Vice President, Corporate Communications, Asia+65 8468 9567
Singapore, 24 March, 2022
Marsh, the world’s leading insurance broker and risk advisor, today announced the launch of its Environmental, Social, and Governance (ESG) Risk Rating, an assessment tool that can measure an organization’s ESG performance, enabling them to improve their ESG risks, and gain access to additional insurance market capacity.
Measured against more than 10 internationally recognized standards and frameworks published by leading organizations – including the Global Reporting Initiative, Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures, and the World Economic Forum – the ESG Risk Rating scores a client’s performance across 18 ESG themes. On completion of the free assessment, the organization receives an overall ESG risk score, as well as a rating for each ESG component.
Clients will use the results to identify their most critical sustainability and climate-related risks and opportunities to further develop their ESG strategies. As organizations are increasingly being asked to provide ESG metrics as part of the procurement process, the rating can be shared with the organization’s external stakeholders.
“Embedding ESG is increasingly a source of competitive advantage to the organizations that do it well,” said Amy Barnes, Head of Climate and Sustainability Strategy, Marsh. “With the ESG Risk Rating, we are providing our clients with a clear framework from which to better understand their ESG performance, make more informed investment decisions, and realize better risk management outcomes.”
James Addington-Smith, CEO of Marsh South Asia added: “Marsh firmly believes that insurers should recognize organizations with strong ESG frameworks as better risks. Our risk advisors can support our clients’ improvement journey with a range of sustainability services linked to the 18 themes in the ESG Risk Rating, such as climate reporting.”
As part of the development of the ESG Risk Rating and to support clients in managing their ESG risks, Marsh also plans to publish anonymized ESG risk insights by country and sector, deepening our understanding of how ESG ratings performance correlates with losses.
Marsh is the world’s leading insurance broker and risk advisor. With over 45,000 colleagues operating in 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue nearly $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.