More than ever before, our clients, employees and global partners want to work for and partner with innovative and diverse companies that are driving long-term value while delivering positive environmental and social impact.
At FM Global, we have an incredible opportunity to leverage our unique assets, innovative solutions and industry-leading expertise to deepen our purpose and play a meaningful role on Environmental, Social and Governance (ESG) issues to drive positive change.
This year’s annual report theme and FM Global’s purpose – protecting today for a better tomorrow – clearly expresses our approach to helping our clients prevent loss, protect their purpose and increase the potential for positive downstream impact on their stakeholders and communities.
Our Vision and Focus Areas
As part of our purpose, we recently developed FM Global’s ESG vision and focus areas. As a research-, science- and data-driven organization, FM Global embraces solving problems and creating innovative solutions for our clients. In partnership with our clients and colleagues, we recognize our potential to increase resilience in the communities where we work and live, and around the world.
Resilience has been part of our DNA since our founding nearly 200 years ago. It’s only natural that it plays a key role in our ESG vision: Resilience Is for Everyone.
To bring our ESG vision to life, we established four focus areas that reflect our values and will support our efforts to make a lasting difference. Our vision will help us drive progress in all of our focus areas – our communities, the environment, the transition to renewable energy and our people. Together, they form the foundation of our recently developed ESG strategy. These focus areas are:
Strengthen Communities
We are committed to driving positive socioeconomic outcomes for vulnerable communities through strategic partnerships and collaborations that leverage our unique expertise, data and resources.
Counter Climate Change
By applying and expanding our science-based knowledge and solutions, we will help others adapt to and protect against climate risk while reducing their own impact on the environment.
Accelerate the Renewables Ecosystem
We are supporting the advancement of the renewables industry and the transition to alternative energy through research and innovation.
Empower Employees to Thrive
We are focused on deepening our commitment to Diversity, Equity and Inclusion and the well-being of our people to fully realize our purpose and generate positive impact for the broader society.
Through our ESG vision and focus areas, we believe we can help drive long-term value creation and stability for FM Global, our clients and our shared communities – and expand the circle of resilience around the world.
For example, climate change is a complex and evolving issue that requires ongoing monitoring and adaptation. Through our advanced research-, engineering- and data-driven capabilities, we develop products and services to help our clients understand their own climate risks and how to reduce and mitigate their property exposure.
In 2022 we advanced our climate resilience capabilities with the launch of a suite of climate resilience products, including:
Climate Change Impact Report:
Through this report, FM Global helps evaluate the long-term reliability and effectiveness of current risk mitigation solutions. The report uses analysis to assess acute and chronic risks at visited locations, specified by peril, according to three different climate scenarios. Combining engineering data from site visits with the latest insights into climate change, each proprietary report helps manage and report the potential future impacts of physical climate-related risks and exposures.
Climate Reporting Aid:
This guide helps clients select acute and chronic climate-related physical risks they may wish to disclose to investors and the public, according to widely adopted frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD).
Climate Risk Report:
Leveraging the latest advancements in analytics, including artificial intelligence and machine learning, FM Global’s Climate Risk Report provides a unique view of current, event-driven exposures or “acute” physical risks: wind, flood, hail, wildfire, freeze, collapse and lightning.
FM Global Resilience Index:
The FM Global Resilience Index provides a country-based view of risk, ranking 130 territories and countries based on the resilience of their business environment, providing organizations with a new level of understanding of how climate risk could impact their business and plans for future growth.
Moreover, in 2022 and 2023 we distributed a first-of-its-kind Resilience Credit to eligible policyholders to help with additional resources to guard against extreme weather hazards such as wind, flood and wildfire. In 2022 the announced Resilience Credit totaled US$294 million; in 2023, the credit increased to US$357 million.
We also engage beyond our clients to apply our knowledge in support of the broader global community.
FM Global collaborates with organizations across the globe, applying our research, engineering and analytical capabilities to help create a broad understanding of the impact of climate change. Partners include Western University; the American Society of Civil Engineers; the Wind Engineering, Energy and Environment Research Institute; Florida International University; and the United Nations Disaster Risk Reduction Science and Technology Partnerships, among many others.
As a resilience leader focused on building a better tomorrow, it’s important to demonstrate we are thoughtfully managing our own environmental footprint to meet the growing expectations of our clients, employees and communities. In the near term, we are committed to offsetting our carbon emissions to achieve carbon neutrality while we work toward the long-term reduction of our environmental footprint across our global operations and employee travel.
Governance
Strong governance is central to the long-term success of FM Global and an integral component of ESG. It also protects FM Global against risk and supports our mutual structure, purpose and values, and corporate objectives.
Our board of directors and executive leadership provide strategic direction on our ESG priorities. Reflecting the broad nature of ESG, the strategy is highly integrated across multiple business areas. Strategy development and execution are coordinated by the ESG team and led by cross-functional groups and key business partners.
A byproduct of our strong governance and risk management culture is limited public disclosures about our business. Like many organizations, we are facing growing disclosure expectations from legislators, regulators, clients and other stakeholders, and our ESG vision and strategy support our desire to provide regular updates on our ESG journey.
Looking Ahead
Our ESG vision aligns with our company purpose, values and business objectives. Moreover, we have the commitment – and responsibility – to bring this vision to life and drive positive change that benefits our colleagues, clients and communities.
We are excited to go on this journey with all of you – our clients, partners and employees – as we create a future where Resilience Is for Everyone.