Helping our clients build and evaluate ESG programs ESG Pulse Check ESG Risk Rating ESG reporting is top-of-mind for leaders. However, with multiple ESG frameworks Embedding ESG into the business is increasingly a source of competitive and quickly developing regulations, it can be unclear where to begin. To address advantage for the companies that do it right. Marsh developed the ESG Risk this, Mercer and Marsh developed the ESG Pulse Check Assessment: for no Rating (ERR) tool to help clients self-assess the maturity of ESG within their additional, cost companies can evaluate where their ESG program stands today organizations. This free resource assists companies in measuring, managing, and what areas to focus on going forward. Unlike other assessments, this quick and communicating ESG risks. Clients can use the results to identify their most 12-question survey takes less than 10 minutes to complete. Helpful feedback and a critical climate and sustainability related risks and opportunities. custom-built plan for improvement are generated immediately upon completion, which help define a clear strategy. The output one-page “scorecard” based on a set of quantitative questions across Results include: 18 core ESG themes. The rating received differentiates between more than 60 industries, recognizing the different relative importance of themes across industries. • The organization’s overall ESG program score The scorecard provides: • Gaps in ESG program and planning 1. An overall rating (out of 10) • Key recommendations for improvement across each category 2. A component rating for E, S and G 3. Scores across 19 themes 4. Recommendations to consider across controls, reporting and resilience Type of clients who use this: corporate and risk management clients looking to better understand or articulate their ESG position/journey Research focus: ESG performance and workers’ compensation Marsh, with input from Mercer and Oliver Wyman colleagues, has begun to investigate possible correlations between ESG performance and risk performance using the granular data captured through our ESG Risk Rating tool. Building blocks of ESG Uncovering these relationships is expected to grow our understanding of Small and medium enterprises (SMEs) are increasingly required to develop and some of the additional levers that influence loss outcomes. grow their ESG strategy. Smaller organizations may not have the budgets to undertake highly detailed assessments, so Marsh Advisory created the ESG When looking at US workers’ compensation data we found a strong Building Blocks tool, which allows clients to undertake high-impact, low-cost correlation between organizations with higher social scores (in the ERR options that can help them on their ESG journey. categories of social, social (controls), community and vitality, dignity and The Building Blocks are designed to be an end-to-end ESG service allowing clients to equality) experiencing fewer, less severe workers’ compensation losses. tell their ESG story. The tool breaks ESG down into modular activities which include ESG Strategy Builder, ESG Reporting framework and ESG Risk Register framework. Overview Environment Social Governance Appendix 2022 ESG REPORT 62