Marsh launches ESG Risk Rating tool

Marsh has announced the launch of its Environmental, Social, and Governance Risk Rating assessment tool.

Designed to help measure an organisation’s ESG performance, improve their ESG risks, and gain access to additional insurance market capacity, the tool measures against more than 10 internationally recognised standards and frameworks, including the Global Reporting Initiative; Sustainability Accounting Standards Board; the 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 free assessment, the organisation receives an overall ESG risk score, as well as a rating for each ESG component.

“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.”

As part of the offering, Liberty Mutual Insurance will offer its clients in the US and Canada who opt in to Marsh’s ESG Risk Rating complimentary access to risk advisory services relating to sustainability and climate-related risks and opportunities.

Tracy Ryan, president of North America Global Risk Solutions at Liberty Mutual Insurance, explained: “We are excited to collaborate with Marsh on this important initiative to help firms improve their understanding of their ESG risks. Our risk advisory offer is in mutual recognition of the importance of ESG and Liberty’s commitment to help clients advance their sustainability journeys.”

Marsh also plans to publish anonymised ESG risk insights by country and sector, deepening the collective understanding of how ESG performance correlates with losses.

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