Navigating Towards A Sustainable Future: Understanding Risk, Resilience and Sustainability

I hope this message finds you well and in good health.

Risk, in its simplest form, is uncertainty that matters, where there's a possibility of threats and opportunities arising in the future. Furthermore, when coupled with a pandemic like the current one and subsequent lockdowns or movement control orders in various countries, this risk has led to both adverse outcomes and beneficial results.

For instance, we've witnessed negative consequences such as health deterioration, fatalities, reduced production, inflation, or economic slowdown, alongside positive outcomes such as improved readiness, resilience, or recovery, reduced accident frequency, and enhanced profitability.

Now, let's delve deeper into another pertinent topic - environmental and social aspects. We often hear terms like Sustainability, ESG (Environmental, Social, Governance), EES (Economic, Environmental, Social), and Climate Change. But what do these terms really signify?

Environmental issues encompass pollution, waste, deforestation, greenhouse gas emissions (e.g., CO2), global warming, melting ice sheets, and rising sea levels. On the other hand, social issues include poverty, hunger, inequalities, and health and well-being.

Sustainability, with its key components of ESG, is a widely discussed topic globally. The ESG illustration above is based on complementary aspects of learning based on several sources. It involves actions and goals implemented by various entities, including the UN, governments, regulators, associations, and companies, to ensure long-term value and resilience across economic, environmental, and social spheres.

The Sustainable Development Goals

In our pursuit towards sustainability, we aim to strengthen resilience, accelerate recovery, foster innovation, and manage ESG-related threats and opportunities effectively. Our Risk Management Working Committee is available for any queries or concerns regarding relevant risk matters.

As part of our sustainability initiatives, we have undertaken several key actions, such as integrating climate-related risks into our enterprise risk management, refraining from insuring or investing in new coal-fired power plants, implementing End-of-Life- Vehicle initiatives, and operating in an environmentally friendly office.

Looking ahead, the Sustainability Steering Committee has identified three main workstreams to implement respective key focused ESG areas and initiatives for the short, medium, and long terms. These initiatives are meant to encourage active participation and contribution by relevant stakeholders.

In closing, I'd like to share a quote by the late Kofi Annan, the Former Secretary-General of the UN:

Let's work together towards creating a better, more sustainable world.

Mr Hakim Razip
Chief Risk Officer
Berjaya Sompo Insurance Berhad