Guernsey has announced the creation of an environment, social and governance (ESG) framework for insurers.
Designed by the Guernsey International Insurance Association (GIIA), the framework aims to help member organisations manage ESG opportunities and risks and to deliver positive ESG impact.
“ESG-related criteria has moved from a peripheral concern to one that's front and centre of decision-making,” said GIIA chairman Mark Elliott.
“This framework acknowledges we are a long way from agreement on a single standard for ESG in the insurance space. It is an important first step on the journey towards recognising the work that Guernsey insurance entities do in achieving sustainable development goals and ensuring ESG is at the heart of their governance structures.”
The framework enables insurers and insurance managers who are members of GIIA to self-certify, and work is under way to create a kitemark through a third-party accreditation process.
It follows the United Nations’ recommended approach of incorporating ESG processes to align sustainable development goals with the outcomes of financial services products, services and investments made by the insurer.
The framework sets out four pillars of requirement that must be fulfilled to comply with the framework:
• To embed ESG within the decision-making and governance structure
• The risks underwritten to contribute to achieving the sustainable development goals
• The investments held to contribute to achieving sustainable development goals
• The insurer to publicly disclose how it has met the framework’s requirements.