Businesses today have to be about much more than just profitability, a leading insurance executive has said.

Alison Hill, CEO of the Argus Group, was speaking as the company released its inaugural Sustainability Report, which features its future sustainability goals and its environmental, social and governance key achievements over the past year.

She said: “Businesses are being held to a much higher standard and being a profitable, well-run business with a strong balance sheet is no longer sufficient.

“Never has the importance of being an environmentally and socially responsible, purpose-led, sustainable business been so essential.

“At Argus, we have always encouraged our colleagues to use their moral compass when making business decisions, so our sustainability strategy is flexible enough to respond to the emerging environmental and social issues that lie ahead.”

Writing in the report, Ms Hill said: “Never has the importance of becoming sustainable been more relevant. The effects of climate change, the depletion of our biodiversity and natural resources, the stark economic inequities and widespread social injustices we see across the world, demand that we act now.”

She said Argus’ annual sustainability report will add transparency to the ongoing process.

Ms Hill wrote: “It details actions we have taken to push our Black Lives Matter and diversity and inclusion agenda. Being honest about our focus on eradicating racism and bias, and using real language to address it.

“Highlighting the opportunity to work differently during the Covid-19 pandemic, as well as our intent to minimise our carbon footprint, invest sustainably, underwrite responsibly and protect our clients’ data.”

She added: “We are a good corporate citizen and we have set goals to become an even better one.”

In addition to implementing the programmes under the Black Lives Matter umbrella, the group examined the make-up of its leadership.

Of its board of directors, 27 per cent are female and 18 per cent are Black, while Argus’ executive leadership team is 40 per cent female and 40 per cent Black.

The report said: “We are working to create real and meaningful diversity within the organisation, demonstrating this from the top.”

In 2022-2023, Argus said, its priorities are:

• Determining the sustainability issues that matter most to its key stakeholders

• Implementation of DEI and Black Lives Matter action plans

• Continuing to integrate sustainability considerations including climate change into its wider risk management framework and business processes

• Evolving its sustainability reporting to align with a globally recognised sustainability reporting framework

• Developing a plan to determine its carbon footprint baseline

• Considering reporting requirements for the organisation’s sustainability accreditation

• Continuing to enhance communication and information channels within Argus and its external stakeholders to provide transparency of its sustainability initiatives and progress.

The idea of introducing an annual sustainability report came in 2021, Argus said, as it recognised the need to provide greater transparency on its commitment to sustainability, ensuring all key stakeholders are positively impacted by the group’s business activities, now and in the future.

A sustainability management committee was established by the board of directors to oversee and fulfil Argus’ sustainability work.

The group said it has gathered input from colleagues to develop a core set of sustainability principles and a solid governance framework that will span all areas of the organisation.

The six sustainability principles in the report are: our people, our customers and patients, our communities, our shareholders, our environment, and trusted and responsible business.

Kimberley Caines-Best, SMC chairwoman and senior legal counsel, said: “Today, sustainable business models are no longer optional, but are required for long-term survival.

“There is a growing demand for greater transparency and accountability and sustainability reporting allows us to reaffirm our purpose, mission and values, to measure our performance, and set goals and develop strategies that will effect change.

“Through responsible management and the embedding of social, economic and environmental considerations into our strategy, we can marry our approach to sustainability with our corporate strategy and achieve beneficial outcomes for our people, our customers, our communities and our shareholders.”

Simon Giffen, executive sponsor of the sustainability group and Argus’ chief investment and governance officer, said: “We are already working hard towards achieving our sustainability goals for next year, as we strive to manage our business in a socially, well governed, and environmentally responsible way.

“We began this journey by asking ourselves how we can create lasting value and impact for all our stakeholders. In pursuing goals that align with Argus’ values, we are committed to meeting this ongoing challenge and look forward to sharing our progress in the years to come.”