According to a recent survey, 55 per cent of insurers said they faced mounting ESG pressure from stakeholders. The survey was conducted among 480 senior executives from 13 countries revealed that around 28 per cent of the insurance executives reported the ESG performance of their company was poor.

Around 65 per cent of insurance executives felt that poor ESG performance had a significant impact on their organisation, compared to 59 per cent of executives across all companies polled.

Kirsty Rogers, global head of ESG at DWF, said: “The clear message from our survey is that companies not only understand the need to have a strategy for ESG but that without one, there are clear long-term risks and liabilities. These costs could include damage done to their business to the point of affecting their licence to operate. Whilst there is a cost to transitioning to a more sustainable business, it is a necessary investment for people, the planet and ultimately profit.

She said, "It is clearer than ever that businesses have a huge role in driving the global transition, while also improving social issues and driving progress on governance, and insurance companies understand this. To achieve their goals they need a clear, ambitious and transparent ESG strategy.”

Only 30% of insurance executives said they had thoroughly evaluated the ethical and legal consequences of ESG disclosure and obligations in the survey, but the percentage was somewhat higher at 35% across all industries.

Over the last two years, environmental, social, and governance (ESG) has been a hot subject in the investing and insurance worlds. Steel City Re recently said that firms that embrace ESG and reputational risk measures have witnessed near-immediate stock price effects.

According to the survey, individuals who used these techniques saw their stock values rise by 5% over market value in only two weeks, with the premium nearly double for those who discussed and confirmed their ideas publicly.