Insurance broker and risk adviser Marsh has announced that companies in Asia can now be considered for preferred directors and officers (D&O) liability insurance policy terms and conditions, based on the strength of their environmental, social and governance (ESG) risk frameworks.
On completion of the insurer’s ESG risk rating or another approved third-party rating methodology – and subject to their risk score meeting minimum underwriting criteria – insurers on the company’s panel will consider its clients based in Asia for preferred D&O policy terms and conditions on their ESG-related exposures.
Launched globally in March 2022, the company’s Asian clients can also use the results of the ESG risk rating to identify their most critical sustainability and climate-related risks and opportunities to further develop their ESG strategies.
“As clients transition to a lower-carbon economy, robust frameworks that assess businesses’ ESG commitments, actions and performance will increasingly be required,” says Marshall Lee, head of climate and sustainability strategy, at Marsh Asia. “Prior to the launch of our ESG risk rating, the lack of standardized ESG disclosure obligations and the resulting data gaps made this evaluation challenging in Asia.”