Discussions about environmental, social and governance (ESG) programs exploded in 2021, as a number of social movements significantly raised awareness of diversity, equity and inclusion (DEI), and government and regulatory agencies increased scrutiny of climate risk.

Industry leaders have well-established ESG programs and reporting. Current legal considerations, as well as expected changes to regulatory frameworks, should compel the rest of the industry to develop and improve similar programs. Recent comments from the Federal Reserve, the Security and Exchange Commission, and the Federal Insurance Office imply that climate change, in particular, is likely to quickly become a larger part of the lending framework, compliance regulations and insurance market. With skyrocketing insurance claims and premiums from extreme weather, future insurance pricing is at risk. Even the unthinkable — denial of insurance for certain high-risk events — may be on the horizon for commercial r