ESG In Action: Gallagher Bassett's Commitment to Sustainable Practices

Choosing a partner in the insurance industry is more than a transaction; it's a statement of values at a time when an organisation’s Environmental, Social and Governance (ESG) is a business imperative.

The shift in the New Zealand business landscape, marked by the bold legislative step taken in 2021 to mandate ESG reporting for some large financial market participants, saw a prioritising and necessary re-evaluation of business practices. This greater focus on ESG has resulted in some impressive initiatives and practices for businesses holistically, and insurers have been at the forefront of this transformation.

As the need to deliver on ESG increases, insurers need partners who share their commitment, making the selection of a partner a strategic decision. By aligning with partners like Gallagher Bassett, where ESG values run deep and the commitment towards delivering upon them is ingrained from the top-down, insurers not only ensure operational synergy but also contribute to a global movement towards sustainable and responsible business practices. This partnership is about more than operational capability, it’s about shared values, shared risks and shared success at a time when organisations must make a positive impact.

Gallagher Bassett’s Carbon Reduction Initiatives

We are committed to sustainable business practices which support our goal of safeguarding the future, having set a goal of Net Zero carbon emissions in our direct operations (Scope 1 and Scope 2) by 2050. We have focused on making the transition to low-carbon practices, both within New Zealand and everywhere we operate globally. We are also committed to serving clients who are dealing with the effects of climate change.

As a professional services firm without extensive physical operations, our primary sources of carbon emissions are our offices, most of which are controlled by third-party landlords, employee commuting, and business travel. Recognising that the most significant reductions in our carbon footprint will come from the availability of renewable energy in our offices or technology advancements such as “green” aviation fuel, we are exploring realistic and sustainable ways in which we can directly impact our corporate carbon footprint.

Beyond initiatives at the corporate level, we believe it is important for us to educate and empower our employees to take action individually. Below are several of our initiatives at the corporate level as well as those meant to encourage action at the individual level:

• We continue to move our offices to a hybrid work environment, which allows us to re-evaluate our office space and reduce employee commuting.
  
  
• Our business has been focused on working with landlords to obtain renewable energy for our offices.
  
  
• We are raising awareness among our employees, providing them with information on how they can contribute to environmental sustainability and promoting internal challenges to reduce carbon emissions both at work and at home. (Please see our Sustainability Report for examples of our initiatives in this area.)
  
  

Governance, Strategy and Risk Management

We take the risks and opportunities associated with climate change and the transition to a low-carbon economy seriously. Our management-level Enterprise Risk Management (ERM) Committee identifies climate change-related risks facing the company, along with potential mitigation strategies. These are reviewed and discussed with senior management and the Risk and Compliance Committee of the Board of Directors. Please see “Board’s Role in Risk Oversight” and “Environmental, Social and Governance (ESG) Oversight and Activities” in our most recently filed Proxy Statement for more information.

We also have a management-level committee led by our Global Chief Ethics Officer, consisting of employees from across our global businesses and corporate departments, with responsibility for coordinating and communicating the company’s ESG initiatives and ESG-related client advisory opportunities. Management reports on these matters to the Risk and Compliance Committee and full Board of Directors, as appropriate.

A shared belief in responsible business

We firmly believe in the power of recognising and celebrating those who lead the way in ESG. This belief stems from our understanding that by showcasing and honouring outstanding achievements, we can inspire others to follow suit. That’s why Gallagher Bassett was the proud sponsor of the ANZIIF Excellent in Environment, Social and Governance Change Award. Responsible business practices create a positive impact on our world and we are committed to fostering a culture of sustainability and responsibility business practices, both within Gallagher Bassett and in the industry at large.

Procurement with purpose

Sustainability guides all procurement decision-making to ensure we work with vendors who are certified as being environmentally friendly by reducing emissions through solid waste and fleet management as well as sustainable purchasing choices.

Sustainability in action

We have a strong set of values shared by all people at Gallagher Bassett and we align our social initiative with these principles. A set of 25 core tenets called “The Gallagher Way” shape our culture of ethics and service within both our work in the insurance industry and additional efforts to support the communities we serve.

In 2021, we introduced the Sustainability Challenge, a 200-day initiative that showcased our commitment to environmental responsibility. Gallagher Bassett employees from around the world participated in this challenge which focused on improving community sustainability. The outcomes were remarkable including a significant increase in recycling in which 63,000 items were recycled in one month alone, and volunteer initiatives that saw 200 native trees planted during Conservation Week.

Socially responsible inclusion with the Special Olympics

Tenet Five or “The Gallagher Way” affirms the equal importance of every member of a community and we strive to prioritise diversity and inclusion. In following this principle, we are proud to be a multi-year, global platinum partner of the Special Olympics International as well as an official sponsor of the Special Olympics Sport and Coaching program which promotes inclusion, acceptance and equality within our communities. In total, we contribute approximately $1.5 million per year to this cause.

An employee program that is meaningful and drives a positive impact is our “Your Cause” platform that allows Gallagher Bassett people to donate to their choice of over one million registered not-for-profits, including Special Olympics. As an organisation, Gallagher Bassett matches their donation and encourages the use of each employee’s two annual paid Volunteer Days. For many, that means volunteering with the Special Olympics to mentor athletes, help with events and fundraise.

We’re proud to play a role in making the Special Olympics International a huge success, promoting inclusiveness in sports for people of all abilities and helping to positively shift societal attitudes around people living with a disability.

For insurers navigating the ESG landscape, partnering with organisations like Gallagher Bassett is more than a strategic decision, it’s a shared commitment to values that extend beyond the bottom line. Get in contact to learn how partnership with Gallagher Bassett goes beyond operational capability to support positive ESG practice and impact.