In our engagement, the board chairman and company executives explained that they consider climate change as part of their risk oversight process and said that a separate board committee focuses on ESG matters. But the chairman also acknowledged that the company had room for improvement and committed to enhancing its disclosures in the near future. We appreciated the leaders’ candid assessment.
Ultimately, the funds voted in favor of one of the proposals that asked for a climate report, because the company’s disclosures lagged those of peers and touched only on direct emissions targets. Based on our analysis of the myriad ways that climate change can affect insurers, we believe that climate change puts certain insured assets at a greater risk of loss. iA Financial derives a portion of its sales revenues from property and casualty insurance, so we believe that investors will benefit from greater disclosure about this risk.