Environmental, social and governance risks such as climate change and diversity, equity and inclusion have become central concerns for some organizations, but businesses and insurers are also starting to pay closer attention to other ESG-related issues such as biodiversity and nature-related risks as regulatory frameworks evolve. Development of insurance coverages that can help restore natural ecosystems and protect the businesses and communities that depend on them is in an early stage but likely to grow, experts say. More sophisticated risk management organizations that lead on managing climate risk tend to be the ones that are starting to think about biodiversity and nature risks and supporting reporting frameworks, said Amy Barnes, London-based head of climate and sustainability strategy at Marsh LLC. Some industry sectors, such as agriculture, are more exposed than others, Ms. Barnes said. “We then get into food and beverage and further up the supply chain,” and the focus extends far beyond that as well, she said. But “many clients aren’t really thinking about nature, and it’s not on their immediate horizon of things to map,” she said. Risk management focus Momentum is shifting, however. In September the Taskforce on Nature-related Financial Disclosures, a market-led initiative funded by […]
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