Canadian ICMIF member Mutual Fire Insurance has published its inaugural ESG and Sustainability report after what it says was a two-year journey to learn and understand environmental, social, and governance (ESG) initiatives. The journey started with a small committee learning all about ESG which has since led to the organisation approaching business in a completely new way.

The purpose of the report is to provide a comprehensive overview of Mutual Fire Insurance’s commitment to ESG initiatives and to inform stakeholders about the company’s sustainable practices, its progress in addressing ESG issues, and its future plans and goals.

Through the report, Mutual Fire Insurance is looking to demonstrate its dedication to responsible business practices, transparency, and long-term sustainability. The report showcases the mutual insurer’s understanding of the importance of ESG factors in driving a positive social and environmental impact, as well as enhancing the company’s overall performance and resilience.

Speaking about his organisation’s ESG and sustainability initiatives, Darin Lord Nessel, President and CEO, Mutual Fire Insurance said: “We chose to take action that creates an impact to preserve our planet, better our economy, form a just society, and normalise a culture working together for a common good. To embrace the possible, we have instituted an ESG & Purpose Framework that articulates Mutual Fire Insurance’s purpose statement – Trust & Protection for a Sustainable Tomorrow. This framework outlines our company-wide approach to act with purpose through ESG within our business practices and incorporates an ongoing dialogue with internal and external stakeholders.”

He continued: “We have segmented the very meaning of our purpose statement into key pillars: ESG-centric business practices, partners, community and philanthropy, employee wellness, accountability and responsible leadership, and investments. Collectively, these pillars serve as our blueprint to the 17 Sustainable Development Goals (SDGs) in creating a better world. The decision to align with four of the United Nations Sustainable Development Goals serves a choice aimed at fortifying our organisation’s resilience and perpetuating a culture of impactful contributions.”

New approaches adopted over the last two years include:

Environmental stewardship

Mutual Fire Insurance aims to minimise environmental impact across the full life cycle of the company building, products, investment portfolio, and corporate operations. This principle recognises the effects of climate change and across the business sustainable initiatives are being sought which will deliver efficiency, value, and health for business, people, and community.

Social responsibility

For Mutual Fire Insurance, people are at the heart of any business: customers, directors, staff, leadership, vendors and partners. Social responsibility is showcased through the company’s culture, community engagement, and diversity, equity, and inclusion initiatives.

Governance

The company seeks to ensure it has a sound approach to the business complying with all applicable laws, rules, regulations, and policies. Governance values of accountability and transparency are key.

Mutual Fire Insurance says it firmly believes in the above initiatives and, in fact, ESG is simply an extension of its mutual values; a structure for it to follow.

United Nations Sustainable Development Goals

Globally, the United Nations developed 17 Sustainable Development Goals (SDGs) which aim to confront the biggest environmental and social issues affecting our world today.

Mutual Fire Insurance supports every Sustainable Development Goal and has selected four to champion; four goals where it, as a company, can deploy its resources to make a significant impact.

Goal 2: End hunger, achieve food security and improved nutrition, and promote sustainable agriculture
Goal 3: Ensure healthy lives and promote well-being for all at all ages
Goal 11: Make cities and human settlements inclusive, safe, resilient, and sustainable
Goal 13: Climate Action

Measuring ESG and SDGs

To succeed with its ESG and SDG goals, Mutual Fire Insurance decided it first needed to measure. The International Cooperative and Mutual Insurance Federation (ICMIF) and the Swiss Re Institute developed the ICMIF–calibrated Insurance Sustainable Development Goal (iSDG) Calculator. The iSDG calculator is the first tool of its kind to measure sustainability impact against the insurance SDGs. The information comprising the score is based on two main criteria: insurance portfolios (ie underwriting) and business operations (ie investments).

Mutual Fire Insurance was one of the first adopters of the Insurance Sustainable Development Goal Calculator. It achieved an impressive first score of 4.65 on a scale of -10 to +10 in 2023. This score indicates Mutual Fire Insurance is 46.5% of the way towards achieving the insurance SDGs as set out by the United Nations.

With this measure Mutual Fire Insurance believes it can gain a stronger understanding of its book of business as it relates to sustainability. It makes the intangibility of these big goals tangible.

Mutual Fire Insurance says its ESG journey will result in changes throughout the business, though it will always be guided by its purpose: Trust and protection for a sustainable tomorrow.

The report

Please click on this link to download the Mutual Fire Insurance 2023 ESG and Sustainability Report.