How do you measure ESG risk?

While the consideration of environmental, social, and governance (ESG) issues isn't a new concept, the increased focus on performance is. This has given rise to issues that companies must consider more thoughtfully, such as:

• Resource availability   
• Ethical behavior
• Biodiversity impacts

This requires organizations to focus inward on the internal oversight mechanisms, governance, and culture to manage these risks. With an evolving regulatory landscape, mishandled or unaddressed ESG risks can result in:

• Reputational damage  
• Legal action  
• Decreased profitability and long-term viability  

Embedding ESG in your business offers a competitive advantage for the companies that do it right. Additionally, various stakeholders, including insurers, are interested in understanding ESG performance.

To understand your organization’s current ESG performance, you can complete the Marsh ESG Risk Rating self-assessment. This free tool will assess your organization across 18 core ESG themes and help you define the milestones for your ESG journey.

Your ESG Risk Rating provides a starting point in understanding how your ESG performance may be perceived and—potentially—how it’s communicated to insurers.

What are the other benefits of finding your ESG Risk Rating?

• Measure how your business is positioned compared with international best practices and standards.

• Manage ESG risks and opportunities by identifying, prioritizing, and integrating them into risk management planning.

• Communicate ESG strategy and performance in a structured and detailed framework to insurers and potential capacity providers.