The term ESG was first used in 2005 in a landmark study initiated by former UN Secretary General Kofi Annan entitled ‘Who Cares Wins’. A subsequent report concluded that embedding environmental, social and governance factors in capital markets made good business sense, improved market sustainability and lead to better outcomes for societies. Today, integration of ESG factors into investment processes and decision-making underpins responsible investing.
For insurers, a key commercial driver can be seen in ESG being incorporated into the ratings of AM Best and other major insurance company rating agencies. There is also an increasing awareness that ESG information can improve investment portfolio performance, boost company reputation and improve risk management processes.
In order to mitigate risk and embrace the opportunities presented by ESG, insurers will need to consider new and dynamic approaches to risk modelling, investments, and business operations. An insurer’s ESG policy will be inextricably linked with digital transformation.
This content focuses on what ESG means for the insurance industry and how insurers can improve ESG performance throughout the supply chain.
• ESG reporting.
• ESG strategies and policies.
• Reputation opportunities and risks.
• Supply chain risk.
• ESG solutions.