assess an organization’s ESG performance and allowing firms to improve their ESG risks and obtain access to additional insurance market capacity.
Marsh’s ESG Risk Rating is based on more than ten globally recognized standards and frameworks developed by top organizations such as the Global Reporting Initiative, the Sustainability Accounting Standards Board, the Task Force on Climate-related Financial Disclosures, and the World Economic Forum. It rates a client based on their performance in 18 ESG topics. The organization gets a rating score for each ESG entity and an overall ESG risk score following the completion of the free evaluation. Using the final results, businesses can prioritize their most significant sustainability and climate-related concerns.
The US and Canadian clients of Liberty Mutual Insurance clients who choose Marsh’s ESG Risk Rating will get complimentary risk consulting services associated with sustainability and climate-related risks and opportunities as part of the offering.
Amy Barnes, chief of climate and sustainability strategy at Marsh, expressed hopes over the new tool. She said, “Embedding ESG is increasingly a source of competitive advantage to the organizations that do it well. With the ESG Risk Rating, we are providing our clients with a clear framework from which to better understand their ESG performance, make more informed investment decisions, and realize better risk management outcomes.”
Tracy Ryan, president of North America Global Risk Solutions at Liberty Mutual, expressed delight over the partnership. She said, “We are excited to collaborate with Marsh on this important initiative to help firms improve their understanding of their ESG risks. Our risk advisory offer is in mutual recognition of the importance of ESG and Liberty’s commitment to help clients advance their sustainability journeys.”
Marsh also intends to share anonymized ESG risk insights by county and sector under the ESG Risk Rating development process. The broker introduced a directors and officers insurance campaign in 2021 to identify clients with excellent ESG frameworks in the United States. Marsh clients are evaluated for preferable D&O policy terms and conditions on ESG-related exposures following an independent examination of their ESG platform.
