Environment, Social and Governance (ESG)

On the 12^th May 2021 Guernsey, a jurisdiction at the forefront of green and sustainable finance, has achieved another world first with the creation of an Environment, Social and Governance (ESG) framework for insurers.

It follows the United Nations’ (UN) 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 which must be fulfilled to comply with the framework. They are:

• 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, and
• The insurer to publicly disclose how it has met the framework’s requirements.