Sustainability and ESG Regulatory Guide for Insurers
Reference guide for European jurisdictions
In under 20 years, the Sustainability and ESG (Environmental, Social, and Governance) movement has transformed from a United Nations initiative on corporate social responsibility into a worldwide phenomenon that is restructuring the business environment. For insurers, the development of ESG mirrors the transformative shift from Solvency I to Solvency II, as the industry is experiencing a similar transformation in preparation for the growing importance of Sustainability & ESG criteria, and the related increase in risk.
The heightened awareness of Sustainability and ESG, coupled with new regulations and instances of climate-related disasters, is elevating its prominence on the industry agenda. While ESG laws are not entirely novel, their obligatory impact has intensified, affecting various facets of insurance companies, including underwriters, loss managers, claims handlers, legal teams, and the compliance function.
The integration of Sustainability and ESG goes beyond mere compliance; it is pivotal for competitive positioning and economic transition. Companies must acknowledge that the current economic landscape is transient, and embedding ESG into legal and compliance frameworks is imperative for future competitiveness and sustainability.
Staying abreast of developments entails monitoring EU publications, conducting comprehensive assessments of legislations, scrutinizing insurance products for compliance, and keeping abreast of timelines for the various directives and regulations.
This Guide will help our clients understand the ever more complex jungle of sustainability & ESG regulation at EU level, and how it affects their business. For more detailed guidance, our lawyers across the various jurisdictions will be happy to advise.