Steering a large organization such as Gore Mutual towards its lofty environmental, social, and governance (ESG) goals is tremendous challenge, but one that Gaby Polanco Sorto (pictured) has embraced fully.
The VP & head of purpose and sustainability spoke to Insurance Business about the mutual insurer’s journey and the “a-ha” moment that helped shift its perspective on ESG.
“The purpose piece is the hardest when companies are on this journey because trying to integrate sustainability and purpose into the core business is where you make the biggest impact and change,” Polanco Sorto said.
Some organizations get stuck on sustainability because of a perception that decisions based on purpose accrue costs on the business side, explained the VP.
Challenging that perspective and accepting that integrating ESG takes time were two key ideas that have helped galvanize Gore Mutual on its sustainability journey.
“What that’s done for our process is that as we strive to build our strategy for sustainability, we try to find those synergies between our business and sustainability,” Polanco Sorto said.
She also acknowledged that Gore Mutual has an edge as a mutual insurer: it’s governed by and operated in the interests of its employees, broker partners, and communities, with no shareholders to answer to.
“We don’t have some of the influences that others might have in terms of wanting to do things and get them out quickly,” Polanco Sorto said.
“But rather, we had to make a mindset shift, so that we weren’t just launching a bunch of different programmes and initiatives called ‘green’. We are going to take our time, look at our core business priorities, and then identify the opportunities where sustainability can align.”
Of course, there are other ways that purpose creates value for the organizations and its members.
“Often, when you talk about value from a corporate perspective, it’s automatically about revenue or profit,” Polanco Sorto said. “Part of the discussions we’ve had with our executives has been around how are we defining value and for whom.
“Whatever we do around purpose has to either help us attract and retain the top talent because our consumer research shows that employees, specifically Gen Z, are absolutely looking for and valuing culture and purpose when they’re selecting organizations.
“We’re also looking at value from the perspective of changing our processes to save the organization money or help to create a new line of business. Lastly, [creating value] is about investing in the culture of the organization.”
The latter is also what drives Gore Mutual to avoid greenwashing practices, Polanco Sorto noted. The company seeks its employees’ feedback on its ESG initiatives and charitable actions.
“We test a lot of things with our own employees because they will be the most critical of us, if we start steering towards greenwashing. They want to feel a sense of pride in where they work,” she told Insurance Business.
Gore Mutual released its inaugural ESG (environment, social, and governance) report last month, outlining its purpose strategy and disclosing commitments made in alignment with that strategy.
In 2022, the mutual insurer focused on creating a baseline for its ESG work, with the aim to “be good, do good, and spread good.” Some highlights included the launch of its inaugural employee DE&I (diversity, equity & inclusion) council, the completion of its first greenhouse gas emissions inventory, the introduction of a sustainable investment policy, and the launch of a new social impact strategy.
The strong start has helped Gore Mutual launch tangible initiatives this year, including a landmark partnership with EcoClaim that requires its restoration contractors to obtain certification on sustainable practices.
EcoClaim training is focused on repairing, rather than replacing, materials, which cuts down on the environmental impact of the claims process. The initiative, which is estimated to save the insurer more than a million pounds of waste annually, was the brainchild of Polanco Sorto.
“EcoClaim, to me, is a perfect example of what is helping drive the mindset shift within the organization,” she said.
What is your organization’s journey with ESG like? Tell us in the comments section below.
