Insuring the New Green Order: ESG and Its Increasing Impact on the Insurance Industry

Locke Lord’s Brittany Batts co-authored an article for New York Law Journal discussing the insurance industry’s unique position in the ESG landscape. The authors observe that, as managers of risk, insurers must address ESG issues in investment and underwriting decisions in addition to their own operations. The article explains various ESG regulations that are significant to the insurance industry as harbingers of future state regulation, federal actions and possible enforcement measures.

“To avoid green washing or other disclosure issues, insurance companies should strongly consider developing an ESG policy and program to develop disclosures. An ESG policy is a written document or approach to enterprise-wide ESG. An ESG program consists of the management tools, metrics and reporting mechanisms that implement the policy and undergird any ESG disclosures,” they write.

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