Insurance and reinsurance broker Marsh has launched its Environmental, Social, and Governance (ESG) Risk Rating, an assessment tool that can measure an organisation’s ESG performance, enabling them to improve their ESG risks, and gain access to additional insurance market capacity.
The rating tool can assess against more than 10 internationally recognised standards and frameworks published by leading organisations, including the Global Reporting Initiative, Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures, and the World Economic Forum.
On completion of the free assessment, the organisation receives an overall ESG risk score, as well as a rating for each ESG component.
Clients will be able to use the results to identify their most critical sustainability and climate-related risks and opportunities to further develop their ESG strategies.
As part of the offering, Liberty Mutual Insurance will offer its clients in the US and Canada who opt-in to Marsh’s ESG Risk Rating complimentary access to risk advisory services relating to sustainability and climate-related risks and opportunities.
Amy Barnes, Head of Climate and Sustainability Strategy, Marsh commented: “Embedding ESG is increasingly a source of competitive advantage to the organisations 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 realise better risk management outcomes.”
“Marsh firmly believes that insurers should recognise organisations with strong ESG frameworks as better risks. Liberty Mutual’s risk advisory benefit is a positive step forward on this journey; we look forward to working with other parts of the insurance market on this important initiative.”
Tracy Ryan, President of North America Global Risk Solutions at Liberty Mutual Insurance, added: “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.”
