The environmental, social and governance risks (ESG risks) of a company include external risks related to the company's exposure to environmental, societal and governance-related impacts.
As an increasing amount of reporting requirements arises by means of for instance the ESRS (European Sustainability Reporting Standards) taking effect from January 1st, 2024, reporting the ESG related efforts and key figures will be required for many companies.
Also, quantifying financial impacts from physical and transition risk (which in particular depends on respectively climate change and societal behavior) will become essential for many companies.
Nordisk Aktuarservice assists corporations in their pursuit of quantifying and understanding the ESG risks to which they are exposed. Most traditional quantitative risk management methods do not sufficiently take ESG risks into account - even though ESG risks are financial by nature.
Taking this into consideration, it will be beneficial for many companies to use additional ESG risk models to obtain a more complete basis for an efficient and adequate risk management.
Understanding ESG risks sets the foundation for more efficient and proactive ERM (enterprise risk management) within the company and leads to a better prioritization of resources and efforts.
We are experts in quantifying risks and financial impacts by implementing statistical models and scenario-based calculations.
ESRS sets new standards for reporting and dealing with ESG risks for corporations operating within the European Union and will provide investors with more standardized information regarding the sustainability risks associated with their investments. We guide corporations safely through the implementation of ESRS.
Additionally, we assist insurance companies with inclusion of climate change risks in the ORSA (Own Risk and Solvency Assessment) - for instance by means of visualization tools and tangible scenario analyses. Creating climate change risk scenarios is already a part of the ORSA and the same techniques can be used for ESG reporting.
Data is key to understanding risks. Establishing a solid framework for efficient and adequate risk modelling requires knowledge about collecting and storing data in a controlled and comprehensible manner. We assist with and provide tailored solutions for data collection and data management to ease the risk modelling processes.
What we offer
Transparent and quantitative ESG risk models
Assistance and guidance with ESRS
Solutions for gaining more insight from data
Connecting ESG to ERM