Chubb 2017

Environmental Report
 Contents

Perspective on Climate Change Risks 7

Managing Risk at Chubb 9
Our Products and Services 12
Our Operations 16
Our Philanthropy 19
Our Engagement 21
Additional Resources 23

About This Report

The Chubb Corporate Environmental Program is now in its eleventh year. Chubb
remains committed to communicating important information about the company’s
environmental initiatives to our clients, shareholders, employees, business partners,
the communities where we operate and others who have an interest in our company,
our industry and the environment.

About Chubb
Chubb is the world’s largest publicly traded property and casualty insurance company.
With operations in 54 countries and territories, Chubb provides commercial and
personal property and casualty insurance, personal accident and supplemental
health insurance, reinsurance and life insurance to a diverse group of clients. As an
underwriting company, we assess, assume and manage risk with insight and discipline.
We service and pay our claims fairly and promptly. The company is also defined by its
extensive product and service offerings, broad distribution capabilities, exceptional
financial strength and local operations globally. Parent company Chubb Limited is
listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P
500 index. Chubb maintains executive offices in Zurich, New York, London and
other locations, and employs approximately 31,000 people worldwide. Additional
information can be found at: www.chubb.com

3
Chubb Environmental Report
2017

As the world’s largest publicly traded

property and casualty insurer,
Chubb has a responsibility not only
to provide solutions that help clients
manage environmental and climate
change risks, but also to control our
own ecological impact and contribute
to environmental causes. We also
believe that the well-being of society
depends on a healthy environment
and that a proper ethic strives
for balance between sustainable
development and preservation.

4
Chubb and the Climate change is an important and serious
issue for the global insurance industry
Chubb’s solutions also include
coverages for premise-based exposures,

Environment — because it is our business to provide

security against many of the property-
contractors’ and project pollution
liability, and environmental cleanup

At a Glance related risks posed by such change. projects, as well as “green building”
consulting services and a property
With operations in 54 countries and policy that enables greener rebuilding
territories, Chubb’s business and after a loss. In addition, Chubb provides
operating models are exposed to the incentives and discounts to certain
full impact of global climate change. At property customers for environmentally
Chubb, we recognize that a changing friendly behaviors.
climate affects everyone — our customers,
employees, shareholders, business
partners and the people who live and
Operations
work in the communities we serve.
The company has had a formal program to
Chubb’s Corporate Environmental
measure, record and reduce greenhouse
Program is now in its eleventh year.
gas (GHG) emissions in its own operations
We continue to be on the forefront in
since 2006. Between 2006 and 2012,
addressing environmental issues and
a period that preceded ACE Limited’s
the implications of climate change for all
January 2016 acquisition of The Chubb
areas of our business. We are proud of the
Corporation, GHG emissions at ACE were
progress we have made and are committed
reduced 27% per employee, far exceeding
to taking further steps to make meaningful
the original goal of an 8% reduction per
improvements in the environment.
employee. From 2015 to 2017, Chubb
reduced absolute global GHG emissions by
11%. The company will continue to deploy
Products & Services successful approaches for GHG emissions
reduction, including installing energy-
As a global insurance company, assessing efficient lighting and equipment and more
risk is a core competency and strength efficient use of office space.
for Chubb. The company is a leader
in developing insurance products and
risk management services that facilitate
market-based solutions to environmental Philanthropy
and climate-related issues. Today,
The environment is a priority in Chubb’s
Chubb is among the world’s largest
corporate philanthropy.
global underwriters of environmental
liabilities and pollution risks. In the U.S.,
Chubb supports communities around
Chubb is also a leader in meeting the
the world in which our employees
insurance and risk engineering needs of
live and work through our established
clean technology companies, including
philanthropic entities and via company-
renewable and alternative energy
sponsored volunteer initiatives. For
providers, manufacturers and software
example, grants from the Chubb charitable
and hardware companies.
foundations have helped preserve
sensitive lands and habitats across the
U.S. and around the world, finance green
business entrepreneurs, and support
educational programs that promote a
healthy and sustainable environment.

5
Recent
Milestones

11%
The reduction from 2015 to 2017 in

1
A-
absolute global GHG emissions.

Chubb released its first progress report since

joining the UN Global Compact and formally
committing to its environmental principles

The company’s 2017 score

150
the CDP’s climate change
program ranking

Total number of metric tons of carbon dioxide

equivalents saved from new building-efficiency
projects at company-owned facilities in 2017
53+
Number of countries around the
world where Chubb has issued
environmental
risk policies

144,000
Number of trees the company has
planted through its Environmental
Risk Business’s sponsorship of
342,000
Number of acres of threatened lands and waters in the U.S. Chubb has
American Forests’ ReLeaf Program helped save through its support of The Conservation Fund
since 2007

1/2
11
Number of years
of Chubb’s The proportion of the Global
Corporate Cleantech 100, the top private
Environmental innovation companies in
Program clean tech, insured by Chubb

6
Perspective on
Climate Change
Risk

At Chubb, our business involves providing Global insured losses from catastrophe
clients with insurance and reinsurance events were the highest-ever recorded in
protection from the impact of natural a single year. It was the second costliest
catastrophes, including weather events North Atlantic hurricane season since
that are more frequent or severe. Over 2005. Last year was also a record year for
time, we’ve seen an increasing trend wildfires. Major wildfires across the globe
in extreme weather events — floods, resulted in combined insurance losses of
drought, heat waves and hurricane $14 billion, the highest ever.
intensity — and recognize that climate
change is a contributor. Many of these natural catastrophes are
affecting human environments that
Chubb recognizes that a changing climate are now more densely populated and,
affects everyone — customers, employees, therefore, more vulnerable.
shareholders, business partners and the
communities we serve. In his 2017 letter Global sea levels are also rising at an
to shareholders, Evan Greenberg, Chubb accelerated rate and, as the National
Chairman and CEO, wrote, “The evidence Aeronautics and Space Administration
of climate change is immediately has reported, global sea levels rose about
apparent, profound and disturbing. It can 17 centimeters (6.7 inches) in the last
be found in its extremes — from drought century. However, the rate of this increase
to flooding — with rising sea levels and has doubled that of the last century2.
warmer oceans likely contributing to
large wind events that contain more In addition, since 1950 in the U.S., the
moisture or creating weather patterns number of record high temperatures has
favorable to massive wildfire conditions.” been increasing, while the number of low
temperature events has been decreasing.
According to a 2018 Swiss Re Sigma According to the World Meteorological
study, total global economic losses from Organization’s 2017 Statement on Global
natural and man-made disasters were Climate, 2017 was one of the world’s three
$337 billion, almost double the losses in warmest years on record3.
2016 and the second highest on record1.
1 Swiss Re Sigma Study No 1/2018, Natural catastrophes and man-made disasters in 2017; a year of record-breaking losses
2 Environmental Protection Agency, Climate Change Indicators in the United States: Sea Level – Updated August 2016
7 3 World Meteorological Organization, Statement on the State of Global Climate in 2017; WMO-No. 1212
4 World Health Organization, Fact Sheet on Climate Change and Health; Feb., 2018
Recent research from the National As a leading insurer, Chubb continues
Oceanic and Atmospheric Administration to implement innovative ways to
has stated that because of increasing engage with its policyholders and other
temperatures, ideal wildfire conditions constituencies in managing climate
have resulted in large fires impacting change risk. These include:
the Western part of the U.S. As stated
in Chubb’s Annual Report, in 2017 • Advising policyholders in catastrophe-
we experienced the largest wildfire prone areas of the potential risk
in California history by both the management benefits of mitigation,
amount of acreage destroyed (288,000 including the transition away from such
acres) and the amount of insured loss areas
(approximately $9 billion), with estimated • Providing innovative risk-mitigating
industry insured losses for all California insurance solutions to companies that
wildfires likely exceeding $12 billion. must operate with climate change risks
• Providing risk engineering services to
The impact of global climate change
help clients mitigate supply chain and
extends beyond natural disasters and
weather events in ways that are a direct global operations risks from exposures
threat to human health. For example, related to a changing climate
the World Health Organization’s July • Working with governmental agencies
2017 Fact Sheet on Climate Change and on mutually beneficial insurance
Health notes that between 2030 and capacity solutions in catastrophe-prone
2050, climate change is expected to cause areas
approximately 250,000 additional deaths • Consulting with policyholders on a
per year from malnutrition, malaria, targeted basis regarding their own
diarrhea and heat stress4. carbon footprint management

It is clear that a societal response is

required — from legal and regulatory
issues to corporate responsibility
— to address the liabilities and the
opportunities presented by climate
change. Climate change will also require
a more holistic or comprehensive risk
management approach.

8
Managing Risk Managing risk is core to Chubb. Standard
& Poor’s rating of Chubb’s enterprise risk
to the developing risk exposures attributed
to climate change. Since the earth’s

at Chubb management process as “Strong” in its

April 2017 ERM rating report places the
climate appears to be changing in ways
inconsistent with the historical record
company among the top 19% of North upon which catastrophe models draw
American and Bermuda insurers. data, Chubb has adopted a shorter-term
view of event frequency that is higher than
Our approach to risk management is to the long-term historical frequency.
identify all known and emerging risks that
could have an impact on overall capital Chubb invests continually to upgrade
levels and financial results. Regarding the and refine its risk management tools
potential effects of catastrophe losses, for catastrophes such as floods and
we closely monitor our catastrophe risk hurricanes. Through the use of
accumulations around the world. catastrophe models, Chubb manages
severe weather risk to indirect client
Because the potential physical effects of exposures throughout the world. Special
climate change present a significant risk to emphasis is given to areas where Chubb
the company, they have been integrated has significant exposures and the inherent
into Chubb’s overall risk management risk from extreme weather events — such
process. In addition, Chubb continually as tropical cyclone and other windstorms
assesses the potential business impact of — is deemed to be high, such as the
the changing climate and, if appropriate, coastal United States, Southeast Asia and
develops new procedures, products and/ U.K./Europe.
or services. New offerings could be in
the form of products, entry into industry To aid in prioritizing management focus
segments, risk engineering services or on extreme weather events, each peril
claims services. region is classified as either Tier 1, 2 or
3 according to the exposures and risk
combination present. Tier 1 regions are
Modeling the highest priority areas for the company
as they present the greatest risk profile
Chubb is a leading proponent and and are the most carefully managed. Tier
user of catastrophe models to quantify 2 and 3 regions are also closely managed
natural catastrophe risk for product at the regional and business unit level.
pricing, risk management, capital
In addition to modeled peril regions, we
allocation and to simulate and estimate
focus on non-modeled perils, such as
hurricane losses. Chubb uses models
flood and wildfire, which present a risk
to aggregate and closely monitor
in many of the developing areas of the
natural catastrophe exposures across
Chubb insurance portfolio. Several major
its global portfolio and to ensure that
natural catastrophes in recent years,
its capital base is sufficiently strong to
such as Hurricane Harvey in Texas, the
meet the expectations of regulators,
Kumamoto earthquake in Japan, flooding
rating agencies and policyholders and to
in Europe and wildfires in California,
provide shareholders with an appropriate
were non-modeled events or involved
risk-adjusted return.
difficult-to-model coverages (e.g.,
Modeling is a valuable tool in identifying business interruption). These types of
possible market opportunities. At losses have not typically been considered
Chubb, risk management modeling and in the risk and pricing model framework
underwriting practices have been adapted used by the insurance industry to project

9
Chubb recognizes
that a changing
climate affects
everyone —
customers,
employees,
shareholders,
business
partners and the
communities
we serve. natural catastrophe losses and this has analysis ranges from the known (based
led to an overall rise in the industry’s on definitive historical loss experience)
perception of risk. to the hypothetical (based on a probable
maximum loss (PML) calculation).
The natural catastrophes of 2017 included
both modeled and non-modeled losses.
For example, the insurance industry’s
Pricing
flood models for Houston did not
correctly anticipate the extent of flood
Chubb incorporates risk mitigation
risk: the city suffered three one-in-100
services through its risk management
year floods in an 18-month period,
and site surveys, specification of terms
including Hurricane Harvey. As Mr.
and conditions in policies and the
Greenberg has noted, “Models provide an
development of sound underwriting
organized framework for thinking; they
guidelines into the underwriting of
don’t represent truth.”
catastrophe-exposed products (e.g.,
property, energy, marine or crop
The lessons learned from such events —
coverage). Chubb’s modeling and
new assessments of building performance
underwriting approach allows for risk —
and improved understanding of how a
and hence price — differentiation across
convergence of conditions can increase
our client base.
losses in a severe catastrophe — enable us
to incorporate the latest knowledge in our
Clients that mitigate risk — through
modeled loss estimates.
retrofitting buildings to comply with
updated building codes, installation
Chubb accounts for the potential impact
of hurricane shutters and relocating
of catastrophe and climate risks on the
exposures away from coastlines and
company’s own facilities and operations.
flood plains — will have lower insurance
Direct risk to Chubb’s business operations
costs than those that do not. Chubb also
exists if such weather events occur
makes use of terms and conditions, such
where Chubb has offices. Severe weather
as sub-limits, coverage restrictions and
events have tested Chubb’s business
deductibles, to ensure appropriate risk
continuity program and operations
selection and potentially reward certain
have functioned effectively. Chubb’s risk
policyholder behavior.

10
Chubb invests
continually to
upgrade and
refine its risk
management tools
for catastrophes
such as floods and
hurricanes.

The company is also actively engaged Reinsurance

with regulators to ensure that pricing is
actuarially sound and can be adapted to We mitigate our exposure to climate
meet new and emerging climate change change risk by actively hedging
risks and the capital implications of catastrophe risk in both the reinsurance
these risks. For Chubb to continue to and capital markets. In addition, our
offer coverage under climate change investment portfolio, which backs the
conditions, pricing must always be set at loss reserves and claims-paying ability
sound actuarial rates that cover loss costs, of our insurance businesses, is highly
expenses and risk margins on exposed diversified by risk, industry, location, and
capital. Thus, pricing must be flexible type and duration of security.
over time and by geography.
Successful risk transfer from
Unfortunately, many regulatory regimes policyholders to insurance and capital
impose the functional equivalent of price markets also requires industry standards
controls, which are not built to respond around exposure data. We are committed
to developments in risk assessment and to helping the industry improve standards
signal the wrong incentives to consumers that will ultimately help increase risk
and businesses that are encouraged to transfer capacity and provide additional
increase exposures. incentive for risk mitigation behavior by
policyholders.

11
Our Products Chubb is committed to developing
insurance products and risk management
• Green property insurance
• Political risk and trade credit

& Services services that facilitate market-based

solutions to current and pending
• Renewable energy construction,
technical lines
environmental and climate-related • Power production property insurance
issues. Chubb is one of the largest and • Clean tech
most advanced global underwriters of
Chubb’s Environmental Risk business has
environmental liabilities and pollution
issued policies in more than 53 countries,
risk, with environmental risk units in
and continues to launch products that
North America, Europe, Asia and Latin
are in demand globally. One example
America. In the U.S., we are a leader
is a suite of coverages offered through
in meeting the insurance and risk
the company’s specialized clean tech
engineering needs of clean technology
industry insurance program. The Clean
companies, including renewable
Tech Sustainability Suite offers tech firms
and alternative energy providers,
involved in research and development
manufacturers and software and
(R&D) protection for property and
hardware companies.
business income.
Chubb’s products and services, which fall
In addition, the success of the company’s
primarily into the areas of environmental
green consulting services offered to
risk, renewable energy coverage, Clean
insureds within certain policies has led
Tech and “green” initiatives, touch on
to an expansion of these environmental
virtually all lines of coverage worldwide.
services to other coverages and products
The full range of environmental and
within Chubb’s portfolio. In order to
sustainability property and casualty
effectively manage growing multinational
products and services include:
demand for these products, Chubb
• Environmental professional indemnity continues to establish a flexible, complex
• Environmental risk products and unified set of standards for global
• Global weather insurance market opportunities.

12
Environmental Liability Insurance reporting via phone, web or mobile whitepapers that provide perspectives to
device and has demonstrated it can both businesses on emerging risks and insights
Chubb is fully aware that specialized reduce environmental damage and lower into how to manage these risks to avoid
environmental risks present a unique claim costs by as much as 20% to 25%. future environmental exposures. Titles
combination of scientific, political and include: Electronic Waste: Managing the
financial factors that require specific Chubb’s product line also includes Environmental and Regulatory Challenges;
technical expertise and local knowledge. catastrophe management coverage, Agricultural Businesses Face Unrecognized
As environmental regulation and which handles the cost of services to Environmental Risks and New Business
awareness has increased, coverages for maintain and restore public confidence Models, Technology Raise Professional
environmental liabilities are growing following an environmental catastrophe. Liability Risks for Contractors.
in demand, not only from traditional Outside the U.S., the company’s
“polluting” industries, such as energy core environmental products are
and chemical companies, but also from sold through Chubb Global Markets
Renewable Energy Initiative
other organizations that own land or at Lloyd’s of London. Among the
have potential liability. These include broad range of bundled/unbundled
The renewable energy sector is another
governments, real estate owners and environmental engineering and risk
major product area for Chubb, particularly
developers, manufacturers, agricultural minimization services available for Chubb
in light of the increased global attention
entities and global consumer brands. Environmental Risk insureds are:
on climate change. The desire to develop
Chubb monitors more than 3,400 clean, efficient alternative sources of
environmental regulations awaiting • Evaluation of existing waste
energy is leading to the planning and
attention from legislators and regulators management protocol/disposal site
construction of renewable energy projects
around the globe, all with the potential selection
around the world.
to alter how commercial clients conduct • Evaluation of existing mold, asbestos
their business. These include both new and lead management plans
These projects take many different
initiatives as well as increased enforcement • Evaluation of existing underground
forms: biomass/biofuel, biogas, fuel
of existing laws and regulations. storage tank management programs
cell, methane extraction facilities, solar,
• Evaluation of spill prevention, control
wind, geothermal, hydro energy and
To meet strong and growing demand, and countermeasure (SPCC) plans
manufacturers of solar panels, wind
Chubb has bolstered its environmental • Mock regulatory audits for point source
turbines and wind turbine components.
underwriting staff and offers many pollutants into surface waters, air
Chubb addresses risks that occur in the two
innovative products, including Global pollutants and solid waste pollution (for
main phases of a typical renewable energy
Premises Pollution Liability (PPL) compliance with the National Pollutant
project — construction and operation.
and Contractors’ Pollution Liability Discharge Elimination System (NPDES)
Construction risks range from delay in start-
(CPL) policies for U.S. multinational and the Resource Conservation and
up to public or employer liability, whereas
corporations doing business at home Recovery Act (RCRA))
operation risks range from business
and abroad. The CPL and PPL programs • Training (mold awareness,
interruption to premises pollution.
combine insurance with technical underground storage tank program
support to help contractors reduce their management, 24 HAZWOPER for Chubb partners with a variety of
environmental exposure. Also, Chubb’s hazardous waste operations, etc.) companies to provide risk engineering
Hazardous Material/Waste Transportation • Storage tank operator training expertise in the following capabilities:
product line offers safety and claims business continuity assessment,
Chubb has demonstrated its leadership
services for hazardous materials and equipment breakdown inspections,
in insuring environmental risks in
hazardous waste transporters. maintenance program reviews, pollution
other ways. The company has provided
information to the National Association risk assessments, and many others.
Another innovative product is Chubb’s
of Insurance Commissioners and
Environmental Incident Alert program,
individual state insurance regulators in
which facilitates more rapid dispatching
the U.S. related to climate change risks
of incident-response contractors as
and related company policies. Chubb
well as real-time monitoring of clean-up
also periodically produces and sponsors
costs. The program offers 24/7 incident

13
 • Software and hardware companies,
including energy efficiency and smart
grid technologies
• Emerging companies, including
those in R&D stage with a focus on
biorenewables
• Manufacturers and service providers,
especially component parts
manufacturers or distributors supporting
clean technologies, renewable energy
producers and clean transportation

Recent clients include an energy-efficient

lighting company that reduces electricity
usage, as well as a company engaged in
the research and development of next-
generation fibers.

Chubb has joined clean tech associations

and sponsored events to enable direct
access to the local clean tech ecosystem.
Clean Tech Such engagement enhances product
development because we can translate
Chubb’s Clean Tech business provides our understanding of client exposures
bespoke insurance solutions to into new, bespoke coverage. This
companies that are creating new approach ensures that our insurance
technology and driving innovation. solutions tailored for this fast-paced,
This global business has dedicated innovative segment remain relevant.
underwriters, risk engineers and claims
examiners who specialize in handling We have entered into the following
clean technology clients. associations and sponsorships:

Clean Tech clients face differing • Global Cleantech 100 List

exposures through the development, • Cleantech Forum San Francisco
or lifecycle, of their business. Chubb’s • Colorado Cleantech Industries
bespoke insurance solutions cover Association
companies as they move from start-up, • Northeast Clean Energy Council
including research and development, • Cleantech San Diego
to pilot projects to commercialization. • Sustain OC
The exposures faced by these clients • Sponsor of Greentown Labs, Boston
stem from complex supply chains, the • The Clean Tech Group — Sponsorship of
globalization of their product, intellectual the European Forum 2016
property rights and environmental • Clean Tech Scandinavia — Sponsorship
liability. Our risk engineers are able to of the Nordic Cleantech Open
provide clients with risk management • U.K. Renewable Energy Association —
advice in all of these areas. 2016 & 2017 Membership

Any company involved in the following

activities would fall within our Clean
Tech business:
• Renewable and alternative energy
producers

14
There are premium
credits available
to customers that
buy “preventative
measures” coverage.

Green Building Restoration Consulting Services and safety personnel at their locations
as necessary to meet their health, safety
Chubb works with public and private Chubb clients also receive a and the environment (HSE) objectives.
stakeholders worldwide to develop risk full complement of traditional Other services offered by our personal
transfer and risk management services environmental consulting in the lines unit includes wildfire defense
that allow for innovative responses to following categories: wastewater services and infrared camera scans
the additional risks associated with management, waste management, of clients’ homes to identify areas for
implementing green initiatives. Chubb’s air quality management, emergency improved energy efficiency.
Green Property Insurance policy provides preparedness and response, reporting,
coverage for commercial businesses environmental management systems
that desire to rebuild to a “greener” including ISO 14001, as well as Other Coverages
standard in the event of a loss to an sustainability and environmental
existing building. This includes: energy- impact analysis and reduction. Chubb Coverages such as property catastrophe,
efficient appliances, electronics, heating provides services such as industrial crop and business interruption insurance
and cooling systems, interior plumbing hygiene assessments; regulated and are significant businesses for Chubb, and
systems and lighting fixtures; low volatile hazardous materials management and the company continues to invest in these
organic compound (VOC) paints, primers, remediation oversight; environmental businesses and in developing solutions
solvents, finishes and adhesives; low due diligence; and Leadership in Energy to help clients manage the physical risks
emissions carpet and floor coverings; and Environmental Design (LEED) and posed by climate change. Today, Chubb
or Forest Stewardship Council (FSC) regulatory compliance consultation. is one of the leading crop insurers in the
certified wood. There are also premium Customized Environmental Protection U.S. through the company’s Rain and Hail
credits available to customers that buy Agency (EPA) and Occupational Safety subsidiary. Chubb Agribusiness insures
“preventative measures” coverage, and Health Administration (OSHA) companies that manufacture, process
which provides the policyholder up to a compliance training programs and and distribute agricultural products. In
certain amount of money if the insured services are also provided. Programs in addition, our Global Weather coverages
has certain mitigation features in place. asbestos, lead-based paint and microbial help clients insure against unpredictable
These policies encourage actions from management, and water intrusion weather conditions and climate change,
Chubb’s customers that help to reduce prevention are also offered. Accredited protecting their assets around the world
GHG emissions. compliance staff are also available to against damage or loss due to adverse
augment clients’ environmental, health, weather conditions.

15
Our Operations One of the primary objectives of Chubb’s
Corporate Environmental Program is
The company’s emissions are third-party
verified to ISO 14064-3 standards. Chubb
to measure, record and reduce GHG also reports its GHG emissions data and
emissions. As an insurance company, related activities to CDP, an international,
Chubb has a modest environmental not-for-profit organization providing the

Chubb is committed footprint. However, we aim to reduce our

mark on the environment even further.
only global system for companies and cities
to measure, disclose, manage and share
to developing This includes efforts to reduce the direct
and indirect GHG emissions generated
vital environmental information. For 2017,
the company earned a score of A- on the
insurance from heating, cooling and lighting our CDP’s climate change program ranking.

products and offices and from company owned or

leased vehicles, as well as the reduction, In 2016, both ACE and legacy Chubb were
risk management reuse or recycling of resources. ranked “High Quality” companies for
the comprehensiveness of their climate
services that ACE Limited launched its corporate risk disclosures by Ceres, the nonprofit

facilitate market-
environmental program in 2006, about sustainability organization. ACE and
a decade before it acquired The Chubb Chubb were two of only 22 insurers out of
based solutions to Corporation and adopted the Chubb
name globally. By 2012, the company
148 analyzed to earn this distinction. The
report, Insurer Climate Risk Disclosure
current and pending had reduced its GHG emissions 27% per Survey Report & Scorecard: 2016 Findings

environmental and
employee, far exceeding its original goal. & Recommendations, ranked insurance
From 2015 to 2017, Chubb reduced its companies based on five core areas:
climate-related absolute global GHG emissions by 11%. governance structures to address climate
risk; climate risk management programs;
issues. The company first developed its
Corporate Greenhouse Gas Inventory
use of catastrophe and other computer
modeling tools to manage climate risk;
Management and Reduction Plan in engagement with stakeholders; and
2007, when ACE joined the voluntary greenhouse gas emissions measurement
Climate Leaders initiative sponsored and reduction.
by the U.S. Environmental Protection
Agency (EPA). The plan included global To achieve our GHG reduction goals,
emissions reporting, the establishment we have aggressively worked to make
of a reduction goal and a strategy for reductions within our operations. Our
achieving the goal. plan focuses on reducing our energy
consumption at the facility level —
While the EPA’s Climate Leaders primarily in our owned buildings and
program was discontinued in late 2011, larger, long-term leased spaces. Chubb
our Corporate GHG Inventory Program created a targeted energy policy for
is still actively using its methodology, its operations in Europe, a region that
which is based on the World Resources includes 19 countries. The policy aims to
Institute and the World Business reduce GHG emissions by establishing
Council for Sustainable Development building energy benchmarks and
(WRI/WBCSD) GHG Protocol for data pursuing short-term objectives that
collection and analysis. We gained reduce energy consumption within the
valuable knowledge and skill related region. As part of this policy, Chubb has
to climate change issues through the conducted an energy audit at its
Climate Leaders initiative, and are proud
to have been one of only a few insurance
company partners in the program.

16
London, U.K. office, for example, and has
identified GHG reduction opportunities 2017 GHG Emissions Profile
that have been implemented successfully
to date. Projects in London include: Profile by Scope
increased chiller temperature set points, In tons of carbon dioxide equivalents (tCO2e)
AHU heat recovery and changing plant
running times. A number of other
projects are still in planning stage, but Scope 1 (Indirect) 52,921
the energy efficiency projects that have
been implemented have reduced energy Scope 2 (Direct) 27,211
consumption at the building.

In addition, Chubb deployed natural

renewable energy as its main source
of energy for its real estate portfolio in
the U.K. In 2017, the natural renewable
energy mix consisted of 50% wind, 40%
solar and 10% hydro (water). Through Profile by Region — Scope 1 and 2
the deployment of natural renewable In tons of carbon dioxide equivalents (tCO2e)
energy, Chubb’s GHG emissions have
North America* 49,976
been reduced through the avoidance of
fossil-fuel based energy consumption.
Asia Pacific 12,636
This reduction in emissions is equivalent
to 3,140 tons of CO2e. Latin America 11,816

Another approach to reducing our GHG Europe 3,853

emissions is to reduce our overall real
estate square footage by condensing Eurasia & Africa 1,348
office locations and making work space
more efficient. Applying new company Japan 503
standards for the number and size
* Includes corporate jet usage
of office and cubicle spaces not only
reduces total real estate per-person
square footage, but allows more light into
the space, which decreases electricity
consumption.

In Mexico, for example, Chubb Additional Environmental Metrics

implemented GHG reduction initiatives
at three of our offices in Monterrey, 2017 2016 2015
Mexico, which have contributed to an
Energy (MWH) 245,138 250,178 245,846
8% reduction in energy consumption in
Direct 107,261 104,570 100,317
the region. Also, during the integration
of ABA Seguros and Chubb Fianzas Indirect 137,877 145,608 145,529
Monterrey, 550 employees from seven Renewable 10,126 4,984 0
offices were relocated to the company’s Waste (Tonnage) 4,600 5,100 5,000
new building in Mexico City. In addition
Water (Million m3) 0.344473 0.340687 0.340687
to establishing a recycling program and
US/Bermuda Business Travel 139,466,178 141,111,852 110,274,492
eliminating plastic water bottles and
(KM)
Styrofoam, approximately four tons of
paper were recycled during the move.

17
 2017 GHG Inventory Data
Absolute Emissions (C02 - eq. (metric tons))
From 2015 to 2017
80,132 88,482 89,980 Chubb reduced
its absolute GHG
emissions by 11%

2017 2016 2015

In 2017, Chubb completed an energy One of our largest buildings in North Employee Engagement
audit for one of the company’s largest America, in Philadelphia, earned LEED
facilities located in Whitehouse Station, Silver certification in 2009, becoming Our employees globally play a role in
N.J. The results of this energy audit are the city’s first LEED-certified existing supporting the company’s environmental
currently being evaluated, and energy building. Over the next five years, the commitment.
saving initiatives will be implemented company increased the amount of energy
where feasible in order to further reduce efficient lighting (raising the Energy In recent years, employees helped the
GHG emissions. Star score from 73 to an 84), supported company achieve substantial progress on
alternative commuting methods (public the following five initiatives:
Emissions from mobile combustion — transportation, walking, biking, etc.)
which account for 27% of the company’s and implemented other green building • Establishing recycling programs in all
GHG inventory — include our global initiatives at the location. In November eligible offices
fleet of vehicles and aircraft. Chubb 2014, the Philadelphia building earned • Discontinuing the use of disposable
manages its flight-related emissions by LEED Gold recertification. plastic water bottles
operating new, ultramodern jet aircraft • Removing all disposable Styrofoam
equipped with the latest engines, wings In 2011, our Bermuda executive office products in offices
and avionic design technologies, making building was awarded LEED Gold • Purchasing only sustainable copy paper
them leaders in their respective aircraft Certification under the LEED for Existing in all offices
categories for efficient flying. These Buildings: Operations and Maintenance • Reducing paper consumption by 5%
advanced capabilities allow Chubb’s rating system, making it the first building Volunteers in offices undertake
aircraft to operate at very high altitudes on the island to earn LEED certification. environmental projects on a local scale.
and consume less fuel. These advanced In 2014, Chubb was one of the first For example, in Philadelphia, the local
aircraft also fly optimal routes, which companies to engage with the USGBC to Chubb Green committee implemented
have shorter distances between world adopt the LEED Dynamic Plaque system a composting program in the building’s
destinations, saving fuel and, ultimately, for the building. Dynamic Plaque is a cafeteria. Due in part to this initiative,
the release of GHGs. building performance and monitoring Chubb diverts 60% of all waste in the
tool. It is continually scoring the building building from a landfill. In Bermuda,
Chubb has implemented green building based on five different categories: local teams created a Chubb vegetable
practices and, in a number of locations, energy, water, waste, transportation garden, and the produce is served in the
has pursued the U.S. Green Building and human experience. Because the building’s cafeteria.
Council’s LEED certification. Green building is continuously being scored on
building practices help improve indoor a one-to-100 scale, the LEED Dynamic In late 2017, employees at the company’s
air quality, address resource management Plaque encourages stakeholders to Whitehouse Station, N.J. office
and reduce building water use. make meaningful improvements to the participated in a series of sustainability
building based on observations gained trainings aimed at educating employees
from their score. on sustainability, green building and the
company’s own environmental goals.

18
Our Philanthropy The environment is a priority in Chubb’s
corporate philanthropy. The Chubb
The Bermuda National Trust plays
a leading role in environmental
charitable foundations and the company’s stewardship in Bermuda. For over 20
employees support a wide range of years, Chubb has supported the Trust
environmental philanthropies and with nearly $450,000 grants to help
volunteer activities in local communities preserve precious natural reserves and
around the world. Through these woodlands by removing invasive species,
initiatives, Chubb promotes a healthy and planting native flora, grass sowing,
sustainable planet. landscaping and picking up litter.

Chubb’s charitable foundation grants The Chubb Charitable Foundation also

have helped preserve sensitive lands supports the sustainability of cultural
and habitats, finance green business institutions. Through a Foundation
entrepreneurs, and support educational grant, the Philadelphia Museum of the
programs that promote a healthy and American Revolution, which opened
sustainable environment in the U.S. and in 2017, was recently awarded a LEED
around the world. Gold certification for its commitment to
energy conservation and environmental
Since 2005, the company has supported awareness. Among the museums’
The Conservation Fund, which has environmentally friendly features are a
protected nearly 8 million acres across green roof and cutting-edge stormwater
the U.S. In recent years, the company’s management and heat-recovery systems.
charitable foundation has provided more
than $1 million to The Conservation Fund Chubb’s Environmental Risk business
initiatives that have protected more unit continued to contribute to the
than 345,000 acres of threatened lands ReLeaf Program of American Forests, the
and waters as well as the Conservation oldest national nonprofit conservation
Fund’s ShadeFund™ program, which organization in the U.S. In 2017, Chubb
provides small loans to promising green pledged its support to sponsor the
entrepreneurs by pooling contributions planting of 32,000 trees to support
from individuals, companies and the American Forests Global ReLeaf®
foundations. As entrepreneurs repay their program. Chubb’s sponsorship is the
loans, capital is redeployed to help other largest by the company since it began
entrepreneurs grow their businesses, thus supporting the cause in 2008. Chubb’s
creating jobs, preserving working forests pledge represents one tree for each new
and supporting rural communities across environmental insurance policy written
the country. globally in 2017.

The Chubb Charitable Foundation’s Chubb’s contribution will support planting

support of the Nature Conservancy projects in six U.S. states – California,
provided the continuation and expansion Kentucky, Mississippi, Texas, West Virginia
of coral reef restoration in the Mexican and Wyoming – as well as Indonesia and
portion of the Mesoamerican Reef. This Panama. With a goal of planting more than
effort resulted in transplanting 10,000 2 million trees in 2017 alone, American
new coral colonies and establishing new Forests has planted more than 50 million
restoration sites and coral nurseries. The trees since 1990 — in all 50 states and in
Nature Conservancy works to protect the nearly 50 countries worldwide.
lands and waters on which all life depends
in 72 countries around the world.

19
Chubb’s charitable
foundation grants
have helped preserve
sensitive lands and
habitats, finance
green business
entrepreneurs, and
support educational
programs that
promote a healthy
and sustainable
environment in the
U.S. and around
the world.

Volunteer Efforts These are just a few of Chubb’s many

environmentally focused funding and
Chubb organizes employee volunteer volunteer projects. Other ongoing and
projects regionally with an environmental pending projects around the world
focus. For example, in addition to demonstrate Chubb’s community and
providing financial assistance to the philanthropic dedication to critical
Fairmount Park Conservancy and its environmental issue
Growing the Neighborhood Program,
Chubb employees in the Philadelphia
area have volunteered on park cleanup
days throughout the year. Chubb
employees in Thailand have also
volunteered in mangrove reforestation in
the Rayong Province.

20


Our Engagement
In 2017, Chubb joined the United Nations Global Compact, the largest corporate
sustainability project in the world. Chubb formally committed to making the
Compact’s environmental principles part of the culture and day-to-day operations of
the company.

Membership in the Geneva Association (genevaassociation.org), an international

insurance think tank representing 90 global insurance organizations, whose Climate
Risk and Insurance project has been outspoken on climate change issues. Chubb’s
Chairman and CEO is among the 68 chief executives of major international insurers
who have publicly confirmed their commitment to the Geneva Association’s Climate
Risk Statement — a set of guiding principles on the substantial role insurance can play
in global efforts to tackle climate-related risks.

Completion of CDP’s annual survey to further support our commitment to reducing

our carbon emissions. In 2017, the company earned an A- on CDP’s climate change
program ranking.

Participation in ClimateWise (climatewise.org.uk), a U.K.-based organization of

insurance companies committed to taking action on climate change and to reporting
publicly on their performance.

Membership in the Business Roundtable (BRT), which supports collective actions that
will lead to the reduction of greenhouse gas emissions on a global basis. Each year,
Chubb Chairman and CEO Evan Greenberg outlines the company’s environmental
commitment and achievements in BRT’s Sustainability Report.

Membership on the Reinsurance Association of America’s (RAA) Extreme Events

Committee, which focuses on catastrophe modeling improvements to reflect climate
change. Chubb supported the RAA’s call for reform of the National Flood Insurance
Program (NFIP) in the U.S. Congress that would ensure that program rates are
actuarially sound and encourage risk mitigation.

21


Chubb is a member of SmarterSafer.org, a coalition that includes environmental

advocacy groups such as Ceres, Environmental Defense Fund, National Wildlife
Federation and the Sierra Club, founded to promote and support disaster safety and
preparedness measures that are consistent with sound environmental stewardship of
our fragile coastal ecosystems.

Membership to the Insurance Information Institute (I.I.I), an association that

improves public understanding of insurance. The organization, supported by industry
members, is a primary source of information, analysis and referral concerning
insurance, including the potential threats climate change poses to the global economy,
ecology, and human health and well-being.

22
 Additional Information & Resources

Chubb Group
Chubb Website: Chubb and the
Environment
Chubb’s CDP Responses and Scores
(free registration required)

Supporting Partnerships
Business Roundtable
ClimateWise
Geneva Association
Insurance Information Institute
Reinsurance Association of America
UN Global Compact

Selected Philanthropy Partners

The Conservation Fund
ShadeFund™
Bren School of Environmental Science &
Management
American Forests’ Red Leaf Program
Lega Italiana Protezione Uccelli (LIPU)

Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services.
For a list of these subsidiaries, please visit our website at www.chubb.com. Insurance provided by U.S. based Chubb
underwriting companies. All products may not be available in all states. Coverage is subject to the language of the
1 policies as actually issued. Ed. 6/18