Prioritize Community Resilience Amid Increasing Risk: Co-operators
Canadian financial services and insurance co-operative sheds light on efforts to catalyze a sustainable, climate-resilient Canada
Guelph, ON (May 13, 2024) – In a year marked by financial volatility and a worsening trend of climate-related events, Co-operators highlights in its 2023 Integrated Annual Report a need to develop and invest in collaborative, innovative solutions to the challenges faced by Canadians.
While challenged by significant underwriting losses in its property and casualty line of business, driven in part by increased claims costs due to the high inflationary environment, buoyed in part by strong investment returns the Canadian financial services co-operative and insurer reported a net income before tax across its group of companies of $310.6 million, maintaining its strong capital position. Driven by its purpose of “Financial security for Canadians and our communities”, Co-operators has leveraged this strength to invest significantly in climate solutions, community resilience, and the net-zero, sustainable economy.
In addition to $2.77 billion paid in claims and benefits to its clients in 2023, Co-operators directed a sizable proportion of its capital to build the sustainability and resilience of Canadians. By the end of 2023, 48.4% of its invested assets – or $5.90 billion – was invested in climate transition and impact investments that provide strong financial returns and positive social and/or environmental impacts that can be adequately measured, tracked and reported. Co-operators has committed that by 2030, 60% of its portfolio will be in impact, climate transition or resilience investments, and that by no later than 2050, its investment portfolio will be net zero aligned.
Co-operators highlighted efforts to seed a new resilience investing market in Canada, mobilizing private capital to build much-needed climate adapted infrastructure, and to strengthen household, community, and ecosystem-level resilience. To ensure this work is built with insights from and in collaboration with Canadian communities, Co-operators partnered with ICLEI Canada and ten Canadian municipalities from coast to coast on the Financing Resilient Infrastructure Project, where participating municipalities identified a suite of possible resilient infrastructure projects that private investors could help realize.
“Our industry and indeed all of society is reckoning with the impacts of climate change; impacts that will worsen unless we move to better protect our communities. As insurers, our business models need to expand to include a greater focus on resilience,” says Rob Wesseling, President and CEO of Co-operators. “We need creative, whole-of-society partnerships and imaginative ideas that confront the climate crisis head on, because every day and every year that we don’t move forward with substantial action increases the risks and the costs to society.”
Co-operators asserts in its report that its “investment and asset management practices can help shift the economy toward one that supports sustainable, resilient communities.” By directing its financial strength toward mitigating and adapting to the climate crisis, and advocating for others to do the same, the Canadian co-operative aims to mobilize a targeted, coordinated effort to de-risk our society while supporting the environmental, social, and financial fabric of Canada.
The Integrated Annual Report serves as Co-operators’ Public Accountability Statement and is made available to all members, clients and the public.
For the full report, visit integratedreport.cooperators.ca
Detailed information on climate-related milestones, governance, strategy, risk-management and targets and metrics, can be found in Co-operators Climate Report at cooperators.ca/reports.
Highlights from Co-operators 2023 Integrated Annual Report
Access to financial services in times of financial volatility:
$2.75 billion in retail wealth assets under management and administration, offering a wide range of investment solutions that don’t exclude lower-income Canadians.
Investments for a sustainable, climate-resilient future:
$5.90 billion invested in impact and climate transition investments.
Insurance designed for a changing climate:
700,000 Canadian households are covered by Comprehensive Water, Canada’s first and only product to provide access to flood insurance for all flood risk levels, including storm surge in coastal areas.
Social impact:
$12.2 million contributed to organizations building environmental resilience, enriching social wellness, creating a more inclusive economy and championing a co-operative society.
About Co-operators
Co-operators General, a leading Canadian multi-product insurance company, is part of The Co-operators Group Limited (Co-operators). Co-operators is a leading Canadian financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. Co-operators has more than $64 billion in assets under administration. Co-operators has been providing trusted guidance to Canadians since 1945. The organization is well known for its community involvement and its commitment to sustainability. Achieving carbon neutral equivalency in 2020, the organization is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is also ranked as a Corporate Knights’ Best 50 Corporate Citizen in Canada. For more information, visit www.cooperators.ca.
Source: The Co-operators Group Limited