In a recent episode of Sustainability Unplugged, Olive Gaea’s Co-founder and CMO, Jessica Scopacasa, sat down with Racha Mukaiyed, Managing Director at Howden, to discuss what it really takes to embed ESG into the heart of insurance.
As climate risks intensify and regulatory landscapes evolve, the insurance industry is uniquely positioned to shape a more sustainable future. But it requires rethinking long-standing definitions of risk, resilience, and responsibility.
“Sustainability isn’t a tick-box exercise—it’s a mindset, a purpose-driven journey that starts with culture, demands authenticity, and requires every decision to serve both people and the planet.”.
From Risk Transfer to Risk Transformation
Traditionally, insurance has focused on transferring risk. Today, leading firms like Howden are shifting toward transforming risk—not just responding to loss but actively shaping more resilient systems.
According to Racha, this starts with asking the right questions:
“Are we pricing risk based on backward-looking data or future climate realities? Are we rewarding sustainable behaviours in our underwriting models?”
By embedding ESG criteria into underwriting, insurers can incentivize companies to adopt more sustainable practices—essentially becoming a lever for decarbonization.
The ESG Imperative in Insurance
The conversation touched on three ESG pillars where the insurance sector has both responsibility and opportunity:
- Environmental: From integrating climate risk models to enabling green infrastructure through tailored products.
- Social: Ensuring equitable access to coverage and supporting vulnerable communities.
- Governance: Strengthening internal policies around transparency, ethics, and stakeholder engagement.
“ESG must be more than a compliance checklist. It should be woven into our decision-making DNA,” Racha emphasized.
“Purpose defines who we are—without it, there’s no direction, no strategy. In business, purpose isn’t philosophy. It’s your operating system.”
Culture as the Catalyst
One of the most compelling points raised in the podcast was the critical role of culture. Technology, tools, and frameworks can only go so far if the organizational mindset doesn’t evolve.
“Resilience isn’t just about physical infrastructure. It’s about people, behaviors, and values,” Jessica noted.
Changing culture means building cross-functional ESG literacy, rewarding long-term thinking, and aligning incentives across leadership.
Collaborating for Systemic Impact
No insurer can tackle the ESG challenge alone. The episode highlighted the need for collaboration between:
- Insurers and reinsurers to share data and best practices
- Governments to align regulatory incentives
- Climate-tech players like Olive Gaea to offer robust carbon accounting and decarbonization tools
Racha put it succinctly: “It’s a shared responsibility. And we need to move fast—because the climate won’t wait.”
The future of insurance isn’t just about protecting assets. It’s about protecting futures. As sustainability moves from the sidelines to the boardroom, insurers like Howden are proving that meaningful ESG integration is not only possible—it’s powerful.
Listen to the full episode here: Podcast page
Explore Olive Gaea’s solutions for ESG-driven industries: Click here
