World’s insurers and UN Environment Programme launched the first global insurance industry guide to tackle sustainability risks, co-led by United Nations Environment Programme (UNEP) and Allianz and involved other leading insurers, insurance associations, and academic institutions from across the globe. The members of the Principles for Sustainable Insurance project team that developed the guide include American Hellenic Hull Insurance Company, American Property Casualty Insurance Association, AXA, Generali, MAPFRE, Munich Re, QBE, RSA, Santam, Swiss Re, Temple University’s Fox School of Business, University of Technology Sydney, West Chester University, and Zurich.
“AHHIC is the exclusive marine insurance company, among world’s insurers and institutions, participating in the development of the first global guide, which provides the framework for the insurance industry to manage Environmental, Social and Governance issues”, underlined Mr. Ilias Tsakiris, CEO of AHHIC.
Following a comprehensive global consultation process, leading insurers from around the world and the UN Environment Programme (UNEP) launched the first global insurance industry guide to tackle a wide range of sustainability risks—from climate change, ecosystem degradation, pollution and animal welfare and testing; to child labour, controversial weapons, and bribery and corruption.
The guide, Managing environmental, social and governance (ESG) risks in non-life insurance business, outlines 8 areas comprising possible actions for insurers to manage ESG risks—also known as sustainability risks—in non-life insurance transactions, focussing on risk assessment and insurance underwriting. These areas include developing a company’s ESG approach and risk appetite, integrating ESG issues into the organisation, establishing roles and responsibilities for ESG issues, escalating ESG risks to decision-makers, detecting and analysing ESG risks, and decision-making and reporting on ESG risks.
“We are proud to be the exclusive marine insurance company to sign the United Nations agenda, supporting the United Nations Environment Programme Finance initiative, Principles for Sustainable insurance since June 2019. As members of the global community of banks, investors and insurers of UN Environment Programme Finance Initiative, we encourage the insurance industry to endorse ESG issues in underwriting, risk assessment and investments, and support the United Nations initiative. It’s time for action and as underwriters we need to fully embrace sustainability in all aspects of our business activity.”, stressed Mr. Ilias Tsakiris.