African Risk Capacity Limited has been awarded first place among its insurance industry peers for ESG

• The ranking has been awarded by Sustainalytics
• The rating measures exposure to industry-specific ESG risks

For the fourth year in a row, specialist insurer African Risk Capacity (ARC) has secured the top ranking in the insurance industry for environmental, social and governance (ESG).

After an assessment by leading independent research, ratings, and analytics company Sustainalytics, ARC Ltd. was accorded an ESG risk rating of 8.2, indicating an overall negligible risk, and outperforming 302 of its peers in the insurance industry. It also ranks first in the diversified insurance services subindustry category, and 118th in the global universe out of 15 974 as at the last update of 16 February 2024.

Sustainalytics provides investors around the world with an assessment of how well companies are managing corporate governance and ESG factors. Companies are scored on a scale of 0 to 100, with 0 indicating the lowest possible risk.

An unwavering commitment to sustainability

Other highlights from the Sustainalytics report are the fact that ARC Ltd. achieved negligible risk ratings in three categories – business ethics, human capital, and ESG integration. It further received low risk ratings for corporate governance and data privacy and security.

ARC Ltd.’s low risk exposure to material ESG issues demonstrates a strong risk management ethos and robust leadership. The company has an unwavering commitment to sustainability, social responsibility, and ethical governance – a fact that has cemented its partnerships with organisations that share its vision for Africa.

“Economic, social and environmental sustainability has become crucial in the world today, and we are proud of our consistent top ranking by Sustainalytics,” says CEO of ARC Ltd. Lesley Ndlovu.

Adds COO Ange Chitate, who heads up ESG at the company: “This achievement reflects our unwavering commitment to ESG principles. Our team has been instrumental in integrating sustainable practices into every facet of our operations and our No. 1 position is due to their hard work and dedication.”

Promoting sustainable development

When rating companies, Sustainalytics scrutinises business practices and policies, and also pays attention to critical factors, such as business model, financial strength, geography and incident history. ARC Ltd. consistently performs above its peers.

The company is also a leader in ESG in Africa’s insurance sector and a signatory of the Nairobi Declaration on Climate Change, which urges African insurers to integrate ESG into their business models, in alignment with the goals envisioned by the Net Zero Insurance Alliance.

“The insurance industry has an important role in promoting sustainable development in Africa and we continue to advocate for ESG integration on the continent,” concludes Ndlovu.