ESG framework launched to help SME customers
Source: Middle East Insurance Review | Dec 2021
QBE Insurance has developed a tool to provide a risk management framework for customers to assess their environmental, social and governance (ESG) risk better.
Developed by QBE’s risk solutions practice, the tool provides a template sustainability policy and ESG framework to help smaller and medium sized enterprises identify, monitor and manage a range of ESG issues that may impact their business.
The Australian insurer in a media release said, “It has recognised that while many larger businesses have been putting frameworks into place due to increasing disclosure requirements, smaller and medium sized businesses may not have put these into place and are often more limited in terms of budgets and resources for sustainability projects.”
The insurer said, “Events such as large-scale pollution, recalls on dangerous products, employee safety, unethical behaviour, poor management and financial collapses can all impact customer loyalty, profitability and ability to operate. These types of incidents often draw prolonged media attention, promote shareholder activism and public policy debate that can make things worse and cause extreme reputational damage.”
According to recent research by QBE, small-to-medium sized businesses were less likely (26% and 34%) to say ESG was currently a top priority for their business than larger businesses (54%), but over a third of small businesses (34%) and nearly half of medium-sized businesses (46%) said they were currently worried about potential liability from failing to deliver on environmental initiatives or report climate related exposures. M