Shielding the C-Suite
Litigation, regulation, and activism around ESG topics are increasing. There is a growing expectation that organizations will be transparent about their ESG programs and risks while working diligently to improve their organizations’ performance. As the global business environment moves toward increased transparency and scrutiny of leaders’ oversight, executives are being held accountable for their organization’s […]
Miriam Wrobel is Senior Managing Director and Global Leader, and Tegan Louw is a Senior Consultant at FTI Consulting. This post is based on their FTI memorandum.
Litigation, regulation, and activism around ESG topics are increasing. There is a growing expectation that organizations will be transparent about their ESG programs and risks while working diligently to improve their organizations’ performance.
As the global business environment moves toward increased transparency and scrutiny of leaders’ oversight, executives are being held accountable for their organization’s ESG strategy and implementation. So, it is unsurprising that ESG factors and governance of key ESG topics are considered by underwriters when underwriting Directors and Officers liability insurance (D&O).[1] In fact, companies that ignore key ESG risks or lack oversight are at risk of not being able to secure favorable terms for D&O insurance in the future or may find themselves uninsured when an incident occurs.[2]
