As world leaders met in Baku, Azerbaijan for COP 29, insurance industry leaders sent their best negotiators to convince Africa governments to develop blueprints that require public and private sector entities to embrace insurance as a major driver to the adoption of environmental, social and governance (ESG) guidelines.
As insurance sector players, we have a duty to implement practical measures that affirm our contribution to reducing emissions at an operational level. These efforts should be well-documented and, as a best practice, shared transparently with stakeholders through periodic sustainability reports, reflecting our progress and accountability.
We are also to take an active interest in our customers’ operations to affirm the presence of sustainability practices and policies. To promote this agenda, insurance companies have signed several commitments to promote sustainable practices.
This standpoint is further supported by the UN Environment Programme on finance Initiatives, which asserts that there is a need for insurers to identify market gaps and develop lasting solutions that solve not only customer problems but also provide services at an affordable price, strengthening the industry’s contribution to resilient, inclusive, and sustainable communities and economies.
Insurers must engage in continuous innovation to remain relevant beyond their business including activities in the insurance value chain— stakeholder interactions and engagements in developing, implementing and enhancing sustainability goals. Additionally, insurers must provide environmentally conscious solutions to their customers.
Since COP 15, the insurance sector has seen a significant shift towards sustainability with boards approving policies and investments aimed at reducing energy and water consumption within institutional operations. These measures have been complemented by initiatives to enhance natural ventilation and daylight utilisation in office spaces, fostering environmentally conscious practices across the industry.
Companies engaging in sustainable insurance must ensure that their products align with sustainability principles, are fit for purpose, and adapt to evolving market needs.
Achieving this requires ongoing policy engagement and collaboration between the private and public sectors to create and build a sustainable insurance business in Kenya and across the globe.
The writer is the Head of Strategy and Investor Relations at CIC Group.
