Why sustainability is a strategic responsibility for VIG
The issue of sustainability has increasingly become the focus of public attention in recent years and has evolved from a little-noticed topic to a strategic necessity for long-term success.
In this blog entry we provide a summary of the reasons why sustainability is a strategic topic for VIG and our motivation behind the VIG 25 Sustainability Programme.
1. Long-term viability
Sustainability has always been an integral aspect of the insurance industry, as commitments made to our customers today are often fulfilled in the very distant future. In that sense, for nearly 200 years sustainability has been part of our heritage, tradition, and more recently our claim “Protecting what matters”. Nowadays, environmental and social aspects have been added to the definition of sustainability, making it multi-dimensional. Failing to comprehensively understand all aspects might threaten our ability to successfully operate as an insurance group in future.
2. Business opportunities and innovation
Sustainability challenges drive innovation and the development of new products and services. We can take an active role in advancing sustainability by mitigating climate risks and providing coverage for emerging risks (e.g., renewable energy projects, green infrastructure). By actively participating, we can thrive on new business opportunities to meet the changing needs of customers and society and contribute to a sustainable future.
3. Investor expectations
Institutional investors and shareholders are increasingly factoring sustainability performance into their investment decisions. In demonstrating our commitment to sustainability, we can attract sustainable investors and maintain strong relationships with our stakeholders. In addition, where VIG acts as an investor, sustainable investments can provide us with long-term financial stability by diversifying our portfolios and reducing the risk of "stranded assets" associated with unsustainable industries.
4. Regulatory urge
Governments and regulatory bodies increasingly recognise the importance of sustainability and ESG factors. By integrating sustainability into all parts of our value chain and decision-making processes early on, our Group can stay ahead of regulatory changes and ensure compliance, while still serving our main stakeholders, employees, investors, shareholders, and the society well.
In conclusion, sustainability is in our view not a choice but a strategic responsibility for our Group. As the world faces unprecedented environmental and social challenges, our industry has a unique opportunity to become a catalyst for change and contribute to a sustainable future.
