Some State Legislators Pushing Anti-ESG Against Insurance Industry

Insurers are already on the front lines of climate change. Now they’re getting their turn on the front lines of the anti-ESG movement.

Lawmakers in red states like Texas, North Dakota and South Dakota are trying to bar insurers from weighing environmental, social and governance factors in writing policies.

On the other side, activist shareholders and blue states are trying to limit insurers’ investments and underwriting in oil and gas projects. A bill introduced last month in Connecticut would establish a surcharge on insurers that underwrite fossil fuels.

For an industry that’s based on evaluating and pricing risk, it’s all a little rich.

‘ESG is in the DNA of any insurance company," said Michel Leonard, chief economist and data scientist at the Insurance Information Institute. ‘It would be very difficult for the insurance industry to insure in an economically viable and sustainable way without paying attention to environmental patterns."