"We recognize there are risks to leading by example, but also enormous rewards to being a catalyst for positive change."
I am honored to be part of AIG’s Executive Leadership Team in the newly created role of Executive Vice President, Global Head of Strategy & ESG—which I assumed in February 2022. Creating a leadership position that combines ESG and Strategy reflects the inextricably linked role that ESG will play in AIG’s success as we shape the company for the future. Our Chairman & CEO, Peter Zaffino, recognizes that each component of ESG is intrinsic to AIG’s business strategy and long-term growth.
Whether it is the magnitude of uncertainty around the transition to a net zero carbon future, the measurable economic benefits of greater social inclusion in company results or the stronger reputations of companies with exceptional governance, ESG factors are critical to the financial outcomes of businesses and the socioeconomic outcomes of the societies in which they operate.
The transition to a cleaner energy future is one of the greatest, if not the greatest, economic challenges of the 21st century. While it is easy to perceive the energy transition as a slow-moving problem, one where we have a long runway to find solutions, from an insurance perspective, the runway is getting shorter and the need for solutions is becoming more urgent. Without tackling the earth’s temperature rise and the associated increase in catastrophic risk, the world we live in will become increasingly less livable, and increasingly less insurable. Therefore, being part of the solution on climate change is vital to our strategy as a global insurer.
As you read our 2021 report, one key advancement from our inaugural report in 2020 is the increased level of transparency across all dimensions of ESG.
- In the energy sphere, we have expanded the scope of our reporting to include broader third-party emissions and by estimating emissions from our underwriting portfolio globally. From a sustainability perspective, this Report represents AIG’s second year of aligning with SASB and GRI guidelines, and fourth year of aligning with TCFD.
- Within the DEI sphere, we highlight several new initiatives. AIG has made its EEO-1 report, which details the composition of our workforce, fully available; we know that with disclosure comes accountability and we are taking ongoing steps to improve our metrics. In terms of gender representation, AIG recorded a 0.6 percentage point increase in female colleagues in 2021 to 55% across all employee categories globally.
- Within the governance sphere, we believe reporting on net-zero and social inclusion progress is embedded within good governance practices. AIG’s commitment to a transparent and accountable governance structure is something we believe promotes trust among our many stakeholders.
At AIG, we are mindful of our important role in the industry. We understand that leading in the uncharted waters of the greatest energy transition in history is to lead in the face of many unknown factors, challenging us to bring to bear the expertise and skills that make AIG the global market leader that it is. We recognize there are risks, but also enormous rewards to being a catalyst for positive change.
The enthusiasm from colleagues, clients, distribution partners, shareholders and other stakeholders has been key contributors to AIG’s ESG journey and we thank you for partnering with us thus far. We look forward to ongoing engagement with you as, together, we reimagine what AIG can do for all our stakeholders.