The catch-all-phrase has earned its place as part of best-practice risk management. Here are five key themes emerging for insurers:

1.It should not be quicker to make a dollar than to make a difference’ — companies that adopt a responsible agenda will be favored as “top-quartile” performers by insurers (and increased competition to underwrite risks will be a tangible economic benefit for the companies that can confidently demonstrate their ESG credentials).

2. Small-to-medium companies risk under-resourcing an effective ESG strategy. For example, Australian sunscreen company Bondi Sands faces a class action in US District Court in Northern California for green-washing their product with the use of “Reef Friendly” label.

3. D&O insurers are thinking about the reputation risk and, increasingly, legal risk where directors are potentially exposed to breach of duty claims and misleading and deceptive conduct claims. Examples include ASIC proceedings against Australian Mines and its managing director Benjamin Bell and GetSwift’s so-called “PR-Driven approach to disclosure.”

4. Will the economic downturn, supply-chain challenges and international energy crisis lead to de-prioritising ESG? Insurers will prioritise long-term relationships with companies that exude a culture of robust, forward-thinking and sound decision making as a key determinant of resilience.

5. Australian regulatory guidance is now starting to be released and is following quickly behind Europe and the UK and US.

In summary, #metoo #dataprivacy #shareholderactivism #regulatory #mergersandacquisitions #cyber #fiduciaryduty #riskmanagement and now #ESG are all trending claims payouts for insurers… management teams will do well by preparing early for their next renewal negotiation!