Arch Capital Group, a global insurance and reinsurance company, has set target for net zero by 2030 to reduce its greenhouse gas (GHG) emissions. The Group aims to reduce its absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 42% by 2030, based on a 2020 baseline year. Additionally, the company plans to purchase carbon removal offsets to offset its remaining Scope 1 and Scope 2 emissions. In 2022, the company reported total scope 1 emissions of 1,069 mtCO2e, scope 2 (market-based) emissions of 5,383 mtCO2e, and scope 3 emissions of 61,536 mtCO2e. Arch Capital Group's 2022 total emissions increased by 41% compared to the previous year. This increase was primarily driven by a return to pre-pandemic business travel activity. However, the company's operational emissions continue to fall in both absolute and intensity terms, despite its growth in headcount.

Arch Capital Group has analyzed its Scope 1 and Scope 2 emissions to identify areas for improvement. Over half of the company's carbon emissions come from electricity powering its worldwide offices. The company has already taken steps to improve operational efficiencies and reduce emissions. To progress towards its emissions reduction targets, Arch Capital Group purchased 6,623 Renewable Energy Credits (RECs) from eligible renewable energy projects in the US and the Philippines. This effectively reduced the company's Scope 2 market-based emissions by 2,152 metric tons. Arch Capital Group expects that sourcing renewable energy will remain a key component of its decarbonization strategy in the coming years.

Overall, Arch Capital Group is committed to measuring and reducing its carbon footprint. The company is focused on improving operational efficiency, investing in renewable energy, and addressing climate-related risks. By implementing energy-efficient strategies and responsible investments, Arch Capital Group aims to achieve its net-zero targets and contribute to the transition to a low-carbon economy.

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