Environmental, social and governance risk
We are in an ever-increasing world of having to assess our risks. As rail operators we are more than aware of the responsibility of assessing those risks associated with operating our railway and workplace health and safety.
BUT have you ever assessed your organisation for Environmental, Social and Governance (ESG) Risk? If I was a betting man, I would safely assume most ATHRA members have never assessed these.
Why measuring ESG is crucial
Embedding ESG in your business is increasingly a source of competitive advantage for the companies that do it right. Additionally, a range of stakeholders, including insurers, are increasingly interested to understand ESG performance. Your ESG Risk Rating provides a framework through which to understand how your ESG performance may be perceived and, potentially, to communicate your company’s performance to insurers.
Marsh has developed this clear framework for ATHRA members to better understand their ESG performance, make more informed investment decisions, and potentially negotiate better insurance outcomes as a key priority. ATHRA Members can use the results to identify their most critical sustainability-and climate-related risks and opportunities, and work with Marsh’s advisors to further develop their ESG strategies. They also can choose to share the results with insurers –which are becoming increasingly more inquisitive and concerned about ESG risks –to potentially achieve better underwriting outcomes.
At the recent ATHRA Conference, our insurance brokers, Marsh, gave a session of assessing risk in these areas. It is with great pleasure that ATHRA and Marsh are able to provide our members some resources to assess ESG Risk and obtain an ESG Risk Rating. This yet another ATHRA member benefit and an invaluable tool to help mitigate/control risk in your organisation.
There are two documents that Marsh have proudly put together for ATHRA members:-
- ESG Risk Rating – Guidance Document
- This guidance document is intended to give a practical overview of the ESG Risk Rating,and the benefits you will derive from it. It also includes the full set of questions in the appendix so that you can prepare for the assessment.
- ESG Pulse Check
- With 12 questions, the ESG Pulse Check is a 10-minute way to rapidly identify your largest ESG gaps. It provides you with clear recommendations on which standards to address as an organization, and what resilience measures you could look to deploy. It’s also a precursor to Marsh’s award-winning ESG Risk Rating.
Should members wish to complete the full ESG Risk Assessment, we can put you in touch with the team at Marsh to guide you through the process and offer advice.
I encourage all ATHRA members to consider utilising this tool.
ATHRA Insurance Coordinator