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Environmental issues and climate change are factors that are expected to have a mid and long-term effect on Sampo Group’s businesses. Investments are particularly exposed to climate-related risk in the form of losses incurred from extreme weather events and possible revaluation of assets as operating models in carbon intense sectors change. Sampo Group companies analyze the carbon footprint of their investments and their alignment with international climate goals annually.
Natural catastrophes and extreme weather conditions are risk factors affecting the financial position and results of non-life insurers. The increasing likelihood of extreme weather conditions is included in internal risk models. Climate-related risks are managed effectively with reinsurance programs and price assessments.
The Sampo Group companies also help their customers to manage climate-related risks. Extreme weather conditions can, for example, damage properties, lead to crop failure and business interruption. Loss prevention is an essential part of insurance services as it helps customers to reduce economic losses and mitigates the impacts of climate change.
Responsible corporate culture includes factors relating to the work environment, diversity, equality, employee well-being, employee engagement, professional development, and talent attraction and retention. Skilled and motivated employees are an essential success factor in Sampo Group’s aim to provide customers with the best service in all situations. Losing talent or being perceived as an unattractive employer would pose large risks for the businesses. Therefore, Sampo Group companies strive to ensure a sound work environment, not only because it is stipulated by law, but also because it lays the foundation for sustainable business performance. Diversity and equality are key focus areas for the Sampo Group companies, which are committed to providing a diverse, non-discriminatory, open and agreeable working environment where everyone is treated fairly and equally. Risks related to these themes are managed, for example, by having strong internal policies, conducting organizational development programs, and offering employees training, interesting career opportunities and attractive remuneration packages.
Responsible business management and practices are fundamental to Sampo Group companies’ operations. Good governance in Sampo Group means effective policies, management practices, and training, which provide assurance that the Group companies and their personnel, suppliers and other business partners comply with laws, regulations and generally accepted principles on human rights, labor rights, environment, anti-money laundering, counter-terrorism financing and anti-corruption and bribery. Further, it comprises comprehensive information security and cybersecurity governance systems, and data protection activities. Additionally, responsible business practices require being attentive to the risks relating to inappropriate customer advice and product sales, lack of clarity on conditions, prices and fees, and errors in claims handling and complaint processes. Sales and marketing practices’ focus is on meeting the demands and needs of the customer and providing the customer with the information necessary for them to make well-informed decisions on their insurance coverage.
Responsible investment management and operations are important in managing investment risks and in mitigating potential adverse impacts on the Group’s reputation. Therefore, Sampo Group companies take environmental, social and governance (“ESG”) issues into account when assessing the security, quality, liquidity, and profitability of investments. Investment opportunities are carefully analyzed before any investments are made and ESG issues are considered along with other factors that might affect the risk-return ratio of individual investments. Depending on the asset class, Sampo Group companies use different ESG strategies to ensure the effective consideration and management of investment risks arising from ESG issues. The strategies include, for example, ESG integration, sector-based screening, norms-based screening, and active ownership.