MMC highlights ESG in Q1 Earnings Call



At Marsh McLennan, advancing good in the world is important to us. In our view, great companies have to not only do well and deliver for investors, but also do good and make a broader contribution to society. We believe in order to deliver long-term value for shareholders, we also have to be a good employer, a good global citizen, and bring our best to our clients.

We are proud of our track record on ESG and recently released our second Environmental Social and Governance report. Our report highlights the many ways in which we are confronting the most complex ESG challenges of our time, both within our own company and on behalf of clients. We made progress on several ESG initiatives. For example, we are committed to energy transition and achieved a carbon neutral certification in 2021.

We also declared a new goal of being net zero by 2050, with a target of reducing carbon emissions by 50% by 2030. We are committed to inclusion and diversity. We launched our Inclusion and Diversity Center of Excellence, and enhanced our DNI disclosure in the areas of pay equity, workforce representation, and talent flows. And we added Gaye Erkan to our Board of Directors, furthering our commitment to increase gender diversity on our Board.

We are also working across our businesses to help clients address the broad spectrum of complex ESG issues such as climate change, diversity and inclusion, affordable healthcare, cybersecurity, and sustainable investing among others. I want to highlight several recent examples of how we are developing ESG solutions for clients. Marsh launched the New Directors and Officers Liability Insurance Initiative that recognize -- recognizes U.S. based clients with superior ESG frameworks.

Guy Carpenter arrange flood smart re catastrophe bonds for FEMA to secure capital markets-based flood reinsurance coverage for its NFIP program. These bonds help FEMA pay for NFIP claims when disaster strikes. Mercer continues to be a leader in helping firms quantify and address pay equity, as well as diversity and inclusion challenges. As an example, our recently released Stepping Up for Equity Study provides insights on closing the opportunity gap for Black Americans.

Oliver Wyman helped clients pursue commercially viable climate transitions, working with CDP, The World Economic Forum, The United Nations and others to set new agendas and build consensus on the issue of climate change. We are also helping clients develop low carbon business models and manage risks associated with the transition from fossil fuels to renewable energy. As we do our part to accelerate this transition, we recognize that a secure energy supply is crucial for the global economy and society as a whole. This is especially true in the context of today's geopolitical environment.

We believe all communities are best served by working with both operators of clean energy assets and traditional energy companies to make the transition as quickly and smoothly as possible. The work we are doing across all of these ESG related areas has a direct impact on the communities where we live and operate. We are making a difference through disaster mitigation and recovery, promoting healthy societies, and diversity and inclusion. Overall, ESG continues to be an area where we see both a significant growth potential and an opportunity to benefit our clients, colleagues, and communities.

Source: MMC, Dan Glasier, transcript from Q1 2022 Earnings Call


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