Admiral : Our latest Sustainability Report

Sustainability Report 2023

BETTER

TOGETHER

Today and tomorrow

Introduction

Our purpose

Admiral Group's purpose is to

'Help more people to look after their future, always striving for better, together'. Our purpose framework demonstrates how our purpose is embedded across the business. To achieve our aspiration and help more people, we strive for inclusivity - and this applies to our approach to sustainability as well.

Our goal is to help everyone to understand the role they can play and the changes - no matter how small - that they can make. This will help protect not only their financial future but also the future of their communities. This also makes our business more resilient to sustainability risks and puts us in a position to leverage commercial opportunities.

We look to achieve this collective action through partnerships and innovation. With a challenging journey ahead we will focus our efforts on supporting our customers and colleagues to deliver meaningful change.

Admiral Group plc Sustainability Report 2023

"Admiral has the reputation

of being a company that

cares deeply about its people,

underpinned by a strong

sense of purpose and a unique

and inspiring approach to

leadership. Our goal is to build on these foundations to inspire our people, our customers, and the communities that we serve to embrace sustainability in a way that is meaningful and impactful for them."

Michelle Leavesley

Group Head of Sustainability

Reporting suite

For more
information on
Admiral Group,
see the 2023
Annual Report.	Celebrating 30 years
PDF Download	BETTER
	TOGETHER

For more information on our Diversity, equity and inclusion commitments, see our latest Diversity Report.

PDF Download

For more information on our Modern Slavery commitments, see our latest MS statement.

PDF Download

For more on our commitments to equal Gender Pay, see our latest Gender Pay Gap report.

PDF Download

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Contents

Introduction	1
0.1	CEO Statement	2
0.2	Our approach to sustainability	3
0.3	Sustainability governance	4-5

0.4 Our Contribution to the UN Sustainable

	Development Goals	6-9
0.5	Materiality Assessment	10
1.0	Our Customers	11
1.1	Sustainable and quality products	12-13
1.2	Transparent claims outcomes	14
1.3	Vulnerable customers	14
1.4	Implementation of Consumer Duty	15
2.0	Our People	16
2.1	Diversity, equity and inclusion	17-18
2.2	Learning and Development	19
3.0	Our Society	20
3.1	Our Community investment strategy	21
3.2	Impact Hours	22
3.3	Partnerships	23-24
3.4	Global Emergency Fund	25
3.5	Environmental engagement	25
3.6	Colleague Lead Donations	26
4.0	Our Business	27
4.1	Our Net Zero Ambition	28
4.2	Greenhouse gases emissions from operations	29-30
4.3	Climate risk management	31
4.4	Responsible investments	32
4.5	Sustainable procurement	32
5.0	Sustainability ratings and rankings	33
6.0	Admiral's 2022 SASB Disclosure	34-36

Introduction

0.1 CEO statement

Admiral Group's purpose is to 'Help more people to look after their future, always striving for better, together'. Our purpose is at the heart of our approach to sustainability as it represents what we have always strived to achieve.

Since Admiral began in 1993, we have always strived to do the right thing for all of our stakeholders, with a focus on the long term rather than chasing short term gains. This was

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SUSTAINABILITY Striving

for better

INSPIRING, together.

INCLUSIVE AND

INTENTIONAL

the case well before "sustainability" became a strong and explicit "theme" for companies like Admiral. We have historically prioritised long term collaborative partnerships as well as long term incentive plans for our staff and our management, and focused on supporting customers and local communities. I am proud that sustainability has always been a key focus for our business and continues to be an integral part of our culture. We remained attentive to our purpose in 2023, and will continue to do so in 2024 and beyond.

Nonetheless, there is no place for complacency, and we are aware that so much more can be done. We know sustainability challenges face us all, and they are a risk not only to Admiral Group, but the entire planet. Going forward we are making sustainability itself a more explicit part of our Group strategy and an area of focus that is inspiring, inclusive and intentional. Financial services plays a strong role in key sustainability issues, such as financial inclusion, mobility, and climate resilience. We strive for Admiral Group to be a part of the solution.

Admiral Group plc Sustainability Report 2023

In 2023, we welcomed our first Group Head of Sustainability, Michelle Leavesley, who together with her team is working to enhance our sustainability approach. The team will help steer us towards our targets, further embed sustainability across all our global businesses, help us share more on the things we do, identify opportunities for us to improve and have an even greater impact in the future.

We donated to a wide range of charities and organisations such a Generation and Seeds throughout 2023 and our efforts towards global issues will continue through 2024 and beyond. As well as our philanthropic giving, our incredible people at Admiral Group volunteered over 14,000 hours during 2023 using their impact hours; volunteering with charities and causes within their communities across the world.

We continue our ongoing actions to reduce the carbon intensity of our operations. In 2023, we focused on verifying the Group's scope 1 and 2 greenhouse gas emissions and have applied to have our Science Based Targets (SBTs) approved in 2024 whilst further developing our Net Zero

transition plan, with the input of our entire business helping us to make our targets a reality. Admiral is contributing to green mobility, as one of the largest electric vehicle (EV) insurers in the UK, with our EV book recording double digit growth over the past year. At the same time, we are continually looking for ways to improve our ESG ratings with an AA MSCI rating, and an improvement of our CDP rating to B.

In 2023, we continued to make Admiral more inclusive, being granted 'Disability Confident Leader' status through a Government initiative, an incredible achievement for us, as well as being voted the UK's 3rd Best Workplace for Women™ 2023. In addition, we remain a great place to work globally, ranking 13th in the Great Place To Work® World's Best Workplaces™ 2023.

Milena Mondini de Focatiis

Chief Executive Officer

1. Generation are a non-profit organisation striving to transform the education system into an employment system so people can obtain access to life-changing careers.
2. Seeds (Sustainable Environment and Ecological Development Society), is an organisation with the goal of protecting the lives and livelihoods of people, by partnering with them to build their resilience to disasters and climate change impacts.

"'We have worked hard to continue to make a difference in 2023, and I am looking forward to us having even more impact for our people, our customers, and our planet in the future."

Milena Mondini de Focatiis

Group Chief Executive Officer

Introduction

0.2 Our approach to sustainability

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Being a good corporate citizen has always been at the heart of Admiral's business. Our history includes thirty years of striving to do the right thing: supporting millions of customers, providing a great place for our employees to work and thrive, philanthropic giving and colleague volunteering to support our communities, and making efforts to reduce our carbon footprint for over

a decade.

In 2023, we built upon our history to further increase the impact we make. We also began to strengthen our approach by promoting sustainability internally and helping people across our business think about sustainable topics differently, adding the pillars of inspiration, inclusion, and intention to deliver our core values even better. We use Admiral Group's purpose as our compass and are working to tackle barriers to inclusion that can make engaging with sustainability less accessible for some groups. We aim to inspire people to make the changes necessary for us all to make things better for future generations to come.

To achieve this, we have brought together our existing sustainability activities and sustainability champions under a newly appointed Group Head of Sustainability, supported by a re-focused sustainability governance structure. This approach will provide the dedicated resource, expertise and Group-wide focus needed to co-ordinate all aspects of sustainability.

The new structure supports Admiral Group's ambition to fully and consciously embed consideration of sustainability within our commercial strategy and all of our business activities. We strive to create our own authentic approach to sustainability, engaging our operations and supply chain, leveraging skills and volunteering to create more jobs in our communities, transforming our investments portfolio, and developing new products

and services to support our customers' transitioning lifestyles.

Also in 2023, we began a proposal to convert our revolving credit facility (RCF) into a sustainability-linked loan (SLL), which would require us to set ambitious sustainability objectives through Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs). These would need to be externally verified and monitored regularly to verify that we fully achieve the agreed targets - which relate to Scope 1, 2 & 3 emissions and DE&I objectives. We are hoping to get our proposal approved by the banks in 2024.

"Sustainability at Admiral has

always been a part of our culture,

it is within our DNA to do the right things for our customers, our people, our communities and the planet. We are further enhancing our commitment to creating a more sustainable future by fully aligning sustainability with our purpose framework and by embedding both throughout all we do across the organisation. This will help us better meet our aim to create a long-lasting impact, drive positive change and deliver the best possible outcomes for all our stakeholders."

Keith Davies

Admiral Group plc Sustainability Report 2023

Group Chief Risk Officer

Introduction

0.3 Sustainability governance

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Group Board: The Admiral Group Board is ultimately responsible for understanding and overseeing the Group's impact on the environment, as well as the impact of a changing climate on the Group. It is the principal governing body for sustainability- related issues and takes ownership of sustainability and climate-related topics and associated stakeholder engagement. The Board approves the Group's sustainability approach and our sustainability ambitions which can have a material impact on Admiral. Milena Mondini de Focatiis, Group CEO, is the accountable Sustainability representative for the Group and Keith Davies, Group Chief Risk Officer has designated responsibilities under the Senior Managers and Certification Regime (SMCR) in relation to understanding and managing the risks to the business created by climate change.

Board Committees: The Board has delegated authority to several permanent committees which deal with sustainability-related matters where relevant in accordance with written Terms of Reference. The principal committees of the Board - the Group Audit Committee and Group Risk Committee - both play an important role in the Group's sustainability-relateddecision-making processes. For example, the Group Risk Committee oversees the management of climate-related risk and ensures appropriate oversight is in place for both 'outside-in' risks (how the climate impacts our business) and 'inside-out' risks (how our business impacts the climate). The Group Audit Committee oversees the reporting of risk disclosures

in respect of climate change and ensures that all external reporting is complete, accurate and not misleading.

Admiral Group plc Sustainability Report 2023

Sustainability Steering Committee:

To support a more holistic and co-ordinated approach to sustainability issues, in October 2023, the Group Board approved the creation of a Sustainability Steering Committee (SSC) and five supporting Working Groups (see page 5), to replace the former Sustainability Working Group and Climate Change Committee.

The SSC provides guidance on the overall programme of sustainability-related work and ensures a joined-up approach across the entire Group. Chaired by the Executive Sponsor for sustainability, it meets quarterly and comprises the Group CEO, AECS CEO, Group Head of Sustainability, Chief Financial Officer and the Chairs of our sustainability Working Groups.

In addition, the Group Head of Sustainability provides updates to the Group Board and relevant entity Boards and Committees,

as required.

Introduction

0.3 Sustainability governance

continued

5

The sustainability Working Groups are based on the key areas of our sustainability strategy. They discuss and make decisions on how these areas impact and are impacted by all the elements of sustainability. Although the Climate Change Committee has been phased out, climate - along with other sustainability topics - is integrated into each of the Working Groups, allowing for a more holistic assessment of our sustainability approach. The Working Groups are chaired by senior management experts who lead the Group's activities in their respective areas:

• Positioning & Communications
• Customer & Product
• Operations, Investments & Procurement
• Risk, Compliance & Reporting
• People, Learning & Development

Green Team: The Green Team is an internal colleague-led group. Through the Green Team, colleagues are able to influence and engage with decisions we make on the partners supported through our Green Fund Initiative. The Green Team looks to raise awareness with employees through focussed environmental initiatives and engagement on environmental topics, such as "Climate Positive" and Green Awareness Week. The Green newsletter, which goes out quarterly to all colleagues within the Group, discusses initiatives on how we can minimise our personal and business impact of climate change. The Green Team actively supports the environment-themed events within the company in association with partners such as Stump Up for Trees and Size of Wales and supporting education and tree planting initiatives through those partners.

Admiral Group plc Sustainability Report 2023

Introduction

0.4 Our contribution to the UN sustainable development goals

6

The Sustainable Development Goals (SDGs) are a set of 17 goals developed by the United Nations (UN) which were adopted in 2015 by 173 nations, including all countries where we operate, with a deadline to achieve these goals by 2030. The SDGs serve as a framework to drive the economic, societal, and environmental change needed globally.

Each of the 17 goals are made up of specific targets which help direct efforts to end poverty and inequality, protect the planet, and ensure all people enjoy health, justice, and prosperity by 2030.

As an international financial services provider we play an important role in contributing towards the SDGs. We feel we must both contribute and report on our contributions to the SDGs, hence their inclusion within previous years' reporting.

Our business aligns directly to SDG 8 of Decent Work and Economic Growth and SDG 9 of

Industry, Innovation, and Infrastructure considering our role in enabling financial inclusion. By protecting against risks, insurance increases the capacity of individuals, households, and businesses to absorb financial

shocks and continue participation in a healthy, inclusive economy. In-line with our purpose to help more people to look after their future, we invest in our communities, which contributes directly to SDG 4 of Quality Education, SDG 10 of Reduced Inequalities and SDG 11 of Sustainable Cities and Communities. We also contribute to SDG 13 of Climate Action through Admiral Group's customers' emissions and impact upon the environment. As such, we have focused our SDG reporting on these six targets in the below table however we also contribute more widely to other SDGs.

SDG 4: Quality Education

SDG 8: Decent Work and Economic Growth

Target

4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university.

4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.

4.5: By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations.

Contribution

• We help eliminate gender disparities by supporting women in business through internal programs such as 'Get Discovered'.
• Our Emerging Talent Programme develops vocational skills and creates opportunity by encouraging internal mobility.
• Our community investment helps those with vulnerable characteristics find gainful employment. Examples include our partnerships with Women Unlimited, Code First Girls, The Princes Trust, Llamau and The Wallich. We helped 1,980 people into jobs in 2023.

Target

8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage growth of micro-, small and medium-sized enterprises, including through access to financial services.

8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead.

Contribution

• Diversification and innovation are integral to our strategy. In 2023 we further expanded outside of our UK motor insurance operations by growing our home, pet and travel insurance businesses, as well as our loans businesses.
• We supported technological upgrades and innovation in mobility as a market-leading underwriter of electric vehicles.
• We support decent job creation via our community investment, which generates gainful employment as discussed under SDG4.

Admiral Group plc Sustainability Report 2023

Introduction

0.4 Our contribution to the UN sustainable development goals

continued

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SDG 9: Industry, Innovation and Infrastructure

SDG 10: Reduce Inequalities

Target

9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well- being, with a focus on affordable and equitable access for all.

9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry's share of employment and gross domestic product, in line with national circumstances, and double its share in least developed count.

9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

Contribution

• Our motor insurance product helps make vehicle use and ownership safer and more financially accessible for more people, ultimately mobilising them to have better access to work, school, healthcare, and other essential parts of life which promote wellbeing.
• Our household insurance also helps to make housing financially accessible for more people by lowering the risk
  of home ownership.
• As a leading underwriter of electric vehicles in the UK, we support our customers as they adopt more efficient and sustainable forms of transport, lowering the barriers associated with upgrading to an EV.

Target

10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.

10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard.

10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

Contribution

• Our workplace is a safe environment for colleagues to be themselves, access what they need, and have equal opportunities across our Group. In 2023, 94% of our colleagues around the world stated that they believe Admiral Group is a diverse and inclusive employer.
• Internal programs that promote equality and a safe working environment for all include our Get Discovered Program for women in business, our strong internal social mobility processes, and our pledge to be a neurodiversity-friendly employer. For more information on these initiatives see our 2023 annual report.
• Our charity partners help those in economic need into gainful employment, as well as helping women into gainful employment in industries which are historically excluding such as construction and tech. For more information see
  'Our Society' section on page 20.

Admiral Group plc Sustainability Report 2023

Introduction

0.4 Our contribution to the UN sustainable development goals

continued

8

SDG 11: Sustainable Cities and Communities

SDG 13: Climate Action

Target

11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.

11.5: By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people

in vulnerable situations.

11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

Contribution

• As mentioned under SDG 9, our home insurance product supports access to housing through financial inclusion by lowering the risks associated with home ownership, including ever-increasing extreme weather events such as flooding and storms.
• Our UK electric vehicle insurance product mentioned under SDG 8 allows greater accessibility to more sustainable methods of transport, which helps reduce the environmental impact of transport on global climate and local air quality.
• Our Global Emergency Fund has helped communities respond to natural disasters. In February 2023, we donated £250,000 to the DEC's Turkey-Syria earthquake appeal, as well as £30,000 to help the Halifax wildfire response in May of 2023.

Target

13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

13.b: Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities.

Contribution

• Greater adaptive capacity to climate- related hazards is gained for our customers through our home insurance product lowering the risk associated with home ownership. This includes initiatives such as our Storm Hub, which educates and raises awareness of these hazards by sending weather warnings and information, so our customers are empowered to better react and take proactive measures.
• We promote resilience to climate-related hazards through our community initiatives, such as a Sustainable Land Management and tree planting project in Boré, Kenya which also employed women and local unemployed youth.

Admiral Group plc Sustainability Report 2023

Introduction

0.4 Our contribution to the UN sustainable development goals

continued

The UN Sustainable Development Goals

1. No poverty

2. Zero hunger

3. Good health

4. Quality

5. Gender equality

6. Clean water

7. Affordable and

and well-being

education

and sanitation

clean energy

8. Decent work and

9. Industry, innovation

10. Reduced

11. Sustainable

12. Responsible

13. Climate action

14. Life below

economic growth

and infrastructure

inequalities

cities and

consumption and

water

communities

production

15. Life on land	16. Peace, justice and	17. Partnerships
		strong institutions	for the goals

Admiral Group plc Sustainability Report 2023

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