ESG

There is now increasing recognition, both from a political and social standpoint, of the criticality to our future of environmental, social and governance (ESG) considerations.  This focus will only continue to grow as a consequence of a rapidly changing legal and regulatory environment and because investors, stakeholders, current and prospective employees, ratings agencies and law-makers are now more focused on ESG strategy than ever before. 

Accordingly, central to driving business success in the UK will be collaboration between the UK Government and business to establish an eco-system where people, commerce and planet prosper in a way that is sustainable now and in the future.  

To remain successful, businesses must also examine all aspects of who they are, what they do and how they do it through the ESG lens and make those changes necessary to ensure that the business is appropriately positioned on sustainability issues to secure its success now and in the long-term.

The breadth of issues covered by the "ESG" banner and, particularly in the case of social and governance matters, the lack of a clear taxonomy can make it challenging for businesses to clearly understand what they must do to be sustainable.  Further, public awareness of ESG issues such as the carbon footprint of a business, the providence of the products supplied by a business, together with increasing demands from regulators and wider stakeholders that a business demonstrates compliance with ESG metrics, means that no business can afford to ignore such considerations.

How we can help

‘We are operating in one of the most challenging periods in living memory.’ Rebekah Clement discusses why Lloyd’s is investing so heavily in ESG, and how important our role as advisers is in supporting clients who are grappling with the rapidly changing regulatory and policy landscape, and the strategic decisions they need to make to ensure longevity and drive value to customers.

Our knowledge of ESG matters, coupled with our sector-focused expertise and experience can help businesses navigate this complex area. In particular, we can help by:

•  bringing clarity to the complex and fast developing legal and regulatory background driving ESG considerations and helping your business shape its response to those requirements, opportunities and risks;

•  engaging effectively with policy-makers and regulators that will shape the environment in which your business operates;

•  undertaking a sustainability and business integrity ‘healthcheck’ to identify and establish corporate purpose and clear ESG iniatives/targets;

•  evaluating supply chains and procurement processes to ensure that they appropriately deal with ESG considerations;

•  ensuring that governance structures are “fit for purpose” and drive appropriate behaviours within your organisation;

•  evaluating best practice with regards to talent management, diversity and inclusion, employee engagement, corporate purpose, culture, reward and remuneration and tax practices; and

•  in cases of crisis, assisting in responding to and dealing with that crisis.

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