Contributed by: Editoral Team[Via ESG News]
Among the three facets of ESG, governance has been around the longest as an active concern but is not discussed as prominently as the other two. However, without proper governance, progress in the environmental and social categories is unlikely to be sustained.
The Conning Focus Series, “ESG in the Insurance Industry– Governance Topics and the Path Forward” analyzes how companies are addressing governance concerns and provides an overview of company actions over all ESG categories. The report also examines investors’ increasing concern with the lack of uniform ESG disclosures, and the increasing influence of activists and others looking to quicken the pace of change.
“It is clear that pressure on insurance companies will continue to increase. Pressure on the environmental front is currently the strongest, followed closely by pressure on the social front. Pressure on governance issues is less visible but is still important to monitor and address.” said Terence Martin, a Director, Insurance Research at Conning.
“More so than many other industries, the insurance industry cannot chart its course fully on its own. If the insurance industry can keep its vital risk management function in full view, the industry has a chance to make reasonable changes that address ESG concerns but still allow the industry to fulfill its critical mission within the economy,” added Steve Webersen, Head of Insurance Research.