ESG integration is a strategy. All companies should adopt it. How are insurers responding to these challenges? What are the impacts for policyholders? The environmental factor is undoubtedly the most visible. Faced with an increasing risk of loss from natural disasters, risk takers have an interest in promoting sustainable practices and encouraging green projects. Already subject to increased management regulations, insurers plan to develop specific products for companies and individuals committed to the energy transition. The social factor covers employee health and safety, respect for human rights, diversity and equity. Insurers are committed to providing a service that is accessible to all. They intervene by offering advice and training. They encourage companies to adopt safer and more responsible practices. The factor of corporate governance is inseparable from sustainable development. It involves adopting a set of rules to balance power among all stakeholders. Conduct its activities in an ethical and transparent manner, in compliance with the regulations in force. Insurers are also concerned about their corporate governance and the activities of their clients. At present, ESG factors impact several types of risk: Property Damage Policies

• Damage = increase in claims = increase in insurance premiums

Health Benefits

• Pollution + stress = longer life = health of the population affected = impact on the cost of benefits

Customer Credit Risk

• Impact of natural disasters = loss of business = insolvency

The insurance industry has a role to play in helping its clients make the necessary changes. Today, if a customer adopts a virtuous approach, it does not affect their premium. Some insurers are taking a selective approach in choosing which companies they will continue to cover. The transition involves understanding the risks that customers face. Insurers can then modify risk profiles and develop solutions that support the steps taken. Some insurers are taking a selective approach in choosing which companies they will continue to cover. The industry plans to reward good ESG practices in pricing via a rating system. Valid also for insurers. Marsh has developed the ESG Risk Rating, a tool to measure the environmental, social and governance performance of companies. The challenges are numerous, the emerging risks affect clients and insurers. The solutions will be found along a common path. Our core business:

• Accompanying our clients in the facing risks
• Acting on threats to turn them into opportunities

The transition remains to be built, together.