Chaucer Calls for Standardized ESG Metrics

At a Sustainability Forum hosted in collaboration with Moody’s, Chaucer called for an industry-wide standard to improve the quality of ESG disclosures by insureds, arguing that clients and brokers are frustrated by lack of uniform methods of measurement and reporting.

“In hosting Chaucer’s first Sustainability Forum, our mission was to provoke vital ESG discussions with the wider (re)insurance industry so that we can ensure a sustainable future for all," said Chaucer CEO James Wright.

"Across the industry, we must hold ourselves and our counterparties to account on crucial ESG factors, as sustainability becomes increasingly important to company stakeholders and customers alike" added Wright. "For ESG reporting to be robust and useful it needs to be consistent. Without that standardisation, our industry’s efforts to measure the ESG performance of our clients carry too much risk for error, inefficiency and frustration amongst customers.”

Last year, Chaucer collaborated with Moody’s to develop an ESG Balanced Scorecard that measures the performance of clients and business partners. The scorecard uses up to 158 unique data points to assign scores across various ESG factors – including on the disclosure of greenhouse gas emissions, health and safety of workers and boardroom diversity – to give underwriters better visibility of a client’s current ESG performance.

“We designed Moody’s ESG Insurance Underwriting Solution, with the support of Chaucer Group, to help (re)insurers operationalize the way they measure ESG risk at the point of underwriting" said Mike Steel, General Manager of RMS, a Moody’s Analytics company. "We can do so through the combination of data, technology and industry knowledge that we now have at our disposal following the Moody’s acquisition. By bringing these capabilities together, we are helping underwriters and portfolio managers transform ESG data into new insights on ESG risks and opportunities.”

Source: Chaucer, https://www.chaucergroup.com/news/standardisation-of-ESG-a-key-focus-at-chaucers-sustainability-forum-this-week