View this article online: https://www.carriermanagement.com/features/2020/12/21/214966.htm
Ranking U.S. Insurers: How They Score on ESG Performance
For the past several years, environmental, social and governance (ESG) factors have figured prominently in the investment decisions of institutional investors, pension funds and shareholders. The reason is the potential impact of these factors on the value of their investments.
Executive Summary
The insurance industry is in a singular position to effect positive ecological change, heal social inequities in the workplace, and enhance corporate behaviors by neither underwriting or investing in companies that harm the environment, engage in anti-competitive corporate practices, and lack diverse representation of women, people of color and LGBTQ individuals in management ranks. How are they doing with all of that? Veteran journalist Russ Banham asked four assessors about ESG performance, finding that P/C insurer scores on the "E" factor are lagging in terms of who they insure and where they invest.Executive SummaryThe insurance industry is in a singular position to effect positive ecological change, heal social inequities in the workplace, and enhance corporate behaviors by neither underwriting or investing in companies that harm the environment, engage in anti-competitive corporate practices, and lack diverse representation of women, people of color and LGBTQ individuals in management ranks. How are they doing with all of that? Veteran journalist Russ Banham asked four assessors about ESG performance, finding that P/C insurer scores on the “E” factor are lagging in terms of who they insure and where they invest.
Property/casualty insurers and reinsurers also are large institutional investors. They also underwrite companies with ESG-related risks that may adversely affect their financial condition and creditworthiness, the case with coal mining entities and coal-fired plants that increase air pollution and contribute to climate change.
