Confident FuturesCorporate Responsibility Report 2019

Welcome to our 2019 corporate responsibility report

2 Introduction3 Introduction from our Executive team4 Who we are6 OurConfidentFuturesstrategy8 Ourglobalcontext

10 Shaping a smarter tomorrow11 Identifying,understandingandmanagingrisks13 Spotlighton:Roadsafety16 Spotlighton:Climatechange

19 Building stronger relationships20 Excellence in customer care24 Aflourishingworkforce28 Active in communities

31 Managing the everyday well 32 Responsibleinvestmentandunderwriting34 Sustainable operations36 Responsible supply chain38 Customer privacy and data security40 Businessintegrity

43 Governance

This corporate responsibility report outlines our progress towards our Confident Futures strategy. The report covers performance across RSA’s global operations in the financial year 1 January to 31 December 2019.

Additional online information Please visit our Corporate Responsibility Reporting Criteria 2019 for information onourreportingapproach,scopeandboundaries.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 2 RSA – Confident Futures Corporate Responsibility Report 2019

A message from our Group Chief Executive

2019markedanimportantmilestone in RSA’s continued commitment to responsible business with the launch of our new strategy,ConfidentFutures.

RSAhasalonghistorysupportingpeopleintheirtimesofneed,helpingthemtorecoverquicklyandgetbackontheirfeet.

ConfidentFuturestakesthisastepfurther,byenablingpeopleandbusinessestomanagerisksproactively,embeddingresponsiblepracticesintoouroperations,andensuringenvironmentalandsocialissuesareconsideredinourbusinessdecisions.

Howwedobusinessisasimportantaswhatwedo,andourcustomers,colleaguesandpartnersrightlyaskthatweareconsciousofthis.AssignatoriestotheUNGlobalCompactsince2007,ourlong-termcommitmenttotheTenPrinciplescontinues.

I’mproudofthestepswetookin2019toaddresssociety’schallengesandhowwe’rerespondingtothechangingdemandsandexpectationsofourcustomers.

Stephen Hester, Group Chief Executive

Thefirstfewmonthsof2020haveremindedusthatnothingiscertain.Inaworldthat’sconstantlychangingandfacingnewchallenges,businessplaysanimportantrole.Wehavearesponsibilitytohelpfostercollaboration,developsolutionstosocietalproblems,andtoreflectonandcontinuallyimprovehowwework.

EmbracingtheseopportunitiesisattheheartofRSA’sConfidentFuturesstrategy.AsChairofourGroupCRCommittee,I’mdelightedtosharetheprogresswemadeduring2019,ourfirstyearofimplementation.

Aswesetambitiousgoals,wearecommittedtoworkinginpartnershipwiththosearoundus.Wecanofferinsightandexpertiseondiversechallenges–whetherbuildingresiliencetotheeffectsofclimatechange,supportinglow-carbontransitionorhelpingpeopletostaysafeintheirday-to-daylives.Wemustensurethatourproductsandservicessupportgoodcustomeroutcomes,andthatourpeoplearesupportedtoreachtheirfullpotential.

Thisyear,we’vebuiltthefoundationsforourstrategy.Wedevelopedourcharitablepartnershipstoalignwithour‘Smartertomorrow’ambition,supportingmorethan200,000peopletoimprovetheirknowledgeofrisksandchangetheirbehaviours.WelaunchedanewClimateChangeandLowCarbonPolicytoguideourunderwritingandinvestmentdecisionsaswell

A message from our Group Corporate Responsibility Committee Chair

assettinganambitiousnewcarbonemissionsreductiontargetforouroperations.

Buildingstrongerrelationshipswithourcustomers,colleaguesandcommunitiesisatthecentreofourstrategy.Thisyear,we’veredesignedsalesjourneys,improvedhowwelistentoandrespondtocustomerfeedback,andstrengthenedstepstoensureourproductsarefairtoall.There’splentymoreweneedtodo,andourplansprioritiseit.

Lookingoutside,a45percentincreaseinemployeevolunteeringhoursshowsthepassionofRSA’speoplearoundthisagenda.I’malsoproudoftheactionswe’retakingtopromotediversityandinclusion,exceedingourWomeninFinanceChartertargetforimprovinggenderbalanceinourmanagementgroup.Atthesametime,we’veinvestedinthelearninganddevelopmentopportunitiesweoffertoourcolleaguesandenhancedsupportformentalhealthandwellbeing.

Ourstrategyisatanearlystage:RSA’sjourneyisjustbeginninganditwillevolvewiththeworldaroundus.I’mproudofthecommitmentourpeople show every day to support our local communitiesandimprovewhatwedo,and I’mlookingforwardtoworkingwithall ourstakeholderstoinspireaction, encourageinnovationanddemonstrate theimpactofthestepswe’retaking.

Insurance has a deep-rooted social purpose. Our Confident Futures strategy helps us embed responsibility into how we do business today.”“

Scott Egan, CEO, UK & International Chair, Group CR Committee

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 3 RSA – Confident Futures Corporate Responsibility Report 2019

Who we are We’ve been helping people and businesses to protect what matters most to them for more than 300 years.RSAprovidespersonal,commercialandspecialtyinsurancethroughbrokersandaffinitypartnersanddirectlytocustomers,workingacrossCanada,Scandinavia,theUK,Ireland,EuropeandtheMiddleEast.Inallourregions,wearecommittedtodevelopingtrusted consumer and commercial brands that delivergreatserviceandrelevantproductstoourcustomers.

We are driven to help individuals and businesses tomanagetheirriskswell,andtosupportthemtorecoverifthingsdon’tgoasplanned.Forus,beingabest-in-classinsurermeansapplyingourexpertisetobigandeverydaychallenges,frommanagingextremeweatherpatternstotacklingfraudandhelpingindividualstostaysafeontheroadandathome.

Wearealwaysseekingtobuildourtechnicalskillsandgraspopportunitiesforinnovationandcollaboration,tobetterrespondtotheemergingrisksaffectingourcustomersandtoreachawideraudience.Atthesametime,wearecommittedtomanagingourbusinessoperationssustainably,havingapositiveimpactonthecommunitiesweworkinandensuringthatRSAisagreatplacetobuildafulfillingcareer.

1ExcludingUK&Iexitportfolios,pleasesee our 2019 Annual Report and Accounts for furtherinformation.

2Full-timeequivalentemployees.

£6.4bnNet written premiums

£383mProfit after tax

93.6%Combined operating ratio1

12,378Number of employees2

74%Business distributed through brokers and partners

At a glance

Learn more about RSA in our 2019 Annual Report and Accounts.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 4 RSA – Confident Futures Corporate Responsibility Report 2019

Canada

£1.7bn Net written premium

3,056 employees

Our operationsScandinavia Sweden, Norway, Denmark

£1.8bn Net written premium

2,616 employees

UK & International UK, Ireland, Oman, Saudi Arabia, UAE, Bahrain, Western Europe

£2.9bn Net written premium

6,706 employees3

Household 24%

Motor 24%

Other Personal Lines 9%

Property 18%

Liability 9%

Commercial Motor 10%

Marine and other 6%

2019 Net written premium by product

2019 Net written premium by line of business

£6.4bn Net written premium

57%Personal43%Commercial£3.6bn£2.8bnAt a glance

3TotalincludesemployeesfromourGroupCorporateCentre.

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We want to play an active role in managing the uncertainties and complexities of today’s world and to enhance the positive impact of our business activities.

OurConfident Futuresstrategy

Our strategy for a confident future Asabest-in-classinsurer,webelieveRSA’scontribution shouldn’t start with a policy andendwithaclaim.Ourfive-yearcorporateresponsibilitystrategy,ConfidentFutures,definesthekeyfocusareasforourbusiness tomakethemostpositiveimpactonsocietyandtheenvironment.

Itsetsoutthefollowing:

• How we integrate responsible business practices into our everyday operations

• Our ambition to create a future in which people can be smarter and more confident in managing the risks they face

Welaunchedourstrategyin2019,andwe’re proud to share the achievements madeinitsfirstyear.

Through Confident Futures, we are committed to developing supportive, long‑lasting relationships with our customers, colleagues and communities.” Stephen Hester, Group Chief Executive

“

Watch our Confident Futures animation.

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Shaping a smarter tomorrowWe aim to use our resources to enhance customers’andsociety’sunderstandingoftheriskstheyfacesotheycanmanagethemmoreeffectively.

• By promoting road safety across our operations, we’vereachedmorethan187,000peoplewithevidence-basedinsightsthathelptochangeeverydaybehaviours

• We’ve redefined our partnership with WWF-Canada tofocusonbuildingflood-resilientcommunitiesinresponsetoachangingclimateandlocalneeds

• We’re expanding our partnerships and campaign work to identify products and services that support riskmanagement

Building stronger relationshipsWe’resupportingourcustomers,colleaguesandcommunitiesbyseekingtobetter understand and respond to their needs withclearcommitmentstoaction.

• We’ve established forums to ensure that the views of customers are represented in all our decisions

• We’re building the capabilities of our people, with73percentofleadersparticipatinginleadershipdevelopmentprogrammesin2019

• We’ve invested £1.85m in supporting local communities,witha45percentincreaseinvolunteeringhours

Managing the everyday wellWe’reimprovinghowweintegrateresponsiblebusiness practices into our everyday operations andsharingourprogress.

• Our new Climate Change and Low Carbon Policy position clearly sets out our commitment to responsible investmentandunderwriting

• We’ve reduced carbon emissions by 31 per cent since2016andsetanambitiouslong-termemissionsreductiontargetinlinewitha1.5oC world

• We’re building social and environmental criteria into our processesforselectingandmanagingsuppliers, andsupportingourpeopletothinkmoreaboutourimpactthroughthirdparties

Our Confident Futures strategy

34.6%of our Group-wide management team are women

£1.85minvested in local communities

1.4 billion miles driven by customers using our MORE TH>N telematics product

32,000children reached with our water safety programmes

15reduction in our carbon emissions in 2019

100%of the electricity we use will be renewable by 2025

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Weroutinelyassessthecorporateresponsibilityissuesthataremostrelevanttoourbusinessandourstakeholders. Thisenablesustoprioritiseourcommitmentsandresourcesonareasthataremostrelevanttoourbusinessandtosociety. Thesearelinkedtoourstrategybelow.

Understanding what’s important

In a world where our people, customers and communities are facing new challenges, our Confident Futures strategy guides our response.

Ourglobalcontext

Inmorethan300yearsinbusiness,we’velearnedthatchangeisaconstant.Wearecommittedtomanagingouroperationsinawaythatissensitivetotheevolvingcontextweoperatein.Asaninsurerandlargeemployer,wearewellplacedtohelpourcustomers,peopleandstakeholderstounderstandandnavigateawiderangeofcomplexissues–fromclimatechangeandcyber-crimetochangingskillsneeds,newwaysofworkingandadvancesintechnology.

ConfidentFutures(seepages 6 and 7) helpstoguideandgovernourresponsetothese questions and sets out our ambition to create a future in which people can be smarterandmoreconfidentinmanaging theriskstheyface.

Confident Futures

Managing the everyday well • Bribery and corruption • Humanrightsandmodernslavery• Business ethics• Insurance fraud• Safeguardingcustomers’data• Investingresponsibly• Corporate tax • Climatechangeandlow-carbontransition• Reducingtheenvironmentalimpactofouroperations

Building stronger relationships • Treatingcustomersfairly• Deliveringexcellentcustomerservice• Attractingandretainingtalent• Improvingdiversity,inclusionandwellbeing• Supportinglocalcommunities

Shaping a smarter tomorrow• Helpingcustomerstoavoidrisks

• Improvingresilienceto extreme weather

Responsible investment

& underwriting

Sustainable

operations

Responsible

supply chain

Customer privacy

& data security

Business

integrity

Partnerships and

innovation to get

ahead of risksExcellence in

customer care

A flourishing

workforce

Active in

communities

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Supporting the global agenda We’recommittedtocommunicatingourperformancetransparentlyandplayingourpartinthewiderglobalagenda.Tosupportthis,weparticipateinseveralindustryinitiatives.

UN Global Compact AsasignatorytotheUNGlobal Compact since 2007,wearecommitted tointegratingtheTenPrinciplesonhumanrights,labour,environmentand anti-corruptionintothe waywedobusiness.

ClimateWise ClimateWiseisagloballeadershipgroupfortheinsuranceindustry,supportingbetter communication and responsestotherisksandopportunities associated with climatechange.RSAisproudto be a member and plays an activeroleinbuildingmoreresilientcommunities.

UN PSI The Principles for Sustainable Insurance serve as a globalframeworkfortheinsurance industry to address environmental,socialandgovernancerisksandopportunities.Asasignatory,RSA is committed to integratingtheprinciplesintoourbusinessoperations.

Our contribution to the Sustainable Development GoalsTheSustainableDevelopmentGoals(SDGs)areasetof17goalsdevelopedbytheUnitedNations.Theyformaglobalagendathataimstoendpoverty,protecttheplanetandensureprosperityforallby2030.Achievingthesegoalsrequiresthecollaborationofindividuals,governmentsandcompanies.Wearecommittedtoplayingourpartinsolving thesechallenges.

AsamemberoftheUNGlobalCompact, we’recommittedtosupportingthesustainabledevelopmentagenda,andwehaveidentifiedsevenSDGswherewehavethegreatestopportunitytocontribute.Thisyear,we’vehighlightedwherewecontributetoeachoftheseSDGsthroughourstrategy,ConfidentFutures.

supported by RSA

Good health

and wellbeing

Gender equality

Decent work

and economic

growth

Responsible

consumption and

production

3 4 5 6 7 8 9 10

11 12

1

3

14

1

5

16 1

7 1 2

Sustai

nable

cities

and

commun

ities

Affordable and

clean energy

Climate action

Reporting our impact We’vealsoreceivedrecognitionforoursustainabilityperformanceinanumberofexternalcorporatebenchmarks andratingindices.

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Asexpertsinrisk,ourproducts,servicesandpartnerships help people and businesses tolearnabouttheriskstheyfaceandhow

tomanagethemmoreeffectively.

Shaping a smarter tomorrow

Highlights

220,000peoplereachedthrough

Smarter Tomorrow programmes

32,000childrenparticipating

in water safety programmes

Our priority SDGs

In this section Identifying,understandingandmanagingrisks>

Workingtogetherforsaferroads>Buildingresiliencetoachangingclimate>

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Identifying,understandingandmanagingrisks

Innovating products and services to reduce riskBymakinguseofourdata,technologyandrelationships,wecandevelopsmartsolutions that support customers to better understandandmanagerisks.During2019,we mapped the products and services thataligntoourambitiontoincreaseourcustomers’awarenessofriskandtochangetheirmindsetsandbehaviour.

Theseincludethefollowing:

• Telematics products,whichhelpyoungdriversstaysafebehindthewheel

• Our risk engineering database,RSAred,which helps commercial businesses to identifyriskmanagementimprovements

• Connected insurance products such aswaterleakdetectors,whichenablecustomerstomonitorpotentialrisksin their homes

Mappingtheseproducts,alongsidethecreationofourSmarterTomorrowWorkingGroup,enablesustosharebestpracticeacross our business and identify new opportunitiesforimpact.

We can’t remove life’s uncertainties, but as experts in risk, we know there are many ways for people and businesses to protect the things they care about. We believe we can play a powerful and practical roleinhelpingourcustomerstoavoidrisks,usingourinsightandproductdevelopmentexpertisetokeepthemsafeintheirhomes, ontheroadsandatwork.

Asaleadinginsurer,it’sourjobtounderstandcurrentandemergingrisks.Throughourproducts,servicesandpartnerships,wecanhelppeopleandbusinessestolearnabouttheriskstheyface,managethemmoreeffectively andprotectthethingstheycareabout. Ourapproachinvolvesthefollowing:

• Developing products and services that support our customers tomanagerisks

• Raising awareness of risks and encouragingbehaviourchange throughpartnerships,campaigns andeducationprogrammes

Our approach

Preventing accidents at home and on the road

IntheUK,wehavejoinedforceswiththe Royal Society for the Prevention of Accidents(RoSPA).Together,weaimtoreduce the number of people who are seriouslyinjuredorkilledinaccidentsathomeorontheroad.Inpartnershipwe commissioned research into the mostat-riskdemographicgroups–childrenunderfive,youngpeopleaged17–25andtheover-65s.Wearenowusingourfindingstoincreasepeople’sunderstandingofhazards,bothathomeandontheroad,andhowtheycanminimisethem.

78 ,000 people seriously injured or killed in accidents at home or on the road last year

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Raising awareness through partnerships and campaignsAllRSAregionshaveatleastonepartnershipthatisalignedtoourSmarterTomorrowambitions.Bypartneringwithotherorganisationsthatshareourobjectives,poolingresourcesandexpertise,andsharingnetworks,wecanreachnewaudiencesandincreasetheimpactofouractivities.Wefocusonissuesthataffectthecommunitiesweworkin,suchasroadandwatersafety.

Watch our video to find out more about our partnership with RoSPA on risk education.

Promoting water safety

For60years,ourTrygg-Hansabusinessin Sweden has championed water safety throughcampaignsaimedatadultsandchildren,aswellasmaintaininglifebuoys atbeaches,waterwaysandboatclubsacrossthecountry.

Oursummercampaign‘Thesoundofdrowning’drewattentiontothefactthatitmay not be as obvious that someone in the waterisdrowningaspeoplemaythink.Ourcampaignsimulatedadrowningvictimandhighlightedthedifficultyapasser-bymayhavenoticingthesigns.Thischallengedtheperceptionthatdrowningvictimswouldflailtheirarms(43percent)orcryforhelp (38percent);mostvictimsareunable tocalloutorgivedistresssignals.

ThroughourpartnershipwiththeSwedishLifeSavingSociety,schoolchildrenaretaughthowtoswimminimumdistancesandhowtothrowlifebuoystosomeonehavingdifficultyinthewater.

OurongoingBaby Buoycampaign,whicheducatesparentsofyoungchildrenabouthowtokeepsafeinthewater,includespracticalexercisestopractiseathome.

8 ,000 lifebuoys provided across Sweden

32,000 swimming lessons provided for schoolchildren in 2019

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With the number of cars on the roads increasing, road safety remains a significant social challenge. As an insurer, we have a unique perspective and understanding of risk on the roads. By sharing this knowledge and supporting safety measures, we can help motorists and other road users to stay safe.

Workingtogetherfor safer roads

The challenge•Since2000,thenumberofcarsontheroad

in the countries where we operate has risen by35percenttorecordlevelsofmorethan74million.

•Everyyear,roadtrafficincidentsareresponsibleformorethan1milliondeaths,andaretheleadingcauseofdeathfor 5–29year-oldsaroundtheworld.

•Withnewtechnologiessupportingautonomousvehicles,roadswillneedtochange–thefirstfullyautonomouscars maybeontheroadby2025.

A focus on road safety Theaverageadultspendsabout10percentoftheirlivesontheroad.Andwhileyoungdriversare disproportionately represented in road casualtystatistics,it’salsoanissueforoldermotorists,aswellaspedestriansandcyclists.

Anyseriousinjuryorfatalityasaresultofaroadtrafficaccidentisonetoomany.Makingourroadssaferisakeyfocusareaforus,withallourregionalbusinessescampaigningforimprovedroadsafety.

There’salwaysmorethatcanbedone;achievingsaferroadsneedsthecollaborationofgovernments,localauthorities,businessandcharities.Throughourpartnerships,commitmentsandcampaigns,wewant toplayourpart.

Contributing to SDG 3: Good health and well-being

OurworktoimproveroadsafetycontributestowardsUNSDGtarget3.6:tohalvethenumberofglobaldeathsandinjuriesfromroadtrafficaccidentsby2020.

Spotlight on: Road safety

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Spotlight on: Road safety

A lifelong approach: it’s up to drivers of all ages Driversofanyagecanimprovetheirabilityoraddressbadhabits.InresponsetoanincreaseinroadtrafficaccidentsinDenmarkinrecentyears,Codanranarefresher‘theory test’ campaignonline.Thistesteddriversonthelawsoftheroadandtheirpracticalexperience.With more than half of the participants believingtheycouldeasilypassthetest,thecampaignremindeddriversofthebasicsanddrew attention to scenarios that cause road trafficaccidents.Duringtheyear,177,000Danishdriverscompletedthe10-minuteonlinetheorytestand3millionwatchedthevideo.

IntheUK,we’vealsoincreasedawarenessofthepartthatin-cardistractions–suchasphonecalls,adjustingtheradioorchildrenshouting–canplayincausingaccidents. In research we commissioned for Road Safety Week,nearlyall(84percent)driversadmittedtotakingtheireyesofftheroadasaresultofadistractioninthelastyear,with28percentsayingitledtoanaccidentornearmiss. ThefindingsbuildonMORETH>N’sGive YourMobiletheBootcampaignin2017, which advised motorists to put down their mobileswhendriving.

Olderdriversarealsoatrisk.Since2010,therehas been a 33 per cent increase in the number ofolderdriverskilledorseriouslyinjuredinroadtrafficaccidents.Inresponsetothis,we’reexploringopportunitiestoimproveroadsafetyamongover-65s.

TruceTO – building harmony on Canada’s streets

RSACanada’sTruceTOcampaignaimsto makeTorontooneofthefirstcitiesinNorthAmericatoofficiallycallatrucebetweenpedestrians,cyclistsanddrivers.Launchedin2018,thepioneeringroadsafetycampaignseekstoaddressthegrowthinroadaccidentfatalitiesandthelackofeducationaroundsafepracticesbybringingtogetherdifferentroaduserstohave apositiveconversation.

Ourownresearchshowedthefollowing:

57% of cyclists and 44 per cent of pedestrians want their cities to invest in driver education

50% of pedestrians don’t always know when cyclists have the right of way

33% of cyclists have seen an unfamiliar road sign recently

Tochangemindsetsandempower everyonetotakeresponsibilityforkeepingourstreetssafe,wecreatedtheTruceTO hub:atoolkitofusefulresourcesandtoptipsforallroadusers.

6,000 people engaged with our DriveWise materials

Buildingonasuccessfulfirstyear,in2019,weteamedupwithDriveWise to provideonlinelearningmodulesandreachconsumersthroughinteractivemessagingonthestreets.Wealsolaunchedaneducational video,roadsafetyquizandpodcastseries,StreetPeace,encouragingeveryonetodotheirbit.

Find out more about the campaign on the TruceTO website.

By encouraging Canadians to look out for one another, be more mindful of their surroundings and educate themselves on the rules of the road, we hope our pledge will help reduce fatalities and increase the level of harmony on Canadian roads.”Donna Ince, Senior Vice President, Personal Lines, RSA Canada

“

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Spotlight on: Road safety

Children: be seen, be safeUnderstandinghowtobehavesafelyonorneartheroadisacriticallifeskilldevelopedfrom anearlyage.That’swhyweworkwithschoolstoprovideroadsafetyresourcesforchildren.

InDenmark,CodanpartnerswiththeTrafficSafetyatEyeLevelcampaigntoteachchildrentorecognisecommonblindspots forroadusers,reaching4,275childrenacross43schoolsin2019.Fromthedrivingseat,youngpeoplegettoseefirst-handhowlorrydrivers can’t always spot cyclists when they arebehindoralongsidethevehicle.Morethan 760childrenmadethe‘trafficpromise’online,andonechildwasnamedTrafficHerooftheYearformakingasignificantdifferenceinraisingawarenessofroadsafety.

In‑car distractions not only put drivers’ lives at risk, but those of passengers and pedestrians too. We hope that highlighting some of the most common distractions will help drivers to remain vigilant and reduce the likelihood of an accident occurring.”Gareth Davies, Head of Motor Insurance, MORE TH>N

“

Wearingareflectorincreasesthechanceofacyclistbeingseenontheroadby85percent.That’s why our Scandinavian business also continuestoworkwiththeChildren’sAccidentPreventionFundtosupportNationalReflectorDayinDenmark,NorwayandGreenland.Thisyear,colleaguesdistributed 40,000 reflectors andpromotedthebenefitsofwearingreflectorswhencycling.

Young drivers: using technology to influence behaviourYoungdriversandpassengersare over-representedincrashandcasualtystatistics.Training,educationandtechnologycanallhelptomakeyoungdriverssaferdrivers.

RSA introduced the SM>RT WHEELS telematicspoliciesfornewlyqualifieddriversin2014.Theseproductsuse‘blackbox’technologytoinfluencebehaviouralchange,raisingawarenessofkeyfactorssuchasspeed,braking,acceleratinganddrivingatnight.Customersareincentivisedtodrivesafelywithfeedbackontheirdrivingand discounts at renewal to reward the safestdrivers.Warningsorcancellationsareusedtomanagethedrivingbehaviourof a small number of customers who drive dangerously.Behaviouralpsychologyisalsousedtomaximisetheeffectivenessofourcommunicationswithcustomers.

UsinginsightssharedbyourUKbusiness, in2019,welaunchedour123GO telematics offerforyoungdriversinIreland.Incentivisinggooddriverbehaviourthrougharewardsscheme has had a positive impact on reducingaccidents.

In the UK:

Young men aged

17–2 are the highest-risk group among car drivers

In 2018

83% of road transport accident deaths in this age group were male

1 million active telematics policies (estimated by BIBA)

12% reduction in the number of young drivers killed or seriously injured in road traffic accidents since 2010

4

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123GO

Spotlight on: Climate change

As we strive to reduce our carbon emissions, we must also build resilience to the impacts of a changing climate. We’re helping our customers to adapt, by sharing knowledge on how they can protect their homes and businesses from extreme weather events such as floods, storms, wildfires and drought.

Buildingresilience toachangingclimate

The challenge•Withcarbonemissionsattheirhighestlevelssincerecordsbegan,ourplanethasalreadywarmed1.1oCsincepre-industrialtimes.

•Unlesswetakeactiontoreduceemissions, the world will experience more frequent and moresevereweatherevents.

•In2018,theeconomiccostofweather-relatedlosseswas$215bn.Insuredlosseswere$89bn,thefourth-costliestyearonrecord.

Responding to a changing world Theimpactofachangingclimateisundeniable,andthesciencebehindglobalwarmingshowsus that we need to act now if we are to limit temperaturerisesto1.5˚Corbelow.

Asaninsurer,weareacutelyattunedtotheimpactofclimatechangeandotherenvironmentalissues.Extremeweatherevents,climateactionfailure,naturaldisastersandbiodiversitylossallfeatureamongthetop 10issuesintheWorldEconomicForum’smostrecent Global Risks Report.

Contributing to SDG 13: Climate action

OurworktobuildresiliencetoenvironmentalchangecontributestowardsUNSDGtargets 13.1and13.3:tostrengthenresilienceandadaptivecapacitytoclimate-relatedhazards, andtoimproveeducation,awareness-raisingandcapacityonclimatechangeadaptation.

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Thepastfiveyearshavebeenthewarmestonrecord.Astemperaturescontinuetorise,the imperative to reduce emissions rapidly increases.Nonetheless,adaptationmeasuresarealsonecessary,asclimatechangeimpactscommunitiesaroundtheworld.

We chaired the CRO Forum’sEmergingRiskInitiativein2018,bringingtogetherkeystakeholdersfromtheinsuranceindustryand academia to consider the latest climate science.Theforumprovidedanindustryperspectiveonthephysicalandtransitionrisksassociatedwithdifferentclimatescenarios.Theresultingreport,publishedin2019,aimstoimproveunderstandingoftheimplicationsofclimatechangeontheinsurancesectorand equip industry professionals and their stakeholderstorespond.

Spotlight on: Climate change

Collaborating for climate-resilient communities Our Canadian business has redirected itslong-standingpartnershipwith WWF-Canadatoaddressfloodresilience inlocalcommunities,startingwiththeSaintJohnRiverinNewBrunswick.

Communities across Canada have experienced more frequent and intense rain and wind eventsduetoclimatechange,leadingtofloodinganddamagetohomes,businessesandpublicinfrastructure.Throughoursupport,WWF-Canadaisworkingwithcommunityleaders to assess vulnerabilities and build resiliencethroughnature-basedsolutionsandgreeninfrastructure,includingrebuildingwetlands,restoringriverbanks,replantingtreesandmanagingoverlandflooding.

The need for education In2019,weconductedajointstudywith WWFtoexploreCanadianattitudestoflooding.Increasedratesoffloodingaretakingatoll,with almost a third of respondents worried they willexperiencefloodinginthenext12months.

Despitegrowingconcerns,floodknowledgeamongthepublicremainslow.Ourstudyuncovered that nearly half of those surveyed don’tknowhowtoprotecttheirhomefromfloodinganddon’tfullyunderstanditsimpact.Our partnership aims to improve climate and floodeducationinCanadaandchampionnature-basedresiliencemeasures.Wealsoencouragegovernment,industryandlocalcommunities to collaborate on practical solutionsthatworkforallinreducingtheimpactofflooding.

Ourlong-termgoalistosharetheselearningsandreplicatetheapproachinotherat-riskcommunitiesacrossCanada.Thisyear,we’llbedevelopingcommunityresiliencetoolkitsandrecommendationsbasedonourworkintheSaintJohnRiverwatershed,aswellasexploringeducationalopportunitiesforourcustomersandbrokers.

Aggregate global weather-related insured losses by peril 2000–2018

$3,455bn

Tropical cyclone $1,253bn

Flooding $914bn

Severe weather $514bn

Drought $372bn

Winter weather $164bn

Wildfire $149bn

European windstorm $74bn

Other $15bn

74% of Canadians agreed that flooding has increased in Canada

77%attributed increased flooding to climate change

31% are concerned they could experience flooding in the next year

47% don’t know how to protect themselves against flooding

Source:Aon(2019)‘Weather,Climate&CatastropheInsight-2018AnnualReport’

17 Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance RSA – Confident Futures Corporate Responsibility Report 2019

Helping customers to manage flood risks Tomakeourcustomersmoreawareoftheclimate-relatedriskstheyfaceandhelpbuildthemintotheirplanning,weprovideextremeweatheralerts,andofferadviceandguidanceforreducingorrespondingtotheimpactofsuchevents.

Weshareourinsightandexpertisethrough ourwebsiteandsocialmediacampaigns.Theseincludetipsandguidestailoredtotheneedsofindividuals,families,smallbusinessesandlargeorganisations.ThroughourriskengineeringdatabaseRSAred,weidentifyandrecommendriskmanagementimprovementstoourcommercialcustomers.Forexample,onflooding,90percentofourrecommendationsrelatetoresponseplanning,while10percentrelate to physical improvements such as site defencesorchangesininfrastructure.

Totackleincreasingemissions,weneedtobemindfulofourowndirectimpact.That’s why we launched a new carbon emissionsreductiontargetthisyear.

Find out more in the ‘Sustainable operations’ section on page 34.

Theinsuranceindustrycaninfluence howothersectorsaddressclimatechangethroughthewaypremiumsareinvested anddecisionsonwhatcanbeinsured. In2019,welaunchedourClimateChangeandLowCarbonPolicypositiontoguide ourapproach.

Find out more in the ‘Responsible underwriting and investment’ section on pages 32 and 33.

We’ve adopted the recommendations of theTaskforceonClimate-relatedFinancialDisclosuresinourreporting.

See pages 47–49 of our Annual Report and Accounts for information on how we integrate climate change into our governance, risk management and business strategy.

In many cases, Canadians don’t know that they are at risk from flooding and aren’t sure what they can do to protect themselves. We have to band together as an industry, community and with all levels of government to do a better job in helping people recognise the risks they are exposed to and provide tools that result in immediate and sustainable solutions.”Anthony Black, National Catastrophe Manager, RSA Canada

“Spotlight on: Climate change

Our products and policies also help protectourcustomers.InCanada,weoffer‘Waterproofcoverage’forenhancedprotectionagainstdamagecausedbystormsandflooding,andintheUK,FloodReensuresthatcustomerslivinginhigh-riskfloodzoneshaveaccesstoinsurance.

100+flood victims visited our emergency response van for advice on flood recovery

18 Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance RSA – Confident Futures Corporate Responsibility Report 2019

Wevaluestrongrelationships,andstrive to understand and respond to the

needsofourkeystakeholders.We’recommittedtosupportingourcustomers,developingourcolleaguesandmaking

a positive contribution to the communitieswe’repartof.

Building stronger relationships

Our priority SDGs

Highlights

73% ofleaderstook

part in leadership development programmes

£1.85m invested to support local communities

In this sectionExcellence in customer care >

Aflourishingworkforce> Active in communities >

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 19 RSA – Confident Futures Corporate Responsibility Report 2019

We’re there for our customers every step of the way, from designing products that protect them from risks to helping them recover if things go wrong. We constantly challenge ourselves to respond to evolving needs and find new ways to make our service better, so that customers can be confident of a good outcome.

Excellence in customer care

Securing good customer outcomes Wearecommittedtosecuringgoodoutcomesforeverycustomer,ensuringthatnogroup’sneedsareoverlooked.Whileourcustomersrangefromindividualstomultinationalbusinesses,ourambitiontoprovidethemwithexcellentsupportandservicedoesn’tchange.

Ourstartingpointistoprovideeveryoneinourbusinesswiththeguidanceandsupporttheyneedtoactinourcustomers’bestinterests.Wealsomonitorarangeofindicatorsthathelpusassesswhetherwearedoingtherightthing,includingcustomersatisfactionandcomplaints.

There’s always more we can do to improve how we serve our customers and we don’t alwaysgetitright.Webelievethatbyactingonthefeedbackwereceiveandlookingtoexamplesfromothersectorswecankeeplearningandcontinuallyimproveourpractice.

Policy and trainingOur Customer Policy sits at the heart of our approachtodeliveringexcellentcustomercare.Itoutlineshowourstrategy,decisionmaking,productdesign,processesandcommunicationscanallcontributetogoodcustomer outcomes and sets out the steps thateachofourbusinessesshouldtaketoupholdthehighstandardsweexpect.

• Established dedicated forums to ensure customers are represented inallourdecisionmaking

• New investment in digital tools to improveourcustomermanagementinformation,monitoroutcomesandaddressemergingissuesfaster

• Simplified our organisation design and improvedmulti-channelcommunicationstomakeiteasiertointeractwithRSA

Our progress in 2019

IntheUK,thepolicyissupportedbyourConductFramework,whichguidesourdecisionsandensuresweserveourcustomerswell.Italsodocumentsthegovernance,processesandtoolsweusetoidentify,assessandmanagepotentialandactualrisksateverystageofthecustomerjourney.Werecognisethateveryonein our business needs to be familiar with the framework,andaresupportingitsroll-outwithe-learningandface-to-facetraining.

Customer committees and governanceOurregionalcustomercommitteesmeetregularlytounderstandhowthepolicyisworkinginpractice,reviewkeymanagementinformation and determine whether we need to makechangestoimprovecustomeroutcomes.

These committees help to ensure that our internalprocesses,digitaljourneysandcommunicationssupportgoodcustomeroutcomes,thatcomplaintsareinvestigatedandresolved,andthatwehavethemanagementinformationweneedtoguideourpractice.

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Meeting our customers’ specialist needs

IntheUK,ourMotabilitybusinesssupports customers with muscular andmobility-basedconditionsaswellasbraininjuriesandmentalhealthconditions.In2018,welaunchedtheCustomerConnectionsProgramme,trainingemployeestoprovideadditionalsupporttocustomerswithcognitivedisorderssuchasautismanddementia.Wenowhave75trainedautismchampions.During2019,theMotabilityteamwasrecognisedasanautism-friendlybusinessbyAutismTogether.

Meeting customer needs Securinggoodoutcomesforourcustomersstartswithunderstandingthem.Weknowthat our customers’ needs vary and continue toevolve,sowe’realwayssearchingfornewwaystoimprovewhatwedo.Weconstantlyseekfeedbackandaimtobringthevoiceofourcustomersintoourdecisionmaking,drawingonmarketresearch,feedbackpanelsandsatisfactiondata.

Product performance monitoringWe closely monitor how our products perform toensurewearemeetingcustomerneedsandexpectations.Productassessmentsarecompletedwheneverchangesareintroduced,helpingustounderstandhowourcustomersinteractwithourproducts.IntheUK,ourProductAssessmenttoolkitreviewsthecompatibilityofproductswithcustomerneeds.Thisyear,wehavedevelopedenhancedcustomer outcome metrics to monitor conduct throughtheproductlifecycle.

Family Aid – for our customers with child insurance

BasedonourinsightsintothelivesofSwedishfamilies,Trygg-HansaoffersauniqueFamilyAidservicetoallourchildinsurancepolicyholders.Theserviceprovidesguidancetofamiliesonaccessingsupportandadviceappropriatetotheirindividualneeds.Customersareentitledtoguidanceregardlessofdiagnosisorwhethertheygoontomakeaclaim.SinceFamilyAidwasintroducedin2013,thenumberofcustomersusingtheservicehasgrowncontinuously,witha59percentincreasein2019comparedto2018.

Supporting customers in difficult circumstances Ensuringgoodcustomeroutcomesisparticularly important if a customer faces difficultcircumstancesorhascomplexneeds.We aim to listen carefully and provide services thatmeettheirspecificrequirements,makingsurethatcustomerswhomightbevulnerable,excludedorlessfinanciallyresilientreceive theadditionalsupporttheyneed.

Product oversight groups Maintainingeffectiveproductoversightandgovernanceiscriticaltotheconsistentdeliveryofgoodcustomeroutcomes.We’veintroducedproductoversightgroupstoidentifywhetherany elements of our products and customer journeyshavethepotentialtoleadtocustomerharmorpooroutcomes,andtakeactiontoaddressthiswhereveritoccurs.Theymonitorarangeofinputsfromoursalesandclaimsteams,andreviewchangestobothexistingandnewproducts.

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Responding to feedback and complaintsSometimesthingsdon’tturnoutaswewouldhaveliked,andhowwerespondintheseinstancesisimportant.Weaimtomakeit easy for customers to raise concerns and havetheircomplaintsresolvedpromptly. Byaddressingissues,understandingtherootcauseofcomplaintsandmanagingincidentseffectively,we’reconstantlyseekingtoimproveour processes and products to enable fair and timelyoutcomesforourcustomers.

Hear from RSA colleague Helen on how our Claims team go above and beyond for our customers.

Consistently delivering excellent service It’s important that we do what we say we’ll do.Ourassessmenttoolsandframeworkshelpustomonitorourprogress,identifyareaswherewefallshortandmakeimprovements.Forexample,inCanada,theClaimsleadershipteamisusingcustomerexperiencemetricstoimproveprocesses,designmorecustomer-centric communications and introduce an onlineclaimsportal.

Being transparent and clearWeknowit’simportantthattheproductsandserviceswedesign,thesystemsweuseandthecommunicationsweshareareclear,fairandaccessibletoall.Thishelpscustomerstounderstandwhattheyarebuyingandwhetheritwilldeliverwhattheywant.Wealsoinvestinemployeetrainingsothatourcallhandlersofferthebestservicepossible,helpingourcustomerstomakeinformedchoices.

Meeting our customers’ needs

During2019,weredesignedourcustomerjourneysintheUKtoenhancehowweofferproductsthatbestmeetourcustomers’needs,inlinewithregulations.We’veupdated thequestionsweaskduringthepurchasingprocesssocustomersareonlypresentedwithproductsthatarerelevanttothem–forexample,notofferingbuildingsinsurancetopeoplewhoarerenting.

We’vealsogonefurther,respondingtocustomerfeedbackandtrendsincomplaintstomakeimprovementsoverandabovetheregulatoryrequirements.Forexample,customersnowactivelyacceptordeclineouradd-onscover,toreducetheriskthattheythinktheyhavecoverforsomethingtheydon’t.Throughthiswork,wehavemadechangesto100salesjourneys,withupdatesto19websitejourneys,14callhandlerguides,policydocumentationandtrainingformorethan750colleagues.Thesechangesmeanourcustomerscanmakemoreinformedchoicesaboutwhatiscoveredbytheirpolicy,reducingcomplaintsandimprovingcustomeroutcomes,andtheyhaveprovidedadditionalinsightstoinformproductdesign.

100sales journeys updated

750colleagues trained in new customer journeys

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 22 RSA – Confident Futures Corporate Responsibility Report 2019

Launching our claims advice line

InCanada,wepilotedanewadviceline in 2019 to provide customers with objectiveadviceabouttheirclaims.Thistool helps customers to decide whether makingaclaimisrightfortheirsituationafterspeakingwithoneofourservicespecialists.FollowingpositivefeedbackfromapilotconductedinOntario,we’veexpanded the claims advice line to Alberta,withplanstocontinuerollingouttoalargercustomerbase.

Next steps • ThroughourCustomer Improvement

Programme,focusonbehaviours thatsupportacustomer-centricapproach and improve our tools sothatweconsistentlydelivergoodcustomer outcomes

• Workacrossourregionstodevelop consistent minimum standards that underpin our Customer Policy

• Invest in technology to deliver positive changestothecustomerjourney,includingexpandingtheuseof speech analytics

Our digital-first mindset in Sweden

InSweden,we’veintroduced easy-to-usedigitalsolutionsthat simplifythecustomerjourney,inresponsetoagrowingpreferenceforonlineinteraction.Ourgoalistobealeadingdigitalinsurancecompany,andthisnewapproachhasgivenus access to richer data and deeper customerinsights.Forexample,ourphoto inspections for motor claims allow customers to send a picture of a damagedpartinsteadofhavingtodrivetoaworkshop.Thissavescustomerstimeandhassle,aswellasreducingCO2 emissionsfromunnecessaryjourneys.

Find out more about our sustainable claims solutions in the ‘Responsible supply chain’ section on page 37.

Evolving our approach in a changing world Digitisation Asweadapttoachangingworld,weareembracingdigitisationandmakingcustomerinteractions as easy as possible across allchannels.Wetrackcustomerfeedbackand respond to trends such as the rise in onlineinteractions.Wecontinuallyinvestintechnologysuchasourwebchatserviceand adoption of AI speech analytics tools to deliverapositiveexperiencewhileprotectingcustomerdataandsecurity.

InnovationWerecognisethatcustomershavetoweighupanumberofdifferentfactorswhentheyengagewithinsurers–thepriceofcover,theimpactaclaimmighthaveonfuturepremiumsandthebenefitsofdifferentproviders.We’realwaysseekingnewwaystoupdateandimprove ourpropositions,whetherthat’sbylaunchingnew services such as our claims advice line,recognisingcustomerloyaltythrough M>Rewardsordevelopingcoverfor emergingcyberrisks.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 23 RSA – Confident Futures Corporate Responsibility Report 2019

We want RSA to be a place where fulfilling careers are built. That’s why we’re creating a diverse and inclusive workplace and helping our people to develop the capabilities they, and our business, need to thrive.

Aflourishingworkforce

Building fulfilling careersTo secure a successful and sustainable businesswellintothefuture,weneedtoofferfulfillingcareersandbuildatalentpipelineofpeoplewiththerightskills.Ourpeoplestrategy,YourBestU,setsoutourambitionsforourworkforceandencouragesthemtobringtheirbestselvestoworkeveryday.During2019,weinvestedintheskillsandcapabilitiesofourpeopleatalllevelsofourorganisation.

Developing our business leadersWeofferleadershipdevelopmentopportunitiesthroughoutthebusiness,focusingonleadershipbehaviours,visionandvalues,listeningskillsandinclusion.Forexample,seniorleadersinCanada attended development academies offeredthroughtheIveyBusinessSchoolattheUniversityofWesternOntario.Morethan50leadersparticipatedinthesessions,with many more people leaders expected to completethetrainingin2020.MeanwhileourUKprogrammes‘ConnectedLeaders’and‘Accelerate’havereached240people.

InScandinavia,wehavefocusedonequippingleaderswiththeskillstoeffectivelycoachanddeveloptheirpeople,aswellastraining170leadersoneffectivechangemanagementtechniques.

Building capabilityWesupportourpeopletokeeppacewiththechangingneedsofourbusinessandprogresstheircareersthroughformallearninganddevelopment,aswellason-the-jobexperience,coachingandmentoring.

Our Technical Academy focuses on developingcoreinsurancetechnicalskillsacrosstheGroup.ThisyearwelaunchedanewtechnicalinductionprogrammeintheUKcoveringtopicssuchasreinsurance,claimsandportfoliomanagement.

Assessing employee engagementEverytwoyears,weundertakeaGroup-wideengagementsurveytounderstandhowempoweredandenabledouremployeesfeel.

Wearecommittedtoimprovingour2018engagementscorebyinvestinginleadership,developingahigh-performingculture,andpromotingwellnessandinclusion.

90% of employees believe there is good collaboration and teamwork

127,000 h urs invested in training by UK&I employees

100% of employees receive regular performance and career development reviews

• Delivered leadership development programmesacrossourbusiness

• Achieved target for 33 per cent of ourmanagementgrouptobewomen (34.6percent)

• 78 per cent of people leaders in the UK completed training onbuildinginclusive cultures

• Celebrated World Mental Health Day,empoweringcolleaguestotalkopenlyabout their own mental health

Our progress in 2019

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 24 RSA – Confident Futures Corporate Responsibility Report 2019

Employee gender diversity

UK gender pay gap

UK bonus pay gap

56% 44%

29%29.7%

Median

31.7%33.6%

Mean

39.3%15%

Median

75.1%69.1%

Mean

Leadership for success in Ireland

InIreland,weareafoundingpartnerofLIFT(LeadingIreland’sFutureTogether),aninitiativethataimstobuildbetterleadersacrossthecountry.WearealsoworkingwiththeIrishCentreforDiversitytodelivertrainingoninclusiveleadershiptopeopleleaders.

A diverse and inclusive workplace Celebrating differenceWe believe the best way to nurture a high-performing,engagedworkforceistocelebratedifferenceandenableourpeopletobringtheirtrueselvestowork.Wedothisbybuildingdiversityacrossalllevelsofourorganisationandcreatinganinclusiveculturethatattracts,encouragesandisstrengthenedbydiverseperspectives.

OurDiversityandInclusion(D&I)CouncilprovidesgovernanceforourD&Iactivity. TheGroupCouncilreviewsgenderrepresentation statistics every quarter and overseesprogressineachregionagainstourD&Istrategy.OurregionalD&ICouncilsaresupportedbychampionsandambassadors,focusedonbuildinganinclusiveculture.

Forthefirsttime,RSAsponsoredtheDive In Festival,aglobalmovementdedicatedtomakingtheinsuranceindustrymoreinclusivethroughinspirationaltalks,debatesandengagingcontent.RSAwasproud to support its social mobility session in London,apaneldiscussiononmentalhealthin Manchester and a session on the positive impactofinclusioninDublin.

Committed to gender balanceGenderbalanceisakeypriorityforRSAandtheinsurancesectorasawhole.In2019,wecontinuedourcommitmenttogenderdiversityandincreasingthenumberofwomeninseniorroles.

TheBoardiscommittedtoimprovingdiversityamongitsmembersandatseniormanagementlevel,andaspirestomeettherecommendationsoftheHampton-AlexanderReview:thatby2020,33percentofBoardrolesandatleast 33 per cent of senior leadership positions shouldbeheldbywomen.WearealsosignatoriestotheWomeninFinanceCharter.

In2019,wehaveachievedthesetargets,withwomenmakingup33.3percentofourGroupBoardand34.6percentofourmanagementgroup.

This is supported by our membership of the 30% ClubintheUK,whichaimstocreateastepchangeinthenumberofwomenattainingseniorandBoard-levelroles.Wealsorunanemployeeresourcegroup,RSABalance,empoweringfemaleemployeestoachievetheirpersonalandprofessionalambitions.

Our Gender Pay Gap Report sets out the clearactionswearetakingandtheprogresswearemakingtocloseourgenderpayandbonusgapsintheUK.

Target 33 per cent of our management group to be women by 2020.

Achieved

34.6%of management group are women

20182019

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 25 RSA – Confident Futures Corporate Responsibility Report 2019

Empowering our colleaguesWeunderstandthatdiversitygoesfarbeyondgenderbalance,andwewantallofourcolleaguestofeelthatRSAisaninclusiveandsupportiveplacetowork.That’swhyourUKbusinesshasrolledoutunconsciousbiastrainingtopeopleleaders.Thistrainingwillcontinuein2020,withleaderscascadingthe information down to their teams and encouragingopen,honestconversations.

The Board also supports the recommendations oftheParkerReviewonimprovingtherepresentation of diverse social and ethnic backgrounds.TheBoardaimstohaveatleastoneBAME(Black,Asianandminorityethnic)member,andwearecurrentlymeetingthisaim.

OurRSAPrideemployeeresourcegroupledour participation in Pride celebrations and marchesaroundtheworld.WeweresponsorsofSunderlandPride,whileinDublinandGalway,ourofficeswerebrandedwithrainbowcolours,signallingourcommitmenttoD&Itocustomersandmembersofthepublic.

Beingtrulyinclusivealsomeansrecognisingthe value that local talent can add to our business.Forexample,inourMiddleEasternbusiness,wehavebeenattractinganddevelopinglocaltalentfromSaudiArabia,OmanandtheUAE.Morethan40localcolleaguesfromOmanhavebeenpromoted toteamleaderpositionsinourcallcentres.

Being inclusive and supportive really allows employees to come to work and be their best selves. That’s a real focus for us and it’s vital to a successful organisation.”Donna Ince, Senior Vice President, Personal Lines, RSA Canada

“

RSA is a member of Working Families, a charity that helps working parents, carers and their employers to find a better balance between responsibilities at home and in the workplace.

RSA is an accredited Living Wage provider.

Supporting development through apprenticeships in the UK

In2019,RSAjoinedThe 5% Club. Aspartofthecommitment,atleast5percentofRSA’sworkforcewillbemadeupofapprentices,sponsoredstudentsandnewgraduatesoverthenextfiveyears.

Currently,278RSAemployeesareonapprenticeshipprogrammesandweaimtodoublethisby2022,helpingnewandexistingemployeestolearnonthejob.

Hear from RSA colleague Adam on how he joined RSA as an underwriting apprentice this year.

Learn more about why an inclusive culture is so important at RSA in this short video.

2019/2020

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 26 RSA – Confident Futures Corporate Responsibility Report 2019

Championing mental health With a positive attitude to mental health an ever-increasingpriorityforus,weencourageourpeopletospeakopenlyabouttheirmentalhealthandtoaskforhelpwhentheyneedit.

OnWorldMentalHealthDay2019,ourUK&ICEO,ScottEgan,joinedasmallgroupofcolleaguestorecordapodcastdiscussingmentalhealth,resilienceandtheirpersonalstories.Thesessionwasshared on our website andstreamedmorethan300times.

OurUKandCanadianbusinessessupportemployeesexperiencingmentalillnessthroughtheirnetworkofMental Health First Aiders.OurCanadiancolleaguesalsoparticipatedinthe‘Notmyselftoday’campaign,fosteringmentallyhealthyworkplacesinpartnership with the Canadian Mental Health Association.Inaddition,ourEmployeeAssistanceProgrammes,whichofferservicessuchascounsellingandexpertadviceondealingwithlifeeventsandconcerns,areopentoemployeesacrossarangeofsiteswhoarelookingforextrasupport.

Read more about how we’re supporting mental health through community partnerships on pages 28 and 29.

Next steps • Focusongender balance, wider

inclusion and unconscious bias trainingacrosstheorganisation

• Continue to build high-performing teamsacrossourregions,takingintoaccountvaryingworkforcecultures

• Develop and reinforce our culture throughperformancemanagementtoolsandtraining

I’m really pleased that we recognise the equal importance of mental health alongside physical health as part of our workplace wellbeing. We are working hard to nurture a supportive and open environment where all colleagues know where they can access additional support whenever needed.” Tony Bough, UK Head of Health, Safety and Wellbeing

“RSA Canada recognised as a top employer

The RSA Canada team was named as one of Canada’s Top 100 Employersfor2020,acknowledgingitsdiverseandinclusiveculture,commitmenttohighperformance,learninganddevelopmentopportunities,andsupportforcommunityactivities.

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We value our relationships with the communities we’re part of. Through encouraging employee volunteering and supporting local causes, we can make a positive difference to the people and places around us.

Active in communities

Long-term community investment partnerships It’simportantthatweworktostrengthenourlocalcommunities–whetherthat’sthroughhelpingpeopleintimesofneedorbyempoweringouremployeestosupportthecharitableorganisationsthatmattertothem.

Throughout2019,wefocusedoncreatingmorestrategiccommunitypartnershipsinlinewithourambitionsforriskeducationandbehaviourchange.Thesepartnershipsarealignedwithour Smarter Tomorrow objectives,andofferour people the chance to share their time and expertisewiththeircommunities.

Thisyear,we’vefocusedonthefollowing:

• Water safety–raisingawarenessoftherisksarounddrowningandhostingsummerswimschoolsforchildrenthroughourpartnershipwiththeSwedishLifeSavingSociety

• Road safety–promotingresponsibleactionsthroughourTruceTOcampaigntocreatesaferstreetsforcyclists,driversandpedestrians,andsupportfortheannualNationalReflectorDayinScandinavia

Read more about these partnerships in the ‘Shaping a smarter tomorrow’ section on pages 10 to 18.

Making a difference in our communities Aswellasfocusingonriskeducation,wesupportlocalcauseslinkedtomentalhealth,socialinclusion,educationandemployability,andenvironmentalimprovement.

Mental health Byworkingwithnationalandlocalorganisations,we’reaimingtoreducethestigmaaroundmentalhealthandseekingtopreventandtreatmentalillness.OurSwedishbusiness,Trygg-Hansa,insuresapproximately750,000childrenandyoungpeopleandrecognisestheneedforgreateradviceforchildrenandfamiliesexperiencingmentalhealthissues.

WehavepartneredwithChildren’sRightsinSociety(BRIS)since2018,toincreaseawarenessandknowledgeaboutchildren’smentalhealthandtheimportanceofgivingearlysupport.Ourfinancialsupportin2019funded a BRIS support coordinator to help provideadvicearoundtheclock.

• Invested £1.85m in local communities throughcash,timeandin-kindcontributions,anincreaseof18percent

• Established long-term partnerships thataddresssafety,mentalhealthand education

• 11,911 hours of employee volunteering in2019,a45percentincrease

• Adopted the London Benchmarking Group framework to measure and report our corporate community investment

Our progress

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 28 RSA – Confident Futures Corporate Responsibility Report 2019

Community investment by theme

Risk education 16%

Mental health 7%

Social inclusion 10%

Education and employability 30%

Environment 7%

Other 30%

Social inclusion Ourpeoplearepassionateabouttacklingissues such as homelessness and isolation amongtheelderly.In2019,10percentofourcommunityinvestmentwenttoaddressingsocialinclusion.InDenmark,weestablishedanewfocusforourcommunityworkwithÆldreSagentosupportvolunteerswhovisitolderpeople,whileourUKemployeesraised£45,000forsocialinclusionprojects.

Education and employability AcrosstheGroup,ouremployeessupportededucationandemployabilitybyvolunteeringinschoolsandcommunitygroupstosharetheirskillsandexperience.IntheUK,forexample,240youngpeoplebenefittedfromourworkwithEastLondonBusinessAlliance(ELBA), the Skills Builder PartnershipandLondonLinks,withemployeesdedicating900hours tocareerinsightdays,mentoringandactivitiestoimprovesocialmobility.

EnvironmentIn2019,sevenpercentofourcommunityactivitysupportedenvironmentalaction,withemployeesparticipatinginarangeofconservationandenvironmentalactivities, fromimprovinglocalparksandwoodland toinitiativesdesignedtoreducewaste.

Conservation awards

IntheChannelIslands,theInsuranceCorporation hosts annual conservation awards,withatopprizeof£2,000goingtoacommunity-basedorganisationtoputtowardsenvironmentalinitiatives.Winnersin2019includedTheSoilFarm,aprojectthatmanageswastestreamsinGuernseytoregeneratesoilhealth,andTheDolFinProject,whichresearchesdolphinsintheBailiwickwaters.Wealsorecognisethebestschoolprojectandayoungconservationistoftheyear.

Mental health support for colleagues

Weencourageallourcolleaguestohaveopen conversations about their mental healthandtalkaboutanydifficultiestheymaybefacing.OurUKnetworkofmentalhealthfirstaidersareonhandtooffersupportandholdnon-judgmentalconversationswithcolleagues.

Mental health is very important to our company, our employees and our customers. We wanted to do our part to help change the conversation and empower individuals to address an issue that impacts each and every one of us.” Ken Bennett, President, Johnson Insurance

“

InCanada,webecamethefirstofficialcorporate partner of A Dollar A Day,raisingfundsinaidoffront-linementalhealthandaddictionprogrammes.During2019,wehostedemployeeawarenessandfundraisingevents,andcontributedmorethanCAN$100,000to thepartnership.InOctober,weteamedupwith A Dollar A Day in support of World Mental HealthDay,raisingmorethanCAN$10,000forfront-linementalhealthorganisationsthrough amonth-longemployeecontest.

Read more about how we’re championing mental health among our employees on page 27.

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£10,000

Total community investment

2019 2018 2017 2016

Charitable donations (£) 1,365,064 1,305,148 1,423,358 1,315,931

Volunteering value (£) 330,616 239,587 248,971 168,115

Gifts in kind value (£) 149,730 12,818 68,269 105,917

Total value of cash contributions (£) 1,845,410 1,557,553 1,679,158 1,589,963

Leveraged funds: Employee fundraising (including payroll giving) (£) 312,702 285,276 265,928 153,830

Volunteering hours 11,911 8,193 13,636 14,428

Average volunteering hours per FTE 0.97 0.67 0.42 0.46OurcommunityinvestmentvaluesarereportedinlinewiththeLondonBenchmarkGroupguidelines.

Next steps • Engage and enable more colleagues

to participateincommunityactivities,particularlythroughvolunteering

• Align our Smarter Tomorrow partnerships more closely to our communityprogrammesthroughemployee-ledactivities

• Scale up our new partnership with Ældre Sagen in Denmarktotacklelonelinessandisolationamong the elderly

Empowering employee volunteering We want our people to feel connected to theirlocalcommunities,soweoffereveryRSAcolleagueanannualtwo-dayvolunteeringallowance.Thisyear,werelaunchedourCommunity Investment Policy,andwe’veseenamarkedincreaseinsupportforcommunityactivitiesacrossourregions.

IntheUK,wehavealsostrivedtomakecommunityvolunteeringmoreaccessibleforourcall-centreemployees.ThishelpedustoincreasevolunteeringwithinourUKbusinessby55percentin2019,withcolleaguescontributing7,330hourstocommunityactivities.

InCanada,ourDollarsforDoersschemeenablescolleagueswhoreach100volunteerhourstoapplyforaCAN$500donationtotheirchosencharity.

Find out what inspires RSA colleague Jabraan Shazad, chair of our Manchester charity committee, to become a volunteer.

Cleaning up in Canada

Inthesummerof2019,375volunteersfromRSACanadajoinedWWF-Canada’sGreatCanadianShorelineClean-upforthethirdconsecutiveyear,collecting586kgoflitter.Volunteerstooktobeachesandriverstoremoveplasticsandotherwaste,aspartofourlong-standingpartnershipwithWWF-Canada,whicheducatescolleaguesabouttheimpactofplasticsonouroceans,wildlifeandcommunities.

Matching donationsRaisingmoneyforcharitiesisimportantto ourpeople,whichiswhyweofferapopularmatch-fundingschemeintheUKandCanada,andpayroll-givingschemesintheUKandIreland.Bymatchingourpeople’sownfundraising,we’veseenemployeesleverage£312,700thisyear.

Combined with our employee contributions oftimeandstrategiccommunitypartnerships,these activities contributed to a total investmentof£2.16min2019.

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Wewantpeopletobeconfidentthatwe’rerunningourbusinessinthewaythey’d

expect.Thismeansbeingresponsibleinourinvestmentandunderwritingpractices,thoughtfulinourchoiceofsuppliersand

partners,andmindfulofour environmentalimpact.

Managing the everyday well

Highlights

31% reduction in carbon

emissions since 2016

80%ofUKsuppliersassessed

onESGmanagementthroughnewsupplierdue

diligenceportal

Our priority SDGs

In this sectionResponsibleinvestmentandunderwriting>

Sustainable operations > Responsible supply chain >

Customer privacy and data security > Businessintegrity>

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 31 RSA – Confident Futures Corporate Responsibility Report 2019

The choices we make about our investments and the risks that we underwrite are an important opportunity for positive impact. We are working to embed environmental, social and governance (ESG) considerations into these decisions.

Responsible investment andunderwriting

Decision making for the long termWearerespondingtotheexpectationsofourstakeholdersbyconsideringESGcriteriainourdecisionmakingandouroperations.AsasignatorytotheUnitedNationsPrinciplesforSustainableInsurance(UNPSI)andamemberofClimateWise,it’simportantthatwemakeinformeddecisionsaboutthetypesofriskwechoosetounderwriteandwhereweinvestourpremiums.

Tooverseeourapproach,wehaveestablishedanESGCommittee,chairedbyourGroupChiefRiskOfficerandcomprisingseniorrepresentativesfrominvestment,underwritingandriskteams.Thecommitteeisresponsibleforassessingkeyissues,recommendingourcompanypositionandmonitoringhowtheseareintegratedintobusinesspractices.

In2019,thecommitteereviewedESG issuesassociatedwithhigher-risksectors anddevelopedanewGroup-widepolicypositiononsupportingthetransitiontoa low-carboneconomy.

Promoting the transition to a low-carbon economyIntroducing our Climate Change and Low Carbon Policy Withchangingweatherpatternsandmorefrequentandextremeeventsincreasingtheriskofpropertydamageanddisruptiontobusinessoperations,theinsuranceindustryhasanimportantroletoplayinunderstandingandrespondingtoachangingclimate.

Wearecommittedtocontributingtoeffortsthat reduce carbon emissions and accelerate thetransitiontoalower-carbonfuture.Werecently launched our Climate Change and Low Carbon Policy,whichoutlinesourroleininsuringrenewableenergygenerationprojectsandrestrictscapacityavailableto,andinvestmentsin,carbon-intensiveindustries.

Insuring renewable energyRSAhasamarket-leadingpositionasaninsurerofrenewableenergywithlong-standingexpertise.Renewablescurrentlymakeup 65percentofourenergyunderwritingportfolio–wellabovetheglobalenergymix.

OurRenewablesteamsintheUKandDenmarkunderwriterenewableenergyprojectsacrosstheworld,providingcoverfortheconstructionandoperationofwind,solar,hydroandbioenergyprojects.Theyworkclosely with manufacturers and developers toadviseonhowbesttoreducerisksandsupportclaimsforupcomingprojects. Ourglobalteamofexpertsformarenewableenergy‘centreofexcellence’,offeringinsuranceateverystageofaprojectlifecycle.

See ‘Building resilience on climate change’ on pages 16 to 18 to find out more about our work on climate resilience.

• Launched our new Climate Change and Low Carbon Policy position coveringinvestmentsandunderwritingofcarbon-intensiveindustries

• Collaborated with industry peers todevelopguidanceonESGissues inunderwriting

• Developed a Group-level approach to assess material ESG concerns and prioritise actions

Our actions in 2019

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 32 RSA – Confident Futures Corporate Responsibility Report 2019

Responsible underwriting We’recommittedtocarefullyevaluatingtherisksweunderwriteandworkingwithourcustomerstopromotesustainablebusinesspractices.

OurUnderwritingPolicyisalignedtoourriskappetite,coveringissuessuchasfinancialcrime,moneylaunderingandsanctionscompliance.Wemanagesocialrisksbyconductingsanctionsscreening,creditandKnowYourCustomerchecks.Ourriskcontrolsteamswillassessvulnerabilitytoweatherrisksandhealthandsafety,wheretheyundertakeonsiteassessments.

During2019,ourunderwritingteamsintegratedourClimateChangeandLowCarbonPolicyintoourriskappetiteandprocessestoenableustomanageournewpositioneffectivelyfrom1January2020.

An important part of our approach to responsibleunderwritingisourhigh-riskcountryframework.Whereamatterislinked toacountrythatRSAdeemstobeofhigh

Collaborating to develop industry guidance

Workingwithindustrypeers,RSAsupportedtheUNPSI’sinitiativetodevelopthefirstglobalguidetomanageESGrisksinunderwriting.Theguidanceaims to help commercial insurance businessestointegrateenvironmentaland ethical considerations into core businessprocessesanddecisionmaking.Theresultofamulti-yearPSIinitiative,theguidancewasreleasedforpublicconsultationin2019.

Find out more and access the guidance online.

risk,theframeworkprovidesguidanceandrequirementsthatreferthewritingofcertainbusiness or the payment of certain claims toamoreseniorlevel.

We screen all transactions to ensure compliancewithsanctions.Wherehumanrightsandmodernslaveryrisksareconsideredtobehighforspecificcountries,oursystemsprovideanadvisorytounderwriters.

Responsible investment We believe a positive approach to ESG issues isagoodindicatorofthequalityofabusiness’smanagementpracticesandthelikelihoodofitslong-termsuccess.OurInvestmentteamconsiders the ESG policies that external fund managershaveinplaceaspartoftheappraisalprocessforonboardinganynewmanagers.OurcorefundmanagersaresignatoriestotheUNPrinciplesforResponsibleInvestment(PRI),demonstratingtheirongoingcommitmenttoresponsibleinvesting.

9 % funds managed by signatories to the UN PRI

We also use specialist data sets to review the overall ESG performance of our investment portfolio and provide more detailed information onspecificinvestmentswhenrequired.ThedevelopmentofourClimateChangeandLowCarbon Policy position in 2019 formalised the requirementswegivetofundmanagerswhomanageinvestmentsonourbehalf.

Next steps • Continue to improve how we manage

our underwriting and investment exposure to sensitive sectors

• Review how we evaluate potential ESG risks in our investment and underwritingactivities,inaccordancewithUNPSIguidance

• Work with external fund managers to further understand their processes to consider ESG issues in investment decisions

We insure more than 100 offshore wind farms around the world

Asaleadinginsurancepartnerforoffshorewind,ourDanishbusiness,Codan,continuestosupporttheindustry’sdevelopment.Forexample, we are actively involved in several offshorewindfarmsunderconstruction inTaiwan,whichwillsecurecleanenergyformorethan200,000homes.

Find out how we’re improving the sustainability of our own operations on pages 34 and 35.

£ Hear from RSA colleague Sarah on our work to launch our new Climate Change and Low Carbon Policy position.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 33 RSA – Confident Futures Corporate Responsibility Report 2019

Climate change, pollution and pressure on natural resources affect our people, our customers and the communities we work in. We’re working hard to reduce the impact of our operations by reducing carbon emissions, switching to renewable energy and using resources more efficiently.

Sustainable operations

Reducing our carbon footprint Our focus on sustainable operations saw significantprogressin2019.Weachieveda 31 per cent decrease in carbon emissions comparedto2016,withreductionsacrossallourkeyregions,andsetanew2030carbonreductiontarget.

Carbonemissionsfromourenergyusehavedecreasedby29percentsince2016.Thishasbeendrivenbyafocusonreducingthefootprintofourestateandmovingtonewer,moreefficientbuildingsaswellasretrofittingkeypropertieswithLEDlightingandmoreefficient

Setting a new carbon reduction target towards 1.5˚C

During2019,weworkedwithanexternalconsultancy to set a new carbon reduction target:toreduceemissionsby50percentby2030.Thisgoal–overseenbyourESGCommitteeandapprovedbyourBoard,alongsideourClimateChangeandLowCarbonPolicyposition–alignswiththescience-basedtargetmethodologyasfarascurrentlypossible,andwillbereviewedwhenthesector-basedapproachforfinancialservicesisreleased.Thetargettakesintoaccountthelevelofdecarbonisationrequiredtokeepglobaltemperatureincreasebelow1.5˚C.

Forthefirsttime,wemodelledandanalysedallcategoriesofscope3emissionsdefinedintheGreenhouseGasProtocolguidance.Thishelpedus to identify where emissions are highestandprioritisewherewehavethegreatestopportunitytoinfluencethirdparties,particularlywithinoursupplychain.Theemissionsfromourmostmaterialscope3emissionscategories–purchasedgoodsandservices,andourinvestmentportfolio–totalledmorethan1 million tonnes CO2e.

Althoughourtargetcurrentlyappliestoour direct emissions and emissions from businesstravel,wewillinvestigatehowwe can reduce the emissions associated withourwideractivities.

equipment.Energyusefellby10percentcomparedtoour2016baseline,representingareductionof4.8millionkWhofenergyconsumption.Ourreductioninemissionsalsoreflectsthelowercarbonintensityoftheenergyweusedoverthisperiod.

We have also achieved a 36 per cent reduction in emissions associated with business travel bydiscouragingairtravelandpromotingtheuseofmorefuel-efficientvehicles.In2019,we launched a new business travel policy in Scandinaviatopromotesustainabletravel.Thiscontributedtoa35percentreductioninbusiness travel emissions compared to 2018 andtheavoidanceof6millionkilometresofairpassengertravel.Wewillcontinuetoreviewourbusiness travel policies to identify opportunities toincentiviselow-carbontravelandencouragealternativessuchasvideoconferencing.

• Achieved a 31 per cent reduction in carbon emissions since 2016 and 10percentreductioninenergyuse

• Set a new carbon emissions target toachievea50percentreduction by 2030

• Started a programme to switch to renewable energyatkeysites across our operations

Our actions in 2019

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 34 RSA – Confident Futures Corporate Responsibility Report 2019

Reducing waste and using resources more efficiently Wehavebeentakingsignificantstepstoreducewaste,byremovingsingle-useplasticsfromourglobaloperationsandreducingpaperuseby35percentsince2016.

Ourongoing‘printresponsibly’campaigninCanadadrivesactionbyencouragingemployeestopledgetoreducetheirpaper usethroughadata-drivencompetition. As we continue to move to more paperless processes,ourITteamhavereducedtheprintingdevicesatmajoroffices,reducingfuturepaperuseandtonerwaste.PaperCutsoftwarehasbeeninstalledontheremainingdevicestotrackpaperconsumptionandCO2production.

InScandinavia,ourSwedishbranchhasan ambitious plan to reduce the number of printed policies and documents sent to customersbyencouragingthemtomovetodigitalcommunications.In2019,thenumberofcustomersoptingtoreceivetheirinsurancepolicies online increased by 17 per cent and paperusereducedby25percent.

Managing environmental impacts Our actions to reduce our environmental impactaregovernedbyourGroupEnvironmentalPolicy.In2019,weconductedagapanalysistoensureitsrequirementsareunderstood and implemented correctly across thebusiness.

31% reduction in carbon emissions since 2016

24% of energy from certified renewable sources

3 % reduction in waste since 2016

Carbon emissions by scope in 2019

Scope1:17%

Scope2:38%

Scope3:45%

Aspartofthisassessment,we’vetakenopportunitiestoimproveourreportingmethodstodemonstrateourcommitmenttoreportingtransparentlyonclimate-relatedissues:

• We have started to adopt the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) in our Annual Report and Accounts (seepages47–49)

• We report to external organisations, including ClimateWise and scored a B in CDP,demonstratingourcommitmenttoreportingtransparentlyonclimate-related issues

Hear from RSA colleague Francesca on the actions we’re taking to improve the sustainability of our offices.

Switching to renewable energy Toreduceourcarbonfootprint,wehavesetaGroup-widetargettosource100percentrenewableelectricityforourestateby2025.WearealreadyswitchingtoRenewableEnergyGuaranteesofOrigin(REGO)-backedrenewableenergysourceswherewedirectlycontrolprocurement,whichwillavoid 1,700tonnesofcarbonperyear.Wearealsoactivelyengagingwithlandlordstoenablethetransitiontorenewableenergyacrosstheremainderofourestate.Around24percentoftheenergyweusedcamefromcertifiedrenewablesourcesbytheendof2019.

Find out how we’re supporting the transition to a low-carbon economy by underwriting renewable energy projects on pages 32 and 33.

Next steps • Engage landlords for leased

properties to transition to renewable energysupplies

• Continue to improve the energy efficiency of our property portfolio with planned moves to new facilities

• Work with colleagues to further reduce emissions from business travel throughonlinemeetingsandfewerflights

Greenhouse gas emissions 2016–2019 (tCO2e)

Scope 1 Scope 2 Scope 3

2019

2018

2017

2016

CarbonemissionsindependentlyassuredbyPwC;youcanreadtheAssuranceOpinionhere.

3,096

2,673

3,019

2,807

8,665

9,687

11,243

10,938

12,294

13,538

22,276

25,000

27,588

7,202 8,551 18,849

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 35 RSA – Confident Futures Corporate Responsibility Report 2019

As a responsible business, we consider the impact of our activities beyond our own operations. We monitor and manage the environmental and social impacts of our supply chain and work collaboratively with our suppliers and partners to share best practice.

Responsible supply chain

Managing our supply chain Social and environmental issues are consideredduringpurchasingdecisions,andweaimtouseourbuyingpowertoeffectpositivechange.WechoosetoworkwithpartnersthatholdthesamehighstandardsasRSA,deliverhigh-qualityproductsandservices,andrespectthecommunitiesandenvironmentinwhichtheyoperate.

Our Third Party Contracts Policy sets out the controls we have in place for our procurement processes and the conduct we expect from ourpartners.Thisincludessupplierselection,riskassessments,contractingandongoingmanagement.Thisissupplementedbyourpublicly available Supplier Code of Conduct,whichoutlinesourexpectationsonkeyissuessuchasenvironment,ethicsandcommunityinvestment.Thecodeisincorporatedintonewcontractsandagreementsaswellasourduediligencesystem.

Duringselection,weconductchecksonthepoliciesandmanagementpracticesofsuppliersonissuesincludinginformationsecurityanddataprotection,anti-briberyandcorruption,customertreatment,labourpractices,humanrightsandenvironmentalmanagement.

Wealsoengagewithoursuppliersthroughouttheyear.During2019,oursupplychainmanagersintheUKandSwedenliaiseddirectlywithlargersupplierstobetterunderstandhowtheyintegratesustainabilityintotheiroperations.IntheUK,theCorporateResponsibilityteampresentedtheConfidentFuturesstrategytomorethan70keysuppliersatourannualsupplychainconference.

Improving supplier management During2019,weimplementedaprogrammetoimprovethird-partymanagementacrossourUKandIrishbusinesses.Thismoreeffectiverisk-basedapproachwillhelpustoassesstherisksassociatedwithaserviceorproduct,ratesuppliers’managementpracticesandenablehigh-risksupplierstobereferredforfurtherscrutinybysubjectmatterexperts.Wealsoadoptedanewsuppliermanagementplatform,throughwhichwehaveassessed80percentofoursuppliersagainstESGissues,includingtheirenvironmentalpolicies,dataprotectionandhumanrights.

In2020,wewillworkwithourregionalmarketstoestablishhowthelessonsfromthisworkcanbeadoptedacrossthebusiness.

of UK suppliers assessed on environmental and social issues

• Increased supplier engagement on corporate responsibility topics acrossourproperty,motorandlegalsupply chains

• Reviewed and updated our third-party supplier management process in the UKtoadoptarisk-basedapproach

• Screened 80 per cent of our UK suppliersthroughournewsupplier duediligencesystem

Our actions in 2019

8 %

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 36 RSA – Confident Futures Corporate Responsibility Report 2019

Sustainable windscreen claims

Around 70 per cent of windscreen chips turnintomoreproblematiccrackswithinamonth.Byencouragingcustomerstorepairchippedwindscreenspromptly,we’repromotingsustainableclaims. OurScandinavianandUKbusinessesworkwithsupplierstoinformcustomersabouttheenvironmentalandcostsavingsassociatedwithwindscreenchiprepairs.Repairingachiptakes30minutes,comparedwiththetimetakentoorderandreplaceawindscreen,andit’salsomorecost-effectiveandresourceefficient.

In 2019, 40,000 chip repairs produced the following benefits:

1,500 tonnes of carbon emissions avoided

540 tonnes of glass waste kept out of landfill

£13.7m cost saving from avoiding windscreen replacements

It’s really important that we continue working with our supply chain to deliver sustainable claims solutions for our customers that not only deliver great service but also minimise the impact on the environment.”Mark Baker, Head of UK Claims Supply Chain, RSA

“Raising awareness of modern slavery and human trafficking Asaninsurancecompany,ourexposuretomodernslaveryandhumantraffickingislimited,butrisksarepresentinpartsofourmotorandbuildingsupplychains.OurdirectandindirectprocurementteamsintheUKcompletedaone-day,face-to-facetrainingcourse focused on the potential exposure to modern slavery across our supply chain andhowtoidentifykeysigns.

Working with social enterprises During2019,ourUKbusinessbeganworkingwith several social enterprises that maximise positivesocialandenvironmentalimpact.Forexample,tosupportoureffortstophaseoutsingle-useplastics,wecommissionedtheCommercial Foundation to provide branded ceramicmugsforouroffices.Thesocialenterprisehelpsyoungpeoplefromchallengingbackgroundstofindlong-termemploymentandbuildtheirconfidence.Byworkinginthisway,we’vegenerated£117,000ofadditionalsocialvalue,with86percentoftheyoungpeoplethefoundationemploysgoingontosecureworkorfurthertraining.

Delivering sustainable claims solutions for our customers Weencouragea‘repairoverreplace’philosophyandworkhardtodeliversustainableclaimssolutionsforourcustomers.This has been particularly successful with motorclaimsinourUKandScandinavianoperations,whereweincentiviserepairers tofixpartsratherthanreplacethemwhereverpossible.IntheUK,wecarriedoutarepair forevery3.8partsreplaced,comparedto anindustryaverageof6.4.

In2019,analysisofourscope3emissions(see‘Sustainableoperations’onpage 34)identifiedmotormanufacturingandrepairasoneofthemostemissions-intensivepartsofoursupplychain.Repairingratherthanreplacingpartsbringsenvironmentalbenefitssuchasreduceddemandforrawmaterials,fewerproductsbeingshippedfromoverseasandlesswaste.

Find out how RSA colleague Andy works with suppliers to find solutions that benefit our customers and the environment.

Next steps • Review and update our Third Party

Contracts Policyinlinewithevolvingexpectations

• Work to embed ESG issues into our supply chain performance managementprocess

• Understand our suppliers’ carbon emissions targets and commitments to adopt more sustainable practices

8 %

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 37 RSA – Confident Futures Corporate Responsibility Report 2019

In the modern world, our reliance on data is growing exponentially. That’s why it’s essential that our customers trust our people and our systems to protect their privacy and keep their information safe from misuse.

Customer privacy and data security

Mitigating data security threats Our systems and processesGuidedbypoliciesandprocedurescoveringinformationsecurity,cybersecurityanddataprotection,wemakesureinformationiscollected,storedandusedresponsibly. Ourdata-relatedpoliciessitwithinourGroup-wideriskandcompliancestructure.They arereviewedannuallyandregularlyaudited.

Weusecontrolssuchasfirewalls,intrusiondetection systems and other security technologiestohelpdefendoursystemsfromattack,regularlyreviewingandrefreshingthemtoaddressnewandemergingthreats.Throughourcyberresilienceprogramme,weadoptarisk-basedapproachandhaveamulti-yearcommitmenttoinvestingintechnicalandprocesscontrolstobuildresilience.

In2019,weconductedanadvancedcybersecuritypenetrationtestingexerciseinconjunctionwiththeUKregulator,toevaluateour defences and enable us to continuously improve our ability to detect and respond to emergingthreats.

Employee trainingEmpoweringourcolleaguestotakethestepsrequiredtoprotectourorganisationiskey.Weprovidecomprehensiveresourcesandguidanceoncustomerprivacyanddatasecurityviaourintranet.Weregularlyengagewithcolleaguessothey’reawareofthreatsandknowhowtoreportanythingthatmakesthemsuspicious.Thisincludescarryingoutregularphishingcampaignstocheckourmanagementproceduresarerobust.

Everyone at RSA completes annual mandatory trainingoncybersecurity,dataprotectionandinformationsecurity,whichprovidespractical advice on how to protect data while highlightingthatthemisuseofdatabyanemployeecouldresultindisciplinaryaction.

• Invested in a multi-year cyber resilience programme to improve security capability

• Tested our information security defences to assess and improve our ability to detect and respond toreal-worldthreats

• Undertook a simulated training exercise to test our response to acyber-relatedincident

Our actions in 2019

Continuous improvement Ourexpertinformationsecurity,dataprotectionand compliance teams protect and support ourbusiness,managingpoliciesandcontrols,assessingrisksandrestrictinginappropriateaccesstoinformation.TheresponsibilitiesoftheChiefInformationSecurityOfficerineachregionareoverseenbyourGroupChiefInformationOfficer,whoultimatelyreportstoourGroupExecutiveCommittee.

Thisyear,wehavefurtherstrengthenedourinternalcapabilityincoreregionsbycontinuingtoengagecybersecurityspecialistsandintroduce new or enhanced capabilities in line withtheirrecommendations.Theonboardingof new tools and processes within our security operations function has also improved the visibility that we have over our IT infrastructure andabilitytoprotectinformation.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 38 RSA – Confident Futures Corporate Responsibility Report 2019

Next steps • Continue to improve our systems andtrainingoncontinuallyevolvingprivacy and security threats

• Embed the use of a Third Party Contracts Policy to assess and managetherisksassociatedwithorganisationsweworkwith

• Continue the delivery of our cyber resilience programmes

Cyber security awareness

In2019,weraisedawarenessofcybersecurityacrossourbusiness.TheInformation Security team in Canada used Cyber Security Awareness Month in October as an opportunity to share cyber securitytipsonYammer,ourinternalsocialmediasite.

OurUKteamranaCybersmartcampaign,usingaroadshowtoadvisecolleaguesinourofficesonhowtostaysafeonlineathomeandatwork.Wealsoconductedatrainingexercisewithkeystakeholdersthat focused on our ability to respond to andrecoverfromacyber-relatedincident.InNorway,220colleaguesparticipatedin awareness sessions about General DataProtectionRegulation(GDPR)andincidentmanagement.

Hear from RSA colleague Phoebe on our UK cyber security awareness and culture campaign.

Cyber risk insurance Cyberrisksareaseriousandgrowingthreattoalltypesandsizesofbusiness,but traditional policies will only cover some ofthepotentialimpacts.That’swhywehavedevelopedcyber-specificinsuranceproducts,whichprovidecoverforarangeofpossiblelosses,includingsignificantcyberresponsecostsrelatedtonotification,ITforensics,creditmonitoringandidentitytheft.

Cyber security protection

Today’sorganisationshaveacriticalrelianceoninformationtechnologytoconducttheirbusiness.Everyaspectofourlivesisincreasinglyaffectedbythegeneration,transfer,storageandanalysisofdata,andtheinfrastructurethatsupportsit.

Our Cyber Protection insurance covers the typical costs associated with a cybereventand,inpartnershipwithCrawford,provides24/7incidentresponse capability to support an organisation’sowncrisismanagement. Our policies provide cover options includingnetworksecurity,regulatorycostsandpenalties,cyberbusinessinterruption,cyberextortion,paymentdiversionfraud,breachresponse,communication advice and crisis managementsupport.

Respecting customer privacy Respectingourcustomers’privacyisessentialtomaintainingtheirtrustinourbusiness. Ourapproachcovershowwecollect,useandmanageourcustomers’personaldatatomakesurewerespecttheconfidentialityofsensitiveinformation and any choices customers have maderegardingtheuseoftheirdata.TheGroup Executive Committee oversees the implementationofourprivacypolicies,whileday-to-dayresponsibilityforcustomerprivacysitswithregionalmanagementteams.

Minimising risk from third partiesBeyondourownorganisation,werelyonoursuppliers’andpartners’systemsforprotectingdataandcustomerprivacy.Weassesstheirapproachthroughourinformationsecurityanddataprotectionduediligencequestionnairesand use privacy impact assessments to identifywhetheradditionalactionsarerequired.Thisincludesidentifyinghigh-riskthirdpartiessotheycanbeeffectivelymanaged.Privacy,data retention and removal clauses are includedinallrelevantthird-partycontractsinvolvingthetransferofpersonalinformation.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 39 RSA – Confident Futures Corporate Responsibility Report 2019

Running an ethical business is fundamental to how we operate. We’re committed to preventing bribery and corruption, tackling fraud, responding to human rights risks and being transparent about the tax we pay.

Business integrity

EveryoneatRSAcompletesrelevanttrainingmodulesthroughHorizon,ouronlinelearningmanagementsystem.In2019,welaunchedanewConductRulese-learningmoduletoensure all employees understand the new rules introducedbytheFinancialConductAuthorityandthePrudentialRegulationAuthority.

In2019,ourGroupRiskteamledanoverhaulofGroupbusinesscontrolpolicies.Weupdatedmostofourpoliciesusingnewtemplatesand provided clearer controls to ensure their requirementsaremonitoredandreviewed.UltimateresponsibilityforcomplyingwithlocallegalandregulatoryrequirementsrestswiththeExecutiveteamsineachregion.

Anti-bribery and corruptionBribery and corruption are not tolerated anywhereinourbusiness.Ourpositionisclear:weneverofferorreceivebribesorcorruptpayments.OurrobustAnti-Briberyand Corruption Policy outlines the controls inplacetomitigatetherisksandtocomplywithapplicableregulation.Ourapproachissupported by additional policies that help us topreventwrongdoing,includingthefollowing:

• Conflicts of Interest, Gifts and Hospitality Policy:Coversactualorpotentialconflictsofinterest,thestandardsweexpectandproceduresforrecordingandescalation

• Broker Remuneration Policy:Outlinesexpectations that commission and other payments are commensurate withtheservicesprovidedandsubject to appropriate approvals

• Third Party Contracts Policy: Provides guidanceonengagingwithkeysuppliers and third parties to ensure that bribery orcorruptionarenotusedtogainan unfairadvantage

• Whistleblowing Policy: Covers safe and anonymous ways to report malpractice without fear of repercussions

Employeesinhigher-riskrolesreceiveadditionaltrainingandaresubjecttovettingforfinancialprobityandcriminality.Inaddition,allregionalbusinessesandfunctionscompleteananti-briberyandcorruptionriskassessmentannually.

Business conductOur policies and processes are critical to upholdinghighstandardsacrossourbusiness.They set out our expectations of employees on topicsincludinghandlingcustomerinformation(see‘Customerprivacyanddatasecurity’onpages 38 and 39),conflictsofinterestand anti-moneylaundering.

• Conducted gap analyses to ensure effectivelocalimplementation of Group policies

• Trained all UK-based employees on Conduct Rules

• Reviewed and updated our Group-wideHumanRightsPolicy

Our actions in 2019

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 40 RSA – Confident Futures Corporate Responsibility Report 2019

Supporting industry fraud initiatives Weactivelyparticipateincross-industryinitiatives,includingtheInsuranceFraudBureau(IFB),InsuranceFraudRegisterandthePoliceInsuranceFraudEnforcementDepartment,tosharedataandintelligence,andtosupportenforcementagenciestobringfraudsterstojustice.In2019,ourUKandInternationalChiefClaimsOfficerbecameChairoftheIFB,whichleadstheinsuranceindustry’scollectiveeffortsagainstinsurancefraud.

Find out more from RSA colleague Adele on her work to combat insurance fraud.

Raising concerns through Ethicspoint

Ourwhistleblowingsite,Ethicspoint,providescolleagues,contractors,suppliersand otherexternalpartnerswithasecureandconfidentialwaytoreportpotentialwrongdoing.Whenawhistleblowerraisesaconcern,thebusinesstakesmeasurestoprotecttheiridentity,maintainconfidentialityandsafeguardagainstconsequencesorrecriminations. Allpermanent,temporaryandcontractualemployees,directorsandnon-executivedirectorsarerequiredtocompleteourmandatorywhistleblowinge-learningmodule.

Whistleblowing Wehavehighethicalstandardsandclearexpectations around the behaviour of our people.However,whenthingsgowrong,it’simportant that our employees are aware of our WhistleblowingPolicyandknowhowtoraisea concern so that corrective action can be takenquickly.

Preventing fraudEveryday,weworkwithpreventionagencies,the police and other insurers to detect and preventfraud,protectingourcustomersandourbusiness.

We have specialist teams dedicated to preventing,detectingandinvestigatingapplication and claims fraud across our business.ThisincludesourCounterFraud UnitintheUK,whichcombinesfraud detectiontechnologywiththeskillsofexperiencedintelligenceanalysts,claimshandlersandinvestigators.

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 41 RSA – Confident Futures Corporate Responsibility Report 2019

Human rights and modern slavery Wearecommittedtorespectingandprotectinginternationallyacceptedhumanrights,andtofairandequaltreatmentforall,asoutlinedinourGroup-wideHumanRightsPolicy.

During2019,werefreshedthepolicytoensureappropriateactionsandduediligenceprocesses are in place to prevent any breachesofourstandards.Thesefocusonunderwriting,procurementandhumanresources,aswellasmakingemployeesawareoftheprinciplesandmonitoringtheeffectivenessofourresponses.Ourprocurementteamsundertookmodernslaverytraining,andweareexploringopportunitiestoextendthistrainingtoourregionaloperations.

In accordance with the UKModernSlaveryAct2015,wepublishanannual modern slavery statement detailingthestepstakentocheckthatslaveryandhumantraffickingarenottakingplaceinourbusinessoroursupplychains.

Business continuity planning OurBusinessContinuityManagementprogrammeproactivelyimprovesour resilienceandabilitytorespondtodisruption.Business continuity plans are in place across ouroffices,andahotlineforreporting incidentsisalwaysavailable.Weregularlyundertaketrainingtoensurepreparedness,includingcrisiscommunicationsandincidentresponseexercises.

Tax transparency

Asanemployerandtaxpayer,wesupporttheeconomiesofthecountrieswhereweoperateandmanageourtaxaffairsresponsibly.OurAnnual Tax Transparency Report sets out how wemanagetax,includinggovernance,planning,riskmanagementandtotaltaxcontribution.

Next steps • Update our ‘Guide to business

conduct’andrelaunchittocolleaguesacross the business

• Continue the ongoing implementation, review and validation of our policies and controls so that we maintain the highestethicalstandards

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 42 RSA – Confident Futures Corporate Responsibility Report 2019

We have clear structures and controls in place to ensure our corporate responsibility (CR) strategy, Confident Futures, is embedded in our operations and decision making. Our governance model is underpinned by robust policies, standards and management systems.

Governance

Our corporate responsibility governance model

Our CR governance structureOur Group CR Committee oversees the implementationofConfidentFutures,includingtheresponsibilityforsettingtargets,actionplansandtrackingourimpact,andensuresappropriategovernanceandoversightofCRacrossourregions.Thecommitteeismadeupof senior representatives from each of our core markets,aswellassubjectmatterexpertstoprovidesupportonpriorityareas.

ThefollowingreportregularlytotheGroup CRCommittee:

• The ESG Committee,whichfocusesonESGissueswithininvestmentandunderwriting,aswellasmonitoringtheimplementationofourEnvironmentalPolicyandsettingtargets

• TheGroup-wideSmarter Tomorrow Working Group,whichprovidesstrategicfocustohowwebuildriskeducationandbehaviourchangeintoourproducts,partnershipsandcampaigns

The Group CR Committee is supported by the GroupCRteamandlocalCRleads,whoworkwithcolleaguestomonitoractionplansandmeasureprogress.

Our supporting policiesOurgovernancestructureisunderpinnedbypoliciescoveringenvironment,humanrights,communityinvestment,anti-briberyandcorruption,conflictsofinterest,whistleblowing,customer,third-partycontractsandemploymentpractices.Thesearereviewedannuallyandsettheframeworkforouroperations.

Ourpolicies,whichapplytoalloperatingcountriesandsubsidiaries,helpustomanageouroperational,regulatoryandreputationalrisks.Eachpolicyhasregionalownerswhoensure local implementation across our business,andemployeesarerequiredtocompleteannualtrainingmodulestoensuretheyareawareoftheirresponsibilities.

Our environment, human rights and community investment policies can be found online.

RSA Group Board

Group CR Committee Chair:ScottEgan,CEO,UK&International

Group CR team and local CR leads

ESG Committee Chair:WilliamMcDonnell, GroupChiefRiskOfficer

Smarter Tomorrow Working Group Chair:KennyLeitch,

DirectorofProductandPricing

Introduction Shapingasmartertomorrow Buildingstrongerrelationships Managingtheeverydaywell Governance 43 RSA – Confident Futures Corporate Responsibility Report 2019

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