Thermal coal, oil sands and Arctic exploration: our stance

As Canopius further strengthens its responsible underwriting strategy, our approach on thermal coal, oil sands and Arctic exploration activities can be summarized as following:

Starting in 2022, Canopius will not enter into any contracts that aren’t renewals pertaining to the above activities, unless incidental (no more than 20% of turnover, or no more than 20% of total asset or project value, depending on the business line).

We are actively working with all our clients on their ongoing and demonstrable transition plans to reduce their greenhouse gas (GHG) emissions. Our minimum underwriting requirements now include seeking clarification from our clients on their exposures to those activities. We recognise that secondary exposures are somewhat more complicated to assess, and we will not have absolute clarity in all instances. This process will inform our global risk selection going forward.

Canopius is also seeking to build portfolios that demonstrably support low-emission energy production. We have been a market leader in renewable energy risk for some time and will continue to seek ways to offer new products in this space and others. We are dedicated to supporting the energy transition and re-weight our portfolio to support a lower-emission future, and continuing to be an active risk partner for our clients as they navigate the transition.

At portfolio level, our transition plans are to:

1. define the most relevant metric(s) and establish a baseline,
2. actively select and accompany with a focus on relationships, and
3. reduce over time our overall portfolio’s GHG-emitting risks.

Wherever possible, we’ll also work with our broker and distribution partners to define the appropriate policy language and remove uncertainty around definitions and coverage.

Beyond climate change, Canopius is committed to further developing and deepening its approach to broader ESG matters.