Marsh & McLennan Companies, Inc. (NYSE: MMC) disclosed that it has commenced new directors and officers liability (D&O) insurance initiative. This new project will distinguish clients based in the US with exceptional environmental, social, and governance (ESG) frameworks. MMC revealed that its clients have experienced one of the toughest D&O markets in the last few decades.
MMC believed that the risk environment is only escalating, particularly concerning ESG issues like climate change and diversity. The decision to launch a D&O event came after an increase in ESG-related stakeholder involvement and lawsuits, as well as an ever-changing global regulatory environment. It also illustrates how investing in a robust ESG project can positively affect organizations’ bottom lines.
D&O Insurance Initiative
MMC uncovered that the new initiative will allow volunteered Marsh clients to interact with select international law firms including Norton Rose Fulbright and Orrick, Herrington & Sutcliffe LLP to autonomously review, assess, and, in some cases, strengthen their ESG frameworks. The firm revealed that by collaborating with these select law firms, the firm is guaranteeing that the clients have access to prominent independent ESG expertise that can help validate and improve their ESG efforts.
Furthermore, Marsh is delighted to launch D&O coverage enhancements that identify businesses taking a preemptive methodology to deal with the risks linked with ESG, including the shift to a low-carbon economy. Marsh is trying to imitate this project in London and other parts of the world over the coming months.