Farmers Insurance Exchange has announced that it has become the first US-based insurer to sign on to the United Nations Environment Programme Finance Initiative’s Principles for Sustainable Insurance (PSI), an international framework for the insurance industry to address environmental, social and governance risks. Farmers joins more than 200 insurance organizations worldwide that have signed on to the principles since they were introduced in 2012.
“Farmers is committed to operating in a way that positively impacts our customers, our employees and communities by incorporating environmental, social and governance (ESG) considerations into our business,” said Jeff Dailey, CEO of Farmers Group. “We are honored to become the first US-based insurer to sign the Principles for Sustainable Insurance (PSI) and hope to amplify the impact of our efforts by inspiring others in the insurance industry to follow our example.”
PSI signatories are called to:
- Embed ESG issues relevant to the insurance business into decision-making
- Commit to working with clients and business partners to raise awareness of ESG issues, manage risk and develop solutions
- Agree to work with governments, regulators and other stakeholders to promote action on ESG issues
- Demonstrate accountability and transparency by regularly making public disclosures on progress on implementing the PSI
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Farmers has been involved in a variety of efforts to address ESG issues for some time, including: making socially responsible investments in underserved communities through IMPACT Community Capital, investing in an NGO-led fund that helps homeowners recover from disasters, transitioning to a fully hybrid and electric vehicle fleet, switching to paperless billing processes, and embracing flexible work options for employees.
By signing the PSI, Farmers intends to expand on those efforts to make more meaningful impacts, the company said.
“Through its commitment to implement the Principles for Sustainable Insurance, Farmers Insurance Exchange is demonstrating leadership, raising its ambition, and engaging with key stakeholders to tackle the most pressing sustainability challenges and to seize the opportunities of a sustainable economy,” said Butch Bacani, who leads the PSI at the UN Environment Programme. “We look forward to more US insurers joining the PSI and becoming part of the solution. The time for decisive sustainability action is now.”