Investors and stakeholders are increasingly interested in a company’s planning and positioning for Environmental, Social, and Corporate Governance (ESG). More significance and value is placed on taking a proactive approach than ever before. Evaluating ESG is typically reflected in a score that implies that certain assets and metrics are present in a company. Companies that fail to address this significant issue are at a competitive disadvantage.

ESG for the Construction Industry

Construction project owners are increasingly concerned about ESG, and demand higher and higher standards of the contractors completing their projects. This includes things like jobsite integrity, worksite safety, waste management and resource management. In the event of a problem at a jobsite, owners want it resolved quickly and responsibly. Construction projects will be more challenged to demonstrate responsibility in all facets, including design, material selection and onsite operations.

Smaller contractors often face the same lofty ESG standards as their larger counterparts, but lack the resources to address them. Through a UCPM partnership with Environmental Risk Professionals, LLC, we can help insureds train and manage their environmental risks, implement more sustainable practices, and reduce the chances of a potentially damaging environmental situation. Resources include written best management procedures, site reviews, operations and maintenance plans, and pollution prevention practices.

Certified Environmentally Responsible Contractor (CERC)

Environmental Risk Professionals also administers a certification for contractors so that they can demonstrate they are properly insured and trained to reduce the likelihood of a pollution event occurring from their work. To learn more about the CERC program, please visit https://c-e-r-c.com/

ESG for Property Owners

Across a range of industries, property owners are facing increasing pressure to ensure that their facilities are environmentally and socially responsible. This goes well beyond just ADA accessibility and parking configurations. Facility managers face pressure to save energy, and have a low impact on surrounding environments. There is increased scrutiny to how they comply with environmental regulations and manage risks. Properties in the hospitality, entertainment, education and retail industries in particular have faced recent pressure to make sure their facilities are clean and virus free.

Environmental Insurance

UCPM can help address potential environmental issues for companies by providing comprehensive pollution coverage for both property owners and contractors. Companies can rest easier knowing that, if an environmental issue arises, a risk transfer mechanism is in place. Pollution coverage remains a relatively inexpensive option and helps companies demonstrate responsibility towards ESG compliance.