’Financial institutions will play a crucial role in the transition to a green economy,’ says regional director
Insurtech Crif has launched a new solution to help UK insurers better understand how compliant partners and customers are with environmental, social and governance (ESG) principles.
Called ESG Analytics, the solution allows insurers to assess the profiles of UK and EU-based firms using the VAT or registration number of that business.
It can analyse a range of factors, including a business’s water usage, waste production, emissions, health and safety record, modern slavery stance and inclusiveness.
Sara Costantini, Criff’s regional director for the UK and Ireland, said: “Considering the growing attention of the regulatory bodies towards ESG compliance in the EU but also in the UK, ESG Analytics enables banks, insurers and corporates to understand the impact of businesses they work with today and help inform their decision-making in this ever-more important area of work.
“And by working with regulatory bodies all around the world, we ensure we remain at the forefront of regulation so we can pass this knowledge onto UK financial institutions.”
Protection
Crif published the solution in the UK after ClimateWise found that financed and insured emissions continue to be challenging for insurers to measure and disclose.
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Its Independent Review report, published in January 2023, said that “immediate demands of the climate crisis require consistent improvement at pace from all stakeholders in the insurance industry”.
Crif’s new solution aims to enhance pricing competitiveness, provide safeguarding measures against future risks and calculate scope three emissions.
Scope three involves emissions that are not produced by the company itself, but instead by those that it is indirectly responsible for across the value chain.
Costantini said: “There’s no doubt that protecting the environment for future generations is the number one most pressing challenge for individuals, businesses, and governments today.
“Financial institutions will play a crucial role in the transition to a green economy. For insurers in particular, efforts to reduce their impact on the environment and promote good governance and social responsibility are going to be more and more important in the near future.”
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