Aspen target two-thirds ESG premium in credit and political risks portfolio

Bermuda headquartered Aspen is to incorporate environmental, social and governance (ESG) considerations in its credit and political risk (CPR) portfolio.

Under its “Project Leaf” ESG integration strategy, it aims to ensure that by 2026 over two-thirds of its CPR premium originates from transactions with a favourable ESG classification: determined by exposure with a positive ESG risk factor, such as project finance for solar or wind assets.

The project, launched in June 2020, is led by Aspen’s head of CRP Dan Osman, working alongside underwriters and credit analysts across London, Singapore and Bermuda. The team began by investigating ESG risk exposures across its CPR portfolio before engaging with clients to understand their ESG objectives.

Aspen’s CPR team will follow a developed framework for assessing and classifying underwriting transactions, allowing them to report progress toward the goal. A working group, led by Osman, will also be launching a range of initiatives, including a school mentoring scheme, a series of charitable partnerships, and an internal programme to reduce Aspen’s own carbon footprint.

“Project Leaf has set out to create a transparent roadmap for Aspen’s CPR portfolio that is closely aligned with the wider group’s corporate objectives and ESG strategy,” said Osman. “Several objectives are already locked in for delivery in the next five years, and the team looks forward to reporting on its progress in line with the Group’s shift to make ESG integration a top-down strategic priority.”