RGA transforms risk into opportunity, both with our products and services and through corporate citizenship firmly rooted in our values of accountability and innovation.
As a global capabilities and solutions leader, RGA integrates sustainability and governance considerations into business decisions. We are dedicated to operating ethically and transparently, consistently delivering sustainable long-term value – for RGA, for our clients, and for the communities we serve.
In 2024, RGA published its third Sustainability Report, providing information in alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) frameworks. The report covers RGA’s strategy and programs related to ethics, transparency, community support, environmental sustainability, and employee engagement.
As part of our forward-looking approach to sustainability, RGA integrated results of an enterprise-wide climate risk scenario conducted in 2023 to assess climate risk and build resilience throughout the company. Using a methodology provided by the European Insurance and Occupational Pensions Authority (EIOPA), the climate stress test analyzed the impact of different climate change scenarios on the asset and liability sides of RGA’s balance sheet.
RGA’s Corporate Social Responsibility team manages RGA Cares, a global employee community engagement program that facilitates volunteer participation, employee charitable contributions, and RGA matching grants. The number of employees using the RGA Matching Gift Program in 2024 increased by 12% compared to 2023, and those using the company-wide volunteer time-off policy increased by 20%. Overall, more than 62% of employees participated in sustainability, charitable outreach, and/or DEI activities in 2024, logging over 16,000 volunteer hours in support of global community initiatives.
RGA integrates sustainability factors into investment decision-making to bolster social outcomes and improve risk-adjusted returns. As fixed-income investors, our Investments team embeds various considerations throughout our research process to strengthen risk assessment, business model analysis, and issuer engagement activities in order to improve long-term returns. In 2023, RGA increased investments in sustainability bonds and investments aligned with United Nations Sustainable Development Goals (UN SDGs) by $745 million, bringing the total book value of our SDG-aligned investments to $5.6 billion.
RGA is also striving to achieve material reduction in the carbon intensity of our investment portfolio over the current 2022-2026 strategic plan — a target reduction of 20% in Scope 1 and Scope 2 emissions from the public corporate bond portfolio by 2026, compared to the 2021 baseline portfolio. We have implemented a robust climate risk management framework as part of our investment process for managing our medium-term overall exposure to issuers that screen poorly in terms of emissions trajectory. RGA successfully delivered a cumulative reduction of 20% in the carbon intensity of our portfolio over the two-year period ending December 31, 2023.
