Beazley PLC

#### Delivering the plan

###### Embedding governance (2/2)

Responsibility for ensuring we deliver against our Transition Plan objectives are shared across senior leadership. [...] #### Delivering the plan

###### Ensuring risk management

We have robust governance and risk management processes in place to support the delivery of our objectives.

###### Risk management and oversight

The second-line Risk Management Framework (RMF) establishes our approach of overseeing and challenging the Group's key risk exposures, which includes transition risk as a sub-set of and sustainability and ESG-related risk. It outlines the various processes that enable timely identification, measurement, mitigation and monitoring of the respective risks.

The core components of the framework include risk governance and reporting; risk appetite and KRI setting and monitoring; various risk assessment methods (including detailed risk assessments, risk opinions and deep-dives); stress and scenario analysis; monitoring of first line internal controls; emerging risk assessments; and incident management. Each of these components are proportionately applied to ESG risk, and they continue to evolve and mature alongside the wider ESG and transition risk framework. [...] #### Delivering the plan

###### Engaging with stakeholders

To support delivery of our Transition Plan, we will continue to perform wide-ranging stakeholder engagement.

The activities we regularly undertake are summarised below.

###### Investments

We annually update our Responsible Investment policy and require all investment managers to align with its ESG standards. As proactive shareholders, we leverage our influence to foster responsible corporate conduct, focusing on ESG practices.

Although equity investments form a minor segment of our portfolio, we mandate our external managers to actively exercise our voting rights to drive positive ESG-centric changes.

###### Industry Forums

As active members of key sustainability initiatives like UN PSI, UN PRI, Climatewise, the Sustainable Market's Initiative, and FIT, we actively harness cross-sector, collaborative platforms to leveraging our expertise for the net zero transition.

This collaboration informs our product development and business strategies, ensuring we remain at the forefront of sustainable action. We will persist in these endeavours, aiming for impactful collective progress on transition-related matters.

The ultimate responsibility for the delivery of responsible business matters lies with the plc Board and executive committee. To support them in their decision-making we created the Responsible Business Steering Group, which met for the first time in August 2021. This group was created to drive the delivery of the responsible business strategy forward, guarantee all aspects of responsible business are joined up and ensure appropriate governance is in place to oversee key regulatory returns such as the Bank of England's Climate Biannual Exploratory Scenario (CBES) Stress Test. [...] The Responsible Business Steering Group (RBSG), is chaired by the Chief Executive Officer and attended by the CRO and CUO, as well as key representatives from across the business. On a quarterly basis, directors from across the Beazley Boards including Non-Executive Directors of Beazley plc are also in attendance. [...] The RBSG meets on a monthly basis to receive updates from the technical leads on progress against the objectives within the strategy. The RBSG, has therefore, complete oversight over all responsible business matters, and acts as a forum for discussion and debate on ESG issues. The RBSG provides recommendations for courses of action, to the underwriting committee or executive committee.

Beazley's Responsible Business Steering Group is responsible for challenging the progress and development of the strategy and providing support to the business as it addresses ESG issues and climate related risk. [...] The RBSG oversees the delivery of responsible business across Beazley, monitoring progress against the objectives set out in the responsible business strategy. It provides a forum for strategic matters relating to ESG and climate-related issues to be discussed, and knowledge to be shared. In 2022, agenda items have included: progress updates from the climate risk working group and ESG in underwriting project; reviewing the application to join the NZIA and SMI Terra Carta; reviewing progress against key climate-related KPIs e.g. GHG emissions; and the finalisation of the annual responsible business strategy refresh. The RBSG is chaired by the CEO, and attended by the Chief Risk Officer, Chief Underwriting Officer, Chief Operating Officer, Group Head of Strategy, Head of Responsible Business, Head of Financial Climate Risk, and investment manager responsible for ESG matters. On a quarterly basis, Non-Executive Directors from across the Beazley plc Board and key regulated subsidiaries are also in attendance. This provides a further link between management and the plc Board on climate-related matters.