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Gabrielle: The term ESG encompasses a wide range of factors – environmental, social, and governance risks that cut across industries and business segments with varying levels of impact.

We see a greater focus on environmental risk, as it represents the biggest stake in terms of financial, operational and market liabilities. The climate emergency has been increasingly damaging in terms of physical risk, resulting in losses in every region across many industries.

Fortunately, environmental impacts, especially weather events, are relatively easily measured, so we can collect and utilize data to predict impacts and improve resilience.

Risks will increase with the energy transition as companies align with global standards and set out emission reduction roadmaps. The transition is inevitable, but some technologies are not as advanced as they need to be to support this in all sectors. This will carry considerable risk for industries attempting to move towards a low-carbon economy. The energy industry is particularly impacted, which will impact other large industries, from transportation and mobility to marine and shipping. We will collaborate closely with these sectors to support them on their transition journey.

Beyond climate, there are biodiversity risks arising from how business activities impact an ecosystem, which will increase as more biodiversity-focused regulations are introduced. The social aspect of ESG is also the focus of increasing regulation, such as the German Supply Chain Act, which takes a closer look at the human rights side of supply chains.

Overall, I expect risks and opportunities going forward to arise from a mix of evolving market needs, regulatory changes, and necessary modifications to the way we do business.

Large corporates would benefit from establishing dedicated teams to assess and reduce external threats, or tap into external sources that provide this. Smaller companies with limited resources could collaborate with their insurer to gain a better understanding of risk.

Gabrielle: Â鶹´«Ã½app recently announced its first with the goal of achieving net-zero emissions in our proprietary investment and Property & Casualty (P&C) underwriting portfolios by 2050. We are also committed to achieving 150% profitable growth in revenues from renewables and low-carbon technology solutions in the commercial insurance segment by 2030 and are investing an additional €20bn in climate and clean-tech solutions. Within our own operations, we aim to be carbon-free by 2030. 

As a global insurer and investor our role allows us to provide financial and risk transfer or mitigation solutions that facilitate the transition to a low-carbon economy. We are committed to helping businesses and communities understand the importance of financial protection, and offer tailored solutions to reduce risks, as well as leveraging our cross-industry and regional experience to understand and recommend best practice. 

My team covers three key areas: emerging technology to support transition; emerging risks from climate change, biodiversity, and governance issues; and innovation to ensure we create efficient, affordable solutions.

Our aim is to develop solutions that cater to a changing market and support new business players emerging from these changes. We will support the transition by actively engaging with the market – our customers, but also external organizations – to build and share the knowledge that will drive the transition forward.

Gabrielle: I moved from a pure finance role into insurance around 10 years ago and since then the world has experienced the impacts of a pandemic, increased threats from cyber-attacks, and a political and socioeconomic crisis that is driving increased migration and levels of poverty globally. Poverty among children particularly shocks me, which is why closing the income protection gap, improving financial literacy, and increasing focus on societal impacts is so important. 

In five years, I’m confident sustainability will not exist as it does today, because it will be integrated into our daily business. It will become the way we subconsciously operate. To drive this, there needs to be increased collaboration across business functions and industries, and that’s exactly what we as Â鶹´«Ã½app Commercial are ready to do.