With significant evidence that sustainable companies are likely to be more profitable in the long run, the case for environmental, social, and governance (ESG) action is strong in every industry.
As institutional investors and underwriters of risk, insurers should use their size and influence to encourage ESG progress in other sectors. For insurers specifically, several trends will shape ESG strategies. These include the rise in global warming-induced severe weather events and COVID-19, which has worsened existing social inequalities. Insurance companies will need to tackle these issues to ensure sustainability.