A study of integration of ESG and CSR in Select Public Sector Insurance Companies

The growing emphasis on global sustainability standards is prompting insurance companies to combine Environmental, Social, and Governance (ESG) goals with their Corporate Social Responsibility (CSR) initiatives. In India, the insurance companies have long term commitment towards social welfare in areas such as healthcare, education, increasing financial literacy, rural development and disaster management. One of the milestone of the Securities and Exchange Board on India is Business Responsibility and Sustainability Reporting (BRSR). SEBI has made mandatory for top 1000 listed companies to prepare BRSR, including their performance on Environment, Social and Governance (ESG). This reporting has made organisations more accountable, systematic and results oriented sustainability approaches.

The present study explores the emerging practices with respect to reporting of ESG of two public insurers in India i.e. New India Assurance Co. (NIA) and the General Insurance Corporation of India (GIC). These two companies are being selected as there are preparing and integrating ESG in their reports as per CSR framework. The secondary data collected through the annual reports, BRSR, CSR reports, regulatory circulars from IRDAI, the study reveals various significant developments. These includes greater emphasis on climate associated risks, more transparency in reporting and awareness on providing more welfare facilities to the society. However, difficulties such as inadequate knowledge of ESG and unavailability of specialized professional with context to reporting of ESG, disjointed data management process, frequently changing disclosure standards still needs attention and nees to  be addressed.

The study proposes theoretical framework for incorporating ESG and CSR functions and identifies important factors affecting sustainability in public sector insurance companies. The study proposes insights for regulators and industry leaders seeking to enhance ESG integration and deliver long term sustainability outcome in insurance industry.