ESG Blog: On the trail of green regulation and reporting

With new rules set to come into effect in 2022 that will make ESG reporting mandatory for large companies, Allianz’s Head of Strategy and Proposals Glen Clarke reflects on what companies will need to do to account not only their own emissions, but those of their Suppliers.

This year (2022) seems to be the year of the sustained push. After COP26 last year, when financial services firms felt ambition was lacking, now is the time for financial services to lead by example for the rest of the world. UK.

The insurance industry has shown enormous ambition and potential in the area of ​​innovation and advancement in technology. Why not use it and show that we can also lead the way in supporting sustainable solutions and operations?

Over the next few years, a company’s environmental performance could become a new competitive factor to stimulate business and increase the establishment of the industry. Companies that can demonstrate greater awareness and proactivity towards environmental factors and processes will be more attractive to potential customers and business customers, and this is a tactic of useful marketing.

However, this cannot be a driving force why a company adopts sustainable solutions; it must be a genuine desire to be more environmentally conscious.

The Net Zero Insurer Alliance is part of the Glasgow Financial Alliance for Net Zero, which encompasses and includes over 450 financial companies in 45 countries, with combined assets of over $130,000,000 (£99,000). the NZIA commits its members to measuring and reducing greenhouse gas emissions not just from their own operations, but from across their entire portfolio. To be a member of the alliance, companies must register with the Race to Zero initiative, which is the United Nations-backed campaign encouraging companies to commit to science-based targets supporting the reduction of global emissions by 50 % by 2030 and – eventually – Net Zero by 2050.

Within insurance, governing bodies and institutions are creating a world where worldwide sustainability is essential.

In insurance, governing bodies and institutions are creating a world where global sustainability is essential

From 1 January 2022, Lloyd’s has instructed its managing agents to no longer provide new insurance or investment cover in businesses such as thermal coal-fired power stations, thermal coal mines, oil sands and Arctic energy exploration. By January 1, 2030, these agents will have phased out all existing cover for these activities, and Lloyd’s will have already achieved this four years prior, by the fourth quarter of 2025.

Emerging regulations and requirements

the NZIA regulations and requirements are beginning to emerge. Currently, companies are looking at their own carbon footprint, focusing on how they can modify their own operations to become more sustainable – and rightly so.

But where is it going? What can we expect to be asked of us in the future?

Financial firms with a large customer base and portfolio will need to start reviewing their customers’ transactions. Soon, these companies will not only have to start reporting on their sustainability performance, they will also have to start reporting on what their customers are doing and how they are helping them achieve Net Zero operations. .

This is a complicated process that will take a lot of time to collect data, research potentially tailored solutions for different customers based on their operations, and provide evidence that they are doing what they can to help those customers. in their journey.

This is an opportunity for the industry to be at the forefront of the fight against climate change and lead the journey to Net Zero, and the regulations that are in place support this. Let’s outperform.

Posts ESG To exchange

This article is part of Posts ESG Exchange from March 7-18 with open-access webinars, blogs and interviews focused on ESG.

Today ESG is a powerful tool in the insurance industry, presenting both risks and opportunities for businesses. Join now to watch one of ESG targeted webinars and have the opportunity to explore and read future content online.

  • what CLEVER environmental objectives for the insurance sector?
  • Execution ESG practices throughout the insurance supply chain.
  • What are some of the challenges in creating a more diverse workforce?
  • Which business area should you focus on first when implementing the ESG Agenda
  • Will ESG reputation ends up being one of the main attractions for insurers in terms of investments?

To register, please click here

You cannot currently copy this content. please contact [email protected] to know more.

Comments are closed.