Environment

RLI’s mission is to provide industry-leading specialty risk management solutions that are convenient, tailored and fill unmet customer needs. Our business involves providing customers with insurance coverage to protect them from the impact of natural catastrophes and help them recover when the unexpected occurs.

We are committed to continuing to protect our customers from climate-related risks while also doing our part to support the global transition to more sustainable energy sources over time.

Risk Management

RLI manages exposure to weather-related catastrophe events as one component of its diversified portfolio of insurance risks. Through its risk management program, the Company has developed a comprehensive framework to manage and mitigate climate-related risks arising from weather-related catastrophes through risk selection, aggregation management, reinsurance and pricing.

More information on RLI’s framework for managing and mitigating climate-related risks are available in the 2023 Task Force on Climate-Related Financial Disclosures (TCFD) report.

Governance

RLI believes that good corporate governance plays a crucial role in achieving success. Applying thoughtful risk management in all areas of our business supports the long-term resiliency of our Company and ensures we are always able to make good on our commitments to policyholders.

The RLI Corp. Board of Directors provides oversight for climate-related risks and opportunities through several of its Board committees. Senior management is also responsible for identifying, assessing and managing all existing and emerging risks.

Management oversight of climate-related risks is provided primarily by the Company’s enterprise risk management program through the Risk Committee, which is chaired by the CEO and comprised of members of senior executive management. Through our risk management program, RLI has developed a comprehensive framework to manage and mitigate climate-related risks.

Environmental Policy

As an active member of the American Property Casualty Insurers Association (APCIA), RLI subscribes to and supports the Environmental Core Principles that APCIA has adopted to advance industry efforts to reduce and manage climate risk.

Investing in Renewable Energy

In February 2020, RLI’s 1.8-megawatt solar field on our corporate headquarters campus in Peoria, Illinois became operational. Located on six and a half acres, the 4,752-panel solar field, representing an investment of $5 million, is capable of producing annual electrical power equal to or exceeding our annual electrical needs for all three of our office buildings in Peoria, which accommodate more than 40 percent of our workforce.

In 2022, the Company’s solar field in Peoria, Illinois produced 1,499,000 kilowatt hours (“kWh”) of electricity, compared to electrical use of 973,000 kWh for the Company’s Peoria campus during the year. The Company purchased 69,500 kWh of electricity for times when the solar field was not operational, returning a total of 595,500 kWh to the grid, for a net of 526,000 kWh returned to the electrical grid.

RLI participates in the Illinois Power Agency’s Adjustable Block Program, established by the Future Energy Jobs Act, to support the development of new photovoltaic distributed generation and community solar projects in Illinois.

Environmental Stewardship

RLI has a long history of environmental stewardship through the recycling of paper, cardboard, metals, plastics, light bulbs, batteries and other waste. We also recycle or donate excess furniture and office equipment to community organizations such as United Way and its agency partners. 

Over the past ten years, RLI has made capital investments to improve the sustainability of our office buildings and reduce our carbon-based energy consumption. We’ve incorporated more recycled and sustainable materials into our offices and are reducing our energy consumption by utilizing environmental system scheduling; LED and motion-based lighting controls; and energy-efficient cooling systems and boilers. Significant investments have also been made to enhance building and work environment quality and expand exterior green space to reduce water runoff.

RLI’s investment in corporate campus building improvements has resulted in a 253% improvement in our Energy Star® Score, as established by the United States Environmental Protection Agency. More than 86% of RLI’s corporate and branch office buildings are Energy Star® rated or LEED certified.