Marsh McLennan has released its first ever environmental, social and governance (ESG) report, highlighting examples of the company’s work to advance ESG priorities in 2019 and 2020 as well as its targets for the future.
- Commitment to reduce carbon emissions by 15 percent below 2019 levels by 2025
- Pledges to be carbon neutral in 2021
- Advocates for workforce diversity, equity and inclusion
- Vows to make transparent and consistent ESG disclosures
The report, titled “Changing What’s Possible”, highlights Marsh McLennan’s commitments to reduce its carbon emissions by 15 percent below 2019 levels by year-end 2025, lead the charge on diversity, equity and inclusion (DEI), and continue to embed ESG considerations into its strategy to benefit all stakeholders.
“We recognise the opportunity – and the obligation – we have to model the behaviours we want to see in the world and to be good stewards of the environment and the societies in which we live. We’re committed to the principle of responsible capitalism,” Dan Glaser, president and CEO of Marsh McLennan, writes in the report.
Glaser added that “one of the meaningful ways we’ll mark our company’s 150th anniversary this year is with a pledge to be carbon neutral in 2021”. Marsh McLennan will achieve this through the reduction of greenhouse gas emissions in its operations and the purchase of verifiable offsets.
Marsh McLennan first announced its two commitments of being carbon neutral in 2021 and reducing carbon emissions by 15 percent by 2025 in January.
In the report, Marsh McLennan voluntarily discloses its externally verified annual carbon data (see image). Scope one shows emissions stemming directly from its operations, scope two are emissions indirectly purchased by the firm to power its 750 offices and scope three emissions include all other indirect emissions from sources not owned or controlled by Marsh McLennan but which indirectly impact its value chain.
Last year insurance broking subsidiary Marsh’s Global Energy & Power Group launched an integrated global renewable energy practice to support the transition to a low-carbon economy.
Glaser also highlighted the launch in 2020 of the “Leading the Change” initiative to reinforce the tenet of rejecting racism, bigotry and discrimination in all their forms.
“In our offices and in our work, we serve the fundamental principles of human dignity, equality, community and mutual respect. Creating a more just and compassionate world is ongoing work. Change is up to all of us,” Glaser said.
Employee benefits and investment consulting firm Mercer published several papers on DEI strategies in the workplace, while management consultancy Oliver Wyman supported clients as they managed the challenges of Covid-19 through its proprietary Pandemic Navigator suite of models.
On the governance issue, the report noted that Marsh McLennan appointed its fifth consecutive diverse candidate, Jane Lute, to its board last year. Of its directors, three are women and three are men who are racially or ethnically diverse.
In addition, Glaser is a member of the 30% Club, a global campaign to increase gender diversity at board and senior management levels.
In 2020, Oliver Wyman started a pro bono project with the 30% Club focused on developing a new global strategy. Over an eight-week period, Oliver Wyman colleagues engaged with more than 25 of the campaign’s leading members to collaboratively develop a clear global mission and strategy for the campaign.
Marsh McLennan has also implemented enterprise-wide client engagement principles that support sustainable development goals in vital areas such as affordable healthcare, gender equality and climate-change mitigation.
The report highlights steps taken across Marsh McLennan’s four businesses to promote sustainable development, economic inclusivity and public health.
Marsh McLennan said the purpose of the inaugural report is to be more transparent about how its ESG philosophy drives its risk management and decision-making for stakeholders who value ESG considerations.
“We believe transparent and consistent disclosure enables better-informed business and investment decisions,” the report states.