Marsh launches ESG risk rating measure

Marsh has launched an Environmental, Social, and Governance (ESG) Risk Rating assessment tool that can measure an organisation’s ESG performance, enabling them to improve their ESG risks, and gain access to additional insurance market capacity. 

The broker also plans to publish anonymised ESG risk insights by country and sector.

Measured against more than 10 internationally recognised standards and frameworks published by leading organisations – including the Global Reporting Initiative, Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures, and the World Economic Forum – the ESG Risk Rating scores a client’s performance across 18 ESG themes.

On completion of the assessment, an organisation receives an overall ESG risk score, as well as a rating for each ESG component. They can use the results to identify their most critical sustainability and climate-related risks and opportunities to further develop their ESG strategies.

The rating can be shared with the organisation’s external stakeholders. “Embedding ESG is increasingly a source of competitive advantage to the organisations that do it well,” said Amy Barnes, head of Climate and Sustainability Strategy, Marsh.

“With the ESG Risk Rating, we are providing our clients with a clear framework from which to better understand their ESG performance, make more informed investment decisions, and realise better risk management outcomes.”