Page 12 - Turkinsurance Digital Magazine
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First of all, the report underlines the role ing processes. These areas are external
of the finance function in communicating reporting, planning, budgeting and fore-
the contributions of insurance companies casting, performance reporting, invest-
to society by various metrics and in de- ment prioritization and capital allocation,
veloping incentive programs that provide real estate and leasing management, sup-
tangible sustainability results. plier management, tax, M&A strategy and
workbook.
Nowadays, in an environment where reg-
ulatory reporting and policies are con- The report also draws attention to the
stantly evolving and changing all over the priorities of CFOs to ensure that insur-
world, climate reporting is turning from ance companies achieve their sustaina-
being a voluntary option for companies to ble finance goals, and what they can do
becoming a necessity. Our report indicates to focus on long-term value and maintain
that the CFO of insurance companies can financial flexibility. Together these priori-
consider this transformation as an oppor- ties, develop the enterprise's sustainability
tunity to lead the business in creating long- strategy, sustainability measurement and
term value. Again, standards are develop- reporting framework to create for stake-
ing rapidly on the side of ESG reporting. holders, a robust and well-controlled use
The sustainability of CFOs, including ad- of language description, sustainability,
vanced data analytics and new technolo- business agility, flexibility and long-term
gies for advanced corporate reporting and value strategy are to support capital dis-
strategic planning across teams to build tribution to revisit.
“It is possible to say and develop the skills they need to recon-
that as sustainability has sider their career route is quite important. Can we say that the issues on which
Considering that the draft regulations will CFOs are the key decision makers are
become an important be implemented over a period of two to increasing? What are these issues hap-
agenda item, the issues three years, CFOs should ensure that the pening in the new period?
processes and controls supporting ESG re-
where CFOs are the key porting are well designed and meet the re- According to the evaluations given in
decision makers have porting requirements. There are three key EY's ‘Sustainable Finance for Insurance
issues that distinguish between the data Company's CFOs’ report, it is possible to
increased” that insurers need for ESG reporting and say that as sustainability has become an
what actually exists: Data suitability, data important agenda item, the issues where
availability and data consistency. The re- CFOs are the key decision makers have
port also reveals that for the solution, in- increased. These issues are mainly the
surance companies must equip themselves determination of the sustainability strate-
with a strong in-house research expertise gies of the company that create long-term
and sophisticated screening techniques. value, making decisions that will contrib-
ute not only to the growth of the company
The report emphasizes that financial but also to the development of the society
managers in the insurance sector play as a whole in the long run, the distribution
effective roles in achieving the envi- of resources by taking into account the
ronmental, social and corporate gov- sustainability criteria, the determination
ernance (ESG) goals of companies, of investment areas by considering their
and that the effectiveness of financial contribution to non-financial performance
managers in achieving the sustainabil- as well as financial performance, report-
ity goals of insurance companies is in- ing and determining the language to be
creasing. Can you tell us about the de- used in communication with stakeholders,
veloping roles of CFOs based on here? making the necessary plans to include sus-
tainability issues in business processes,
The report includes topics on which finan- determining the criteria to be considered
cial management will play a leading role in the selection of employees, suppliers
in incorporating sustainability into exist- and agencies.
