Marsh extends ESG-led D&O capacity to European firms

Clients in Continental Europe can access additional directors and officers liability (D&O) insurance capacity, based on the strength of their environmental, social, and governance (ESG) risk scores and ESG risk management frameworks, Marsh has announced.

On completion of Marsh’s ESG Risk Rating – and subject to their risk score and meeting minimum underwriting criteria – insurers AIG and Zurich will consider Marsh clients based in Continental Europe for preferred D&O policy terms and conditions on ESG-related exposures, such as climate change disclosures and representations.

The extension of the program to Marsh’s clients in Continental Europe follows an increase in European Union regulation concerning ESG and sustainability reporting, which includes the Non-Financial Reporting Directive (NFRD), introduced in 2018, and the Corporate Sustainability Reporting Directive (CSRD), which could be adopted by the EU by the end of 2022.

Amy Barnes, head of Climate & Sustainability Strategy at Marsh, commented: “We are pleased that clients in Continental Europe will now be recognised for their efforts in managing the risks associated with ESG and the transition to a low-carbon economy, which will be of benefit to us all in the future.”

Nilay Ozden, Financial and Professional Practice leader, Continental Europe, Marsh Specialty, added: “Since 2018, the European Union and many countries across the continent have published ambitious programs of ESGrelated regulatory measures, which are having a significant impact on the way in which companies operate.

”Marsh welcomes the support of AIG and Zurich in Continental Europe on D&O risks, as we continue to expand our services and solutions and help our clients realise their ESG and net-zero ambitions.”