African Risk Capacity Limited ranked first in ESG for the fourth consecutive year
African Risk Capacity Limited has been awarded first place among its insurance industry peers for ESG The ranking has been awarded by Sustainalytics The rating measures exposure to industry-specific ESG risks JOHANNESBURG, 15 March 2024 – For the fourth year in a row, specialist insurer African Risk Capacity (ARC) has secured the top ranking in the insurance industry for environmental, social and governance (ESG). After an assessment by leading independent research, ratings, and analytics company Sustainalytics, ARC Ltd. was accorded an ESG risk rating of 8.2, indicating an overall negligible risk, and outperforming 302 of its peers in the insurance industry. It also ranks first in the diversified insurance services subindustry category, and 118th in the global universe out of 15 974 as at the last update of 16 February 2024. Sustainalytics provides investors around the world with an assessment of how well companies are managing corporate governance and ESG factors. Companies are scored on a scale of 0 to 100, with 0 indicating the lowest possible risk. An unwavering commitment to sustainability Other highlights from the Sustainalytics report are the fact that ARC Ltd. achieved negligible risk ratings in three categories – business ethics, human capital, and ESG integration. It further received low risk ratings for corporate governance and data privacy and security. ARC Ltd.’s low risk exposure to material ESG issues demonstrates a strong risk management ethos and robust leadership. The company has an unwavering commitment to sustainability, social responsibility, and ethical governance – a fact that has cemented its partnerships with organisations that share its vision for Africa. “Economic, social and environmental sustainability has become crucial in the world today, and we are proud of our consistent top ranking by Sustainalytics,” says CEO of ARC Ltd. Lesley Ndlovu. Adds COO Ange Chitate, who heads up ESG at the company: “This achievement reflects our unwavering commitment to ESG principles. Our team has been instrumental in integrating sustainable practices into every facet of our operations and our No. 1 position is due to their hard work and dedication.” Promoting sustainable development When rating companies, Sustainalytics scrutinises business practices and policies, and also pays attention to critical factors, such as business model, financial strength, geography and incident history. ARC Ltd. consistently performs above its peers. The company is also a leader in ESG in Africa’s insurance sector and a signatory of the Nairobi Declaration on Climate Change, which urges African insurers to integrate ESG into their business models, in alignment with the goals envisioned by the Net Zero Insurance Alliance. “The insurance industry has an important role in promoting sustainable development in Africa and we continue to advocate for ESG integration on the continent,” concludes Ndlovu.
African Risk Capacity Limited awarded top ESG score in the insurance industry
JOHANNESBURG, 16 JANUARY 2023 – African Risk Capacity (ARC) Limited has received the global insurance industry’s top overall environmental, social and governance (ESG) scores. Conducted by Sustainalytics, a leading ESG research, ratings and data firm, the evaluation is a comprehensive assessment of an organisation’s preparedness to meet future risks and opportunities linked to ESG factors, such as climate change, regulatory risk and reputational issues, on a scale of 0 to 100, with 0 indicating the lowest risk. ARC Ltd.’s ESG score was calculated following an independent audit of the company’s business practices and policies. Improving from low risk last year at 10.2 to negligible risk this year at 5.7, Africa’s premier institution for disaster financing edges up two positions to claim top spot in the global insurance sector ESG risk rating. ARC Ltd.’s ESG risk rating is now the lowest among its global peers. ARC Ltd. also retained its leadership position in the Diversified Insurance sector this year, with the lowest exposure among its peers (24.0) and strongest management score (80.3) in terms of how well it manages its ESG programmes, practices and policies. In particular, ARC Ltd. scored negligible risk ratings in terms of Data Privacy and Security, Corporate Governance, Human Capital, Business Ethics and ESG Integration. ARC Ltd. Chief Operations Officer Ange Chitate says the organisation’s top ESG score in the insurance industry is reflective of the leadership role it plays in helping to mitigate and manage the impact of climate change on the African continent. “This independent validation of our commitment to sound ESG practices within the business bolsters our vision to cover the continent’s most vulnerable communities facing the vagaries of climate change events. We achieve this through partnerships with like-minded organisations that share our vision and commitment to sustainable ESG practices,” says Chitate. As a leader in ESG among stakeholders in Africa’s insurance sector, ARC Ltd. is a signatory and driver of the Nairobi Declaration, aimed at committing the continent’s insurers to better integrate ESG into their business models, in alignment with the goals envisioned by the Net- Zero Insurance Alliance. “We are determined to play an active role in promoting the economic, social and environmental sustainability that has become so crucial in the world today. All stakeholders within the African insurance industry – from risk managers to insurers and investors – have a critical part to play in promoting sustainable development on the continent,” says ARC Ltd. CEO Lesley Ndlovu. “We encourage others in the industry to take the initial step of becoming a signatory of the Nairobi Declaration, but also advise that it represents just the first footfall on a path towards numerous different activities and accommodations like those illustrated in our independent ESG risk assessment by Sustainalytics. We can all play our part,” Ndlovu concludes.