As each year passes more investors, consumers and other stakeholders ‎push for sustainable, moral and ethical business and consumption practices. These concerns have led to the adoption of programs to manage and disclose the performance of companies according to environmental, social and governance criteria (ESG). Governments in Europe have mandated ESG disclosures. Some states have already developed regulations and various federal agencies are evaluating potential risk assessment disclosure requirements for some or all of the ESG factors. The insurance industry has been a key part of the ESG movement and will be a focus of ESG regulation going forward.

ESG Introduction

Each of the three ESG pillars have their own considerations but interact to support a sustainable enterprise. The environmental component examines how a company acts as a steward of its natural environment. Key issues include climate impact and risk and waste and water management. The social component looks at how a company treats people and its community focusing on issues like diversity, equity and inclusion. The governance component examines a company's management systems, including issues like transparency and corruption.