Development of Climate Change and ESG Frameworks
The Client’s Needs
The client is an independent reinsurance group with a well-established regulated presence in Europe, the Middle East and Latin America. It provides a wide range of niche and specialty reinsurance products to property and casualty insurers.
The client wished to ensure that it was appropriately protected against the effects of global climate change and that its Environmental, Social and Governance (ESG) framework was appropriate for the business it operates and in line with the regulatory, legal and other environments in which it trades. It had created a working group to establish and implement a strategy to achieve this and requested that ICSR advise and assist the working group.
ICSR provided a team of specialist resources to assist the client in assessing all current sources of relevant laws, regulations and criteria impacting its businesses and determining their potential impact. A gap analysis was undertaken, looking at the clients’ activities and controls to determine the effectiveness of those in mitigating the impact.
We supported the client in developing its strategy and plan and implementing the necessary change to deliver its plan, including integration with existing Board reporting processes (ORSA), and the required disclosure to regulators and in financial statements. The approach also accepted that further requirements in the areas of Climate Change would arise so the solution included ensuring the Client had a framework in place which would evolve as requirements changed.
The client’s brief required a broad range of specialist skills. ICSR deployed a team overseen by a Director and supported by a Senior Consultant but with Talent Pool members involved for their skills and experience. The approach was also designed to be the most cost-effective resourcing proposal.
The client has a clearly stated strategy and framework for managing its climate change and ESG risks and has established the necessary processes to control, manage and report those in all relevant jurisdictions.