AA Insurance has reaffirmed its commitment to ESG (environmental, social, and governance) principles by aligning sustainability with its core operations.
Shaun Rees (pictured), chief product and marketing officer at AA Insurance, stated that the company’s approach is shaped by ongoing materiality assessments that identify community disaster recovery as a top priority.
To operationalise this focus, the insurer has partnered with the Student Volunteer Army (SVA) to build capacity for rapid volunteer mobilisation across schools and tertiary institutions.
Internally, the collaboration has informed the redesign of AA Insurance’s volunteer program, resulting in a 150% increase in employee volunteer hours over the past year.
Rees said that while consumers remain committed to social and environmental values, many now expect the corporate sector to lead due to constraints in personal resources.
“Amid so many competing pressures, a clear trend is emerging; while consumers are still committed to environmental and social impact, they have fewer options and less freedom to make sustainable choices in their own lives, so they’re placing greater expectations on businesses to bridge the gap,” he said.
In early 2025, the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) voiced strong support for climate adaptation legislation the government intends to roll out this year.
The initiative follows parliamentary recommendations and aims to clarify institutional roles, establish resilience funding models, and enhance access to climate risk data.
Kris Faafoi, chief executive of ICNZ, highlighted the importance of clear policy direction.
“New Zealanders need certainty about the way natural hazard risks from climate change are going to be managed, and government leadership in this critical area is welcome,” he said in a previous statement.
Insurers are expected to collaborate in developing an implementation roadmap that accurately reflects the evolving risk landscape, particularly in regions increasingly affected by natural hazards.
Alongside broader industry adjustments, small and medium-sized businesses (SMEs) are being urged to evaluate their exposure to environmental disruptions.
Marsh introduced a guide that identified key climate-related risks for SMEs, which include physical hazards, regulatory shifts, reputational exposure, legal liability, and employee health concerns.
The document outlined how environmental changes – ranging from flooding and erosion to new emissions regulations – can impact business continuity and financial performance.
The report also warned that reputational expectations are increasing, with businesses expected to show concrete sustainability efforts rather than symbolic gestures.
With climate adaptation rising on the national agenda, insurers are revisiting their approach to ESG.
Rees said authenticity in sustainability efforts is key to both credibility and resilience.
“It’s not about doing more than you can or wading into a social cause that you know nothing about; it’s about doing what you can, authentically and effectively, to create impact,” he said.
