Risk Spotlight: How do you know your ESG initiatives are having an impact?

Climate events and social justice have dominated headlines in recent years, with the understanding and prioritisation of these issues only increasing.

As a result, there is growing pressure on businesses to take concerted and measurable steps to ensure they are operating in ways which reflect the values of the society they serve and are deemed ESG compliant.

But where are businesses finding the data to report successful ESG metrics? How is success being defined? And how is the (re)insurance industry incorporating all of this into investment and underwriting decisions?

In the latest instalment of our Risk Spotlight docuseries, Liberty Specialty Markets’ global head of energy Lesley Harding and WTW’s ESG global products leader Jonathan Weatherly explain the importance of participation and collaboration if the industry wants to make positive leaps in the ESG space, as well as maintain relevance in today’s world.

(Re)insurers and their clients are beginning to expect transparency on ESG commitments as this now plays into important decisions regarding how they work with each other.

In the episode, we look at the energy sector, where we’ve seen some (re)insurers respond decisively with plans to phase out oil and gas underwriting completely, while others have opted for a more gradual transition with a focus on educating clients along the way.

But whatever the context, it’s clear there is no limit to the advantages of having a strong foundation for producing, measuring and acting upon ESG data to inform business decisions.

ESG is now an essential decision-making tool for many companies and is the key to building a better, more sustainable future.

Watch this 13-minute Risk Spotlight episode to learn more about:

  • The mounting pressure on the industry to declare formal and comprehensive ESG strategies
  • The implications for business and client relationships
  • Why the standardisation and transparency of data-sharing practices are paramount to the success of the industry’s efforts
  • What has been done so far, focusing on the energy sector
  • The emerging tools and resources available to aid businesses in monitoring their outputs, subsequently helping them to adopt the right ESG practices in order to have the most positive impact