ESG in insurance: A practical guide to sustainability reporting

New sustainability requirements are changing the business landscape, and insurance leaders are increasingly recognising the environmental, social and governance (ESG) agenda as an indispensable part of their corporate strategy. Investors and stakeholders are shifting their focus on ways in which insurance organisations can run a more sustainable business, support the transition to a low carbon economy, and improve other environmental, social, and people-centered outcomes. Sustainability reporting has become commercially and strategically important in its own right and offers a number of potential benefits to those who can successfully evolve their operating model.

Sustainability reporting does present some challenges. Whereas there are long-established processes and controls in place for financial reporting, the same is not the case for nonfinancial information. This data comes from across the organisation, and for new areas like climate and nature, is notably less mature in terms of quality and completeness — so there is a need for better collaboration and transparency, with new reporting discipline instilled in colleagues for whom this is unfamiliar, to support upcoming disclosure requirements such as the EU’s Corporate Sustainability Reporting Directive (CSRD). KPMG firms have worked closely with insurance organisations around the world to embrace the opportunities of sustainability reporting.

In this report, KPMG ESG professionals share key insights and considerations, along with practical steps, to help insurance firms navigate this evolving landscape in a pragmatic and efficient way. The team also shares how leading insurance organisations are tackling sustainability reporting. Read on to discover how KPMG can help to unlock reporting disclosures across the organisation.