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What’s happening: The 2022 United Nations Climate Change Conference (COP27) is currently taking place, where leaders from all over the world gather to show solidarity and take action on key issues from climate finance to climate adaptation to oceans and shipping. COP27 is the formal meeting of The United Nations Framework Convention on Climate Change which assesses climate impacts and establishes obligations for participants to reduce those impacts.

Why it matters: Organizations that prioritize ESG and related sustainability initiatives can have a positive impact on communities and the environment, and studies show these companies also achieve, on average, better corporate results.

The role of captive insurance: Aon’s new report, “Using a Captive Insurance Company to Drive Positive ESG Outcomes,” highlights the meaningful role captive insurance companies can play in supporting their parent companies’ ESG strategy. It also discusses how the United Nations Environmental Programme Finance Initiative (UNEP FI)’s Principles for Sustainable Insurance (PSI) can help captive owners address ESG risks and offers a perspective to captive owners, insurers and regulators on:

• Potential ways that a captive can support sustainability objectives
• How to embed ESG and sustainability concerns into a captive insurance strategy

Learn more:  Ciaran Healy, director of client solutions - EMEA, Aon Captive & Insurance Managers, and Butch Bacani, who leads UNEP FI’s  Principles for Sustainable Insurance Initiative,  discussed the meaningful role captive insurers can play in supporting their parent companies’ ESG strategy at the European Captive Forum in Luxembourg.

• Aon was recently awarded ESG Captive Initiative of the Year at the European Captive Awards for its work promoting sustainable insurance practices to captive clients. Check out the details here.