TT Club issues statement on ESG framework

ESG Statement

TT Club is the leading provider of insurance to the global container transport sector. The Club’s overarching purpose is to work to make the international transport industry safer, more secure and, as a result, more sustainable. Founded in 1968 as a true mutual by the community it serves, and operating a “not for profit” business model, the Club’s role is to provide an all-encompassing level of indemnity cover to meet the requirements of quality container lines, ports, terminals and logistics operators. This cover is underpinned by expert service to ensure claims made against Club Members are handled and resolved in a fair and effective manner. TT Club Members are able to settle claims in the knowledge and confidence that the Club will indemnify them to give them the business certainty they require. As a core part of its service the Club actively assists operators to improve their risk profiles with the aim of furthering the Club’s purpose, advancing the wider Membership and industry by sharing the lessons learned by individual Members.


In respect of the impact of environmental issues and as an insurer regulated in many jurisdictions, the Club meets the requirements of regulators in assessing the impact of climate change on the Club’s underwriting and investment portfolios. The Club currently reports on its approach to ESG across the subject areas using as a guide the Climate Change Risk Forum (CFRF), and has the aim of enhancing its reporting practices in line with the Task Force on Climate Related Financial Disclosures (TCFD).

In relation to frameworks aimed at helping in the push to net zero the Club is working towards signatory status on the UN Principles for Sustainable Insurance (UN PSI) which requires the Club to commit to the following actions:

  1. We will embed in our decision-making environmental, social and governance considerations relevant to our insurance business
  2. We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions
  3. We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues
  4. We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles

The Club will achieve UN PSI signatory status and deliver its first associated disclosures during 2022.

Loss prevention, or risk management as it is also known, is at the heart of the Club’s mission. Expertise in this area has been core part of the Club’s service since the Club’s inception, undertaking initiatives of many kinds that make the industry safer, more secure, and more sustainable. These include giving support especially to smaller operators across the industry in successfully executing a pathway to net zero emissions.

The Board has required that its investment managers sign up to the UN’s Six Principles for Responsible Investment, embed ESG research in their investment processes and report regularly on the ESG profile of the investments. Within the Investment Mandate, it has set minimum ESG ratings for its corporate bond and equity fund holdings, as assessed by independent agencies such as MSCI and S&P.



TT Club and its manager, Thomas Miller, have as a core principle ensuring fairness, engagement, diversity and inclusion in employment. To this end Thomas Miller ensures its recruitment and employment practices are open, fair and inclusive, and designed to encourage opportunity for those currently underrepresented in the transport and insurance sectors.

Loss prevention

As described above, the Club’s Loss prevention services include initiatives of many kinds that make the industry safer, more secure, and more sustainable. These efforts include encouraging and championing innovation and supporting education and training in the transport and logistics industry. The latter area, in particular, will seek to strengthen and broaden the base of skilled workers in the industry in line with diversity and inclusion objectives.


Through its deep knowledge of the risks faced by operators in this sector and as a result of its governance by representatives from the industry, the Club seeks to adapt its cover to ensure it is providing industry leading comprehensive levels so that harm caused as a fortuitous consequence of their activities is compensated.

As a result of the mutualisation of risk the Club is able to provide a level and standard of cover to operators in the industry irrespective of their size. The Club actively looks to extend areas of cover as the risk profile of the industry changes. Annual changes are considered to ensure cover meets the needs of the membership in providing comprehensive mitigation to Members’ risk profiles, now and as they evolve. Cover is also reviewed from time to time to identify instances where it should be extended to protect the interests of a wider stakeholder group (including the public at large, and the environment), or restricted because it indemnifies Members for activity contrary to the interests of society.

An important element of the Club’s model is the power vested in the Club Board to make discretionary indemnity payments to Members when a loss is incurred in the course of business operations that falls outside the scope of the Club’s cover. This discretion is a powerful tool that enables consideration of risks that arise beyond the contemplation of the cover by the Board, being a peer group of industry operators.


The Club maintains claims resources in many locations around the world to assist Members in handling the problems and disputes they face and claims they make. The long-established approach adopted is for these resources to be “on the side of the membership”, to work in partnership with Members to assist them operationally. The instruction from the Board and the culture of those serving Club Members is to interpret cover broadly in the Members’ favour.


The mutual model approach whereby Members only wished to co-insure with peers that operated to the same quality standards remains the headline guide to Membership. The assessment criteria for new business ensures only quality, responsible operators are granted membership of the Club. The Club’s underwriters engage with Members and their brokers to ensure Members have the appropriate scope and level of cover to meet their needs and to ensure the interests of a wider stakeholder group are protected.



The Club is owned by its Members, and governed by their representatives. This, together with the Club’s high level financial aim of balancing premium income from Members with claims payments indemnified to them, ensures that when the extent of cover is set it is done so first and foremost to ensure Members have the right cover to protect their business, without thought as to the potential profitability of a head of cover.

The Club is governed in an open and transparent manner. The Board of TT Bermuda, the holding company Board, is constituted of representatives of the Membership elected from and by the Membership. Appointments to the Board are recommended to the Membership for election at General Meeting and are done so on the basis that the Board should mirror the underlying Membership in terms of representation across the three international regions and the Club’s main operator segments. This ensures a wide level of national diversity on the Board. The Board has instructed the Nominations Committee to seek to increase the level of gender and ethnic diversity.

ESG measurement

The Club measures its approach to ESG concerns in line with the Sustainability Accounting Standards Board (SASB), and will utilise the SASB successor International Sustainability Standards Board (ISSB) in advancing its measurement, tracking and reporting practices in line with best practice and industry standards.


The Club pays the right level of tax in all jurisdictions in which it operates. The Board’s direction is to abide not just by the letter of the relevant tax laws, but also by their spirit to ensure the Club is making the right level of financial contributions to the communities of which it is a part. This approach is open and transparent and verified by expert third parties, notably the Club’s auditors.

The Board
June 2022

Staff Author

TT Club