Climate Change Data

Marsh & McLennan Companies, Inc.

Climate Impact & Sustainability Data (2018, 2019, 2023)

Reporting Period: 2018

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Climate Goals & Targets

Environmental Challenges

  • Slower ESG Investing uptake in Asia compared to global counterparts due to legacy issues, short-termism, lack of awareness, and talent gaps.
  • Limited knowledge and skill resource gap among Asian investors.
  • Slow adoption rate of ESG investing among investors in Asia, prioritizing economic growth and short-term returns.
  • Lack of consequences for inaction and lack of collective efforts by Asian regulators and governments in enforcing ESG policies.
Mitigation Strategies
  • Regulators across Asia are implementing public policies to address the low uptake of ESG investing (examples from Japan, China, Hong Kong, and Singapore are provided).
  • Sharing successful ESG investing experiences to change investor mindsets and perceptions.
  • Increasing commitment of regulators and institutional investors to internationally recognized principles for ESG investing and national stewardship codes.
  • Practical recommendations for advancing stakeholders in their ESG investing journey (detailed in the report).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment (UN PRI), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), Sustainable Development Goals (SDGs)

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Social Achievements

  • Continued to invest in Marsh & McLennan Agency, our fast-growing U.S. middle market brokerage business, completing five acquisitions in 2019 and achieving the current run rate revenue of $1.7 billion.

Governance Achievements

  • In 2011, we expanded the breadth and consistency of our stockholder engagement. In each of the past five years, we have engaged with institutional stockholders holding approximately 36% to 45% of our stock.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • enhanced consulting capabilities to quantify cyber risk
  • Blue[i] Claims, an enhanced analytics platform designed to help clients improve claims outcomes

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:456,178 tCO2e (2022)
Scope 1 Emissions:23,637 tCO2e (2023)
Scope 2 Emissions:71,651 tCO2e (2022)
Scope 3 Emissions:361,525 tCO2e (2022)
Renewable Energy Share:62% (2023)
Total Energy Consumption:351,995 MWh (2022)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Supply Chain Sustainability
  • Employee Well-being

Environmental Achievements

  • 45% reduction in Scope 1 and 2 emissions since 2019
  • Achieved CarbonNeutral® certification for the third consecutive year
  • Implemented renewable electricity across major US, UK, and South Africa offices
  • 95% of construction waste diverted from landfill at NY headquarters
  • 90-kW solar panel array installed in Brussels office
  • Partnership with Mangrove Breakthrough to protect mangrove habitats
  • Launched community-based catastrophe insurance pilot in NYC

Social Achievements

  • Launched @YourBest, a global well-being strategy with 80% favorability score on the annual all-colleague survey
  • Hosted Equity = Possibility Black Leaders Symposium
  • Recognized by Business Insurance for Social Justice Double Match program
  • Supported Ukraine's recovery through insurance and stabilization plan development
  • Global Volunteer Month with over 9,500 participants and US$600,000 raised for 740 organizations

Governance Achievements

  • Conducted an ESG double materiality assessment
  • Enhanced engagement with institutional shareholders
  • Launched LenAI, a generative AI tool
  • Earned a perfect score on the HRC Corporate Equality Index for the 16th time
  • Named to the 2023 Fortune World’s Most Admired Companies list and Bloomberg Gender Equality Index for the sixth year

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions across global operations by 2050
Medium-term Goals:
  • 50% emissions reduction by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate change impacts (extreme weather, supply chain disruptions)
  • Cybersecurity threats
  • Attracting and retaining top talent
  • Pay equity
  • ESG complexity and evolving stakeholder expectations
Mitigation Strategies
  • Science-based targets for net-zero emissions by 2050
  • Climate resilience analysis for clients
  • Robust enterprise risk management strategy
  • Internal carbon pricing for business travel
  • Investing in employee well-being and development programs
  • Annual pay equity studies and adjustments
  • Enhanced cybersecurity risk management program
  • Supplier engagement on sustainability

Supply Chain Management

Responsible Procurement
  • Supplier engagement on sustainability
  • Environmentally preferred purchasing guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, flooding
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of climate resilience solutions for clients
  • Transition to renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNEP FI Principles for Sustainable Insurance

Certifications: CarbonNeutral®, ISO 45001, SOC 2 Type II

Third-party Assurance: LRQA (emissions data)

Sustainable Products & Innovation

  • Community-based catastrophe insurance
  • Extreme Heat Income Insurance
  • Supplementary professional indemnity coverage for contractors with strong ESG performance

Awards & Recognition

  • Insurance Insider’s Brokering Innovation of the Year
  • Business Insurance’s US Community Outreach Project of the Year