identify and manage environmental, social and good governance risks included in its current Sustainability Plan.
- Among the progress made, Línea Directa has reduced its emissions by 58% over the past two years, is promoting the decarbonisation of the car fleet with products such as the Respira ('breathe') policy and has linked part of the Management Committee's variable remuneration to sustainability targets.
Madrid, 17 May 2022. The impact that climate change and the transition to a low-carbon economy has on companies is leading investors to demand more, better information on the risks and opportunities this context generates for them. In its commitment to transparency and sustainability, Línea Directa Aseguradora has made a commitment to follow the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), a working group created by the Financial Stability Board to promote corporate reporting to the markets on the management of climate challenges and the progress made in this area.
The Financial Stability Board (FSB), an international organisation created by the G20 after the 2008 financial crisis to maintain a sound financial system, created the TCFD in 2015 in the face of the growing risk posed by climate change. In order to facilitate the markets' investment decisions, this group established a series of recommendations in 2017 on corporate reporting on the risks and opportunities of climate change, such as impact on the weather, regulatory changes and consumer habits. More than 3,300 organisations around the world have already made a commitment to follow them.
As an entity adhering to the TCFD, Línea Directa Aseguradora will progressively implement the 11 recommendations, which are divided into four areas. In terms of corporate governance, and as the company already does, it will report on the Board of Directors' supervision of climate challenges. With regard to risk management, the Group must report on its internal processes for identifying and managing risks. Regarding strategy, the commitment includes describing its impact on the business and financial planning, and it also contemplates publishing the indicators and metrics that the company uses to measure its performance on these matters.
Progress made by the Línea Directa Group
Línea Directa already identifies and manages environmental, social and good governance risks based on its ESG risk strategy as set out in the current Sustainability Plan. In addition, the Group has reported on these aspects in the Non-Financial Information Statement published in February of this year, after its first year as a listed company.
Sustainability is a commitment that, from a governance point of view, the Group manages at the highest management level, through a Sustainability Committee formed by some of the members of the Management team and which ultimately falls under the responsibility of the Board of Directors. In addition, part of the Management Committee's variable remuneration is linked to meeting sustainability targets.
Línea Directa also addresses the subject of climate as an opportunity for growth. It has developed and made available to its customers products that promote the decarbonisation of vehicles in Spain, such as the Respira ('breathe') policy for electric cars, and formed partnerships with other companies to promote energy efficiency in homes.
In terms of metrics, the Group has been calculating its carbon footprint in its three scopes (direct, indirect and induced emissions) for more than ten years. Since 2019, the company has reduced its emissions by 58% in scopes 1 and 2, in line with its goal of achieving carbon neutrality by 2030 and thanks to measures such as using ECO-label replacement vehicles, installing solar panels in Línea Directa buildings and providing electric vehicles for employee travel between the Group's office centres.
In the words of Mar Garre, People, Communication and Sustainability Director, "at Línea Directa Aseguradora, we are continuing to reinforce our commitment to sustainability by adopting the best international practices. With the commitment we have made to implementing the recommendations of the TCFD, we are also advancing in our commitment to transparency, conveying complete, standardised information to our stakeholders and society in general on how Línea Directa Group addresses the risks and opportunities derived from climate change and its progress on environmental matters".