WHEREAS: Climate change is creating systemic risks to the economy, and immediate, sharp emissions reductions are required. Companies lacking ambitious goals to cut greenhouse gas (GHG) emissions may jeopardize shareholder value for diversified investors, as climate change poses undiversifiable and unhedgeable risks.1
Markel is exposed to climate risk both as a long term investor in high-quality companies and as an insurance underwriter. In its most recent 10-K, Markel acknowledges that “If climate change results in an increase in the frequency and/or severity of weather-related catastrophes, we may experience additional or elevated catastrophe-related losses or disruptions, which may be material.”2 Regarding its casualty risk exposure, Markel states emphatically on its website that “Now is the time for the industry to wake up and start creating tools to prepare for potential systemic and clash events associated with climate change so that we will be prepared to face these risks head on.”3
It is consistent, then, that Markel has, in its words, “continued to support the insurance industry’s push for carbon neutrality as part of the Paris Climate Agreement.”
Yet, despite Markel’s acknowledgement of its climate risk, exhortations to address growing climate change-related casualty risk, and support for carbon neutrality, it fails to offer wholistic strategies that address its risk or align with its public statements. Markel additionally does not publish a comprehensive sustainability report, nor does it disclose emissions associated with its investments or underwriting.

Peer companies such as Travelers4 and AIG5 have started to disclose emissions associated with their investments, as have Swiss Re6, Munich Re7, Allianz8 and Aviva.9 Further, Swiss Re10 has begun to disclose its insurance associated emissions, and Aviva plans to do so as well.11

Markel could address investor concerns and take meaningful action by publishing a comprehensive sustainability report, similar those of its Fortune 500 peers. Moreover, the Company should begin the process of quantifying and disclosing the full range of its operational and value chain GHG emissions with the aim of setting an emissions reduction target aligned with the goals of the Paris Agreement of limiting temperature rise to 1.5 degrees Celsius.