Why it matters
The choices we make about our investments and the risks that we underwrite are an important opportunity for positive impact.
Environmental, Social and Governance (ESG) covers a wide range of areas, such as whether a business uses energy responsibly, considers human rights issues and consumer welfare, or displays good checks and balances in the way it is run. We are working to embed ESG considerations into our business decisions.
In addition to being the right thing to do, a positive approach to ESG issues is a good indicator of the overall quality of a business’s management practices, and therefore their likelihood of long-term success.
As a signatory to the United Nations Principles for Sustainable Insurance (PSI) and a member of ClimateWise, it’s important that we make informed decisions about the types of risk we choose to underwrite and where we invest our premiums.
To oversee our approach, we have established an ESG Committee, chaired by our Group Chief Risk Officer and comprising senior representatives from investment, underwriting and risk teams. The Committee is responsible for assessing key issues, recommending our company position and monitoring how these are integrated into business practices.
In 2019, the committee reviewed ESG issues associated with higher-risk sectors and developed a new Group-wide Climate Change and Low Carbon Policy. This outlines our role in insuring renewable energy generation projects and restricts capacity available to carbon-intensive industries.