Climate and Insurance.org | takefive with Lindene Patton

Lindene Patton is the Climate Product Officer for Zurich Financial Services Group, a role she assumed on March 1, 2008. Previously, she served as Senior Vice President and Counsel at Zurich Commercial Markets, part of Zurich North America.

In her new position, Ms. Patton is responsible for coordinating the product development and proposition management efforts related to the Group's response to climate change. She is located in Washington D.C.

Ms. Patton joined Zurich in 1996 as director of Risk Management at Zurich's Environmental Business Unit. Before that she worked at Advanced Risk Management Services at Willis, and was Associate General Counsel at EMCON, a company specialized in environmental engineering and landfill design.

She holds a bachelor's degree in biochemistry from the University of California at Davis, a master’s degree in public health from the University of California at Berkeley and a Juris Doctor (JD) degree from Santa Clara University School of Law.

Takefive:
In January, Zurich Financial Services Group announced that it was launching a global Climate Initiative. Can you briefly explain some of the reasons behind this decision and what does your organization ultimately hope to accomplish with the initiative?

Lindene Patton:
Over the past several years, Zurich has focused itself on establishing operating platforms, talent management programs, financial processes and strategic objectives to ensure we maintain a sustainable path for profitable growth and operational transformation.

Zurich is now systematically looking at areas where we can most effectively apply our global capabilities, particularly as they relate to areas of risk that are important to our diverse customer segments around the world.

At the 2007 World Economic Forum in Davos, Switzerland, the issue of climate change surfaced as a leading topic of discussion. At that point, in time, Zurich committed itself to developing a concrete plan to address climate change in a responsible, meaningful and sustainable manner -- the result being Zurich's Global Climate Change Initiative. We are confident that our approach and activities will position Zurich as a market leader in this area.

Climate risks, such as potential for lawsuits, regulations and/or legislation are an emerging area of exposure for our customers across the globe. Risk management is what Zurich specializes in and successfully delivers for its customers. The key to success is having a deep knowledge of what risks threaten which segments of society how, and to applying that insight through the development of products and services that enable our customers to adapt to those risks and continue operating productively. The climate change challenge is precisely the type of situation in which our skills sets will assist our stakeholders in adaptation.

Zurich aspires to be the leader in the development and delivery of market based climate solutions.

Takefive:
One element of the Climate Initiative is to create an internal Climate Office. Can you explain what your organization’s plans are for this Office?

Lindene Patton:
Zurich's internal Climate Office is charged with driving an understanding of climate related risks across all business segments and divisions. Reporting directly to Zurich’s Global Chief Underwriting Officer, Mike Kerner, the Climate Office is fully embedded in Zurich’s underwriting infrastructure, demonstrating Zurich’s market-focused climate change approach.

Key Elements of Zurich's Internal Climate Office:

Since the establishment of the internal Climate Office, Lindene Patton has been appointed Chief Climate Product Officer.

Takefive:
How does Zurich plan to take its Global Climate Initiative out of the realm of seeming as if it's more public relations than anything else?

Lindene Patton:
Zurich’s Climate Initiative is not a PR stunt. It's directly embedded in the business and reports to the Global Chief Underwriter Officer. Zurich has already been exploring such options in the past and e.g. pioneered discounted premiums on hybrid and alternative fuel vehicles in North America as far back as in 2005. Similar offers exist in Germany and Switzerland.

Recently or soon to be launched products include:

Takefive:
Another of your initiatives is to form a Climate Change Advisory Council. Can you explain how this Council will work, and also tells us the role that former British Prime Minister Tony Blair is going to play in this process?

Lindene Patton:
Zurich's Climate Change Advisory Council (CCAC) consists of both internal functional leaders and external advisors. The CCAC reports to Zurich’s Group Management on strategic and operational issues associated with climate change. Advice will be rendered at both formal meetings and on an informal dialogue basis. In January 2008, Zurich announced that the first two external members of the CCAC: former US Congressman Sherwood Boehlert and Ernst Ulrich von Weizsäcker, Dean of Donald Bren School of Environmental Science & Management at the University of California, Santa Barbara.

In addition, former UK Prime Minister Tony Blair serves as a general advisor to Zurich on a variety of matters, including providing insight on issues related to climate change.

Takefive:
The final element of the Climate Initiative is the development of an applied research program. Can you tell us how Zurich envisions this program working and where are you at the moment in terms of launching the program?

Lindene Patton:
The Zurich applied research program is in its first quarter of operation. Essentially the program works to partner Zurich with organizations and institutions to examine the critical economic, finance and policy issues associated with climate change. The first such partnership is with Dean von Weizsäcker’s Donald Bren School of Environmental Science & Management (Bren School) at the University of California, Santa Barbara. Through this particular partnership, Zurich has funded a Distinguished Visitors program to attract scholars and global thought-leaders to focus on climate changes issues, strategies and solutions.

The Bren School has developed its list of Distinguished Visitors and will soon be in the process of defining arrangements for seminars series beginning in fall 2008.

Zurich is in active discussions with the Bren School to address research activities in water management and energy related issues. Specific areas of discussion surround unique impacts of hydroelectric power and specialized options for water scarcity management. Individual discussions related to other climate related risk issues and research options have been wide-ranging and collaborative in nature and we expect additional activities, both in the short- and long-term, to emerge and develop.

As part of this partnership, the Bren School will assess Zurich’s own carbon footprint and develop a consistent approach as to how Zurich can actively manage its carbon emissions in a meaningful and sustainable manner. Significant emphasis is being placed upon the development of a strategic protocol and approach for evaluating the carbon footprint of a services based company as part of the project. The school has assigned a team to the carbon footprint project and representatives are actively meeting met and exchanging information. Zurich expects that the work done under this project will not only help Zurich determine how to best approach carbon footprint management, but also it can be used by other service providers and stakeholders in considering their carbon footprint management needs and options.