Today, companies in every sector are rapidly adapting traditional business models to improve their sustainability and reduce their impact on the climate. These developments come alongside the escalating frequency and severity of extreme weather-related events that test organizations’ resilience.
The ability to anticipate, measure, and manage risks will be a critical advantage as the transition unfolds. At Marsh, we help businesses ensure they are resilient throughout the transition: analyzing the evolving risk environment, preparing for what may happen, and insuring against new types of risk.
We can provide your organization with an environmental, social, and governance (ESG) lens on risk management, helping to deliver a competitive edge and commercial advantage. Together, we’ll build a proactive plan to support financial stability in your own company, while helping create a world that is sustainable for generations to come.
Each business faces vulnerabilities unique to its day-to-day operations; however, climate change has accelerated several major areas of risk in every industry, including:
Companies will need to create a proactive risk management strategy and program that addresses each of these risks, as most will experience the impact of all three in the coming years.
Increasingly, insurers are assessing the sustainability (ESG rating) of their insureds and their commitments to transition as they look to reduce emissions in their underwriting portfolios. For some companies this may result in restricted access to risk transfer, while for others it could lead to improved terms. A further consequence is product innovation to support insureds to build back better following a loss and in recognition of new exposures.
No matter your industry, you may need to consider the following insurance implications:
Although the assets each organization must consider in its risk management approach to climate change vary significantly, a comprehensive insurance policy portfolio that includes the above coverages can help mitigate losses and address risk vulnerabilities as a whole.
ESG can be a key driver of growth as well as part of business resilience. Therefore, leaders across every industry sector are focused on sustainability initiatives to reduce risk and leverage opportunity. Today, ESG needs to be part of corporate strategy and be embedded in the business and operating model.
We can help you:
For today’s leaders, maintaining day-to-day operations, while making the transition to more sustainable processes, will prove critical to remaining profitable, keeping up with consumer expectations, and staying ahead of regulatory changes.
At Marsh, we can help you create a proactive risk management program to mitigate climate change risks, protect your assets, and invest for the future of your company and the planet.