Climate risk governance

Board oversight

Sampo's Board of Directors has ultimate oversight of group-level sustainability work and risk management, including environmental and climate-related matters. The Board has assigned its Audit Committee to monitor the Group’s reporting and activities related to these topics. The Audit Committee reports to the Board of Directors quarterly. The Board of Directors approves, for example, the Code of Conduct, Risk Management Principles, and the Group Own Risk and Solvency Assessment (Group ORSA) as well as the Group’s sustainability and risk management reporting.

Management role

Sustainability

The Group Chief Financial Officer (CFO), who is a member of the Sampo Group Executive Committee (GEC), directs Sampo’s Sustainability unit. The CFO also ensures that adequate reporting on environmental and climate matters is provided to the Group Chief Executive Officer (CEO). The Sustainability unit is responsible for the development and coordination of sustainability at group level. The Group CFO and Sampo’s Sustainability unit report to the Board of Directors and the Audit Committee on sustainability matters at least twice a year, and more frequently when necessary.

Risk management

The duty of Sampo Group’s Risk Management function is to control the effective operation of the risk management system within the Group companies and to monitor, review, and report on group level risks and risk management. High-quality, comprehensive risk management facilitates that Sampo’s executive management and Board of Directors are constantly aware of the Group companies’ business-related risks and their ability to carry the financial and other risks related to business activities. Sampo Group’s business activities and therefore also their corresponding risk management activities are mainly performed in the Group’s insurance and investment operations. Risk reporting is provided to Sampo’s Board at least quarterly.

Insurance subsidiaries

Climate-related risks and opportunities are identified, assessed, and managed primarily in the insurance subsidiaries, where the actual business operations are being carried out. The Group companies operate in different geographical areas and in different customer and product segments, it is consequently the responsibility of the respective company boards and managements to manage climate-related risks and opportunities accordingly.

External reporting

Sampo Group reports regularly on its environment and climate work as part of the Group’s sustainability and risk management reporting (e.g. website). The annually published Board of Directors’ Report and Financial Statements provide legislative information on climate risk governance.