To better navigate the global patchwork of ESG regulation, multinational businesses appear to be adhering to regulations set by one particular legislative regime, and applying that approach to all other jurisdictions they operate in. To do this, businesses must decide which regulations best fit their own company values, demonstrating how businesses are now compelled to take political stances like never before.
26% of business executives feel unprepared to anticipate and respond to ESG risks.
29% of business executives in Canada feel unprepared to deal with ESG, a higher percentage than executives in the UK (23%), US (27%) and Singapore (23%).
Disregarding or contesting legislation is by no means a workable solution for all businesses as smaller firms simply don’t have the financial and legal firepower to do this. Consequently, smaller businesses may be forced into complying with regulations that do not necessarily align with their values, just to maintain growth.
However, it would be a mistake to think that all future threats are easy to anticipate, as the regulatory landscape is increasingly volatile and unpredictable. Our data shows businesses progressively feel unprepared to anticipate and respond to ESG risks, and while the challenges caused by the global patchwork of regulation are particularly felt by multinational businesses, ultimately businesses of all sizes are affected. Insurance, and in particular a global programme of coverage can undoubtedly play a part in providing businesses with peace of mind as they navigate the minefield of ESG risks.
Global coverage solutions must always be carefully structured to meet the specific requirements of a business. It is important that they are adequately covered in all the jurisdictions in which they are present, and insurance policies must be able to respond to local regulations, requirements and market practice. Not doing so could hinder their international growth and expansion.”