Sustainability and the insurance industry: a commitment to the future

ustainability and the insurance industry: a commitment to the future

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16.Nov.2022

Progress only occurs when people feel safe. It is impossible to look to the future with confidence if it is not sustainable. That is why sustainability has been part of the insurance industry's DNA since its inception. But what does this commitment look like?

In addition to the industry’s outreach work through the United Nations Environment Program Finance Initiative (FinResp), the insurance industry uses insurance underwriting to support sustainability. This is particularly evident in the case of environmental insurance, through which the industry helps its clients to improve their sustainable management, which has a positive impact on global sustainability.

ESG criteria

On the other hand, 76% of the sector -as stated in the latest Social Report on Insurance- takes into consideration ESG criteria when configuring its investment portfolio. The main criteria considered are: environmental (climate change, renewable energies, carbon footprint); social (working conditions, human rights and health); and governance (misappropriation, governance structure and business ethics).

Transparency and collaboration are two other cornerstones of sustainability. The insurance sector’s relationship with suppliers, customers, governments, authorities, non-governmental organizations, foundations and other companies makes it a great nexus of collaboration with third parties in the development of sustainable actions. Transparency is evident in the Sustainability Reports that companies in the insurance sector publish each year.

Quality employment

Spain’s insurance sector is generating some of the highest quality jobs in the country’s economy: stable and well paid, which undoubtedly represents an enormous social commitment. These are jobs that focus on training, the promotion of talent and equality: in 2021, 41% of new members in the Administration Councils were women, while in the case of Boards of Directors, 40% were women.

Financially educating society is also one of their top priorities. To do this, insurance companies help to promote financial and insurance culture in schools through various activities aimed at both students and teachers.  They have also launched a specific dual vocational training program in the field of insurance.

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