DEFINITY FINANCIAL CORPORATION ANNOUNCES COMMITMENT TO ACHIEVE NET-ZERO OPERATIONS AND INVESTMENTS BY 2040

WATERLOO, ON, March 15, 2022 /CNW/ - Today, Definity Financial Corporation ("Definity") (TSX: DFY) is announcing its commitment to achieve net-zero emissions for both its operations and investments by 2040 or sooner. The multi-channel property & casualty insurer is pledging to support the transition to a net-zero future. To meet its commitment, Definity has established interim targets to chart its progress against these objectives.

Definity aims to build a better world by helping clients and communities adapt and thrive. A key element of this purpose is acknowledging the company's responsibility and defining its role in addressing the climate crisis. The targets announced today are a crucial part of Definity's enterprise climate change commitment and its strategy which sets out the following priorities:

• Offering insurance products and services that help reduce the impacts of climate change on our clients and communities
• Identifying and managing climate-related risks across the enterprise
• Reducing the direct climate impacts of our operations
• Managing climate-related risks and opportunities for our investments
• Advocating for a just and resilient net-zero emissions future
• Disclosing our progress in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

"We know the real consequences of climate change for Canadians," said Rowan Saunders, President and CEO of Definity. "In our business as a leading property and casualty insurer, we come face-to-face with its increasingly frequent and severe impacts. We have a responsibility to address our own contributions to climate change so that we can continue to serve Canadians with integrity and accountability."

Definity has established the following targets:

• Net-zero emissions from operations by 2040 or sooner
• Inclusive of all Scope 1 and Scope 2 emissions
• Definity will take an active approach to reducing the carbon intensity of its day-to-day business, including natural gas and electricity consumption in buildings, fleet vehicles and more
• Interim targets: -30% by 2025 and -50% by 2030 relative to a 2019 baseline
• Net-zero emissions from investments by 2040 or sooner
• Inclusive of emissions associated with listed equities and corporate bonds
• Future guidance for measuring and reporting financed emissions of these and other relevant asset classes is intended to be adopted as appropriate
• Definity will take an investment approach to reduce the greenhouse gas intensity of the portfolio while seeking to maximize risk-adjusted returns
• Interim targets: -30% by 2025 and -65% by 2030 on an intensity basis, relative to a 2020 baseline

Definity has committed to the Science Based Targets initiative (SBTi) and will submit its climate targets to SBTi to be validated in terms of the levels that the latest climate science deems necessary to limit warming to 1.5°C above pre-Industrial levels.

Definity encourages other organizations to develop ambitious strategies aligned to the goals of the Paris Agreement, to halve their emissions by 2030 and achieve net-zero emissions by 2050. Definity will continue to develop its underwriting strategy to support these objectives and will advocate and partner with counterparties – particularly in emissions intensive sectors – to achieve these shared goals.

Note: Net-zero refers to reducing human-caused greenhouse gas emissions as close to zero as possible, with any remaining emissions to be matched with an equivalent amount of emissions removed from the atmosphere using technological or nature-based solutions.

ABOUT DEFINITY FINANCIAL CORPORATION
Definity Financial Corporation (TSX: DFY) is a multi-channel insurance company, offering personal and commercial insurance through Economical Insurance, Sonnet Insurance Company, Petline Insurance Company, and Family Insurance Solutions Inc.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada, which reflects Definity's current expectations regarding future events, including statements concerning the approaches to be taken by Definity in relation to operations and investments with a view to achieving net-zero emissions and the timing thereof; Definity's interim targets; Definity's aims to build a better world by helping clients and communities adapt and thrive; priorities to be pursued further to its enterprise climate change strategy; its intention to adopt future guidance for measuring and reporting financed emissions, as appropriate; submitting its climate targets to SBTi; and its anticipated path for progression towards achieving its commitment to achieve net-zero emissions for its operations and investments, as described in this news release. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Definity's control. Such risks and uncertainties include: Definity's actual fulfilment of its commitment to achieve net-zero emissions for both its operations and investments by 2040 or sooner, as well as Definity meeting its related interim targets; Definity's ability to successfully implement the approaches to be taken in relation to operations and investments with a view to achieving net-zero emissions; Definity's ability to pursue the priorities of its enterprise climate change strategy, as well as its ability to achieve the objectives of that strategy; the suitability for Definity and its business of future guidance for measuring and reporting financed emissions; and other risks and uncertainties impacting Definity's business, as described in greater detail in "11 – Risk Management and Corporate Governance" of Definity's Q4-2021 Management's Discussion and Analysis dated February 10, 2022 as filed on SEDAR. Actual results could differ materially from those projected herein. Definity does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

SOURCE Definity Financial Corporation

Media inquiries: Sarah Attwells, Director, Corporate Affairs, (C) 416-986-9360, [email protected], Investor inquiries: Dennis Westfall, Head, Investor Relations, (C) 416-435-5568, [email protected]