Document Type : Promotional-Science Article
Authors
1 Department of Accounting, Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran
2 Department of Business and Economic Studies, Faculty of Education and Business Studies, University of Gävle, Gavle. Sweden
3 Department of Macro Insurance Studies, Insurance Research Center, Tehran, Iran
Abstract
BACKGROUND AND OBJECTIVES: The insurance industry plays an important role in sustainable development. Sustainability key factors potentially are essential to success of the insurance sector. Iran's insurance industry is facing sustainable development issues such as rapid population growth, lack of access to insurance for low-income people, the climate change risk, social issues such as population aging and issues related to governance, accountability and transparency. Sustainability reporting helps to have a good understanding of these issues. Sustainability reporting helps identify insurance industry risks.Sustainability reporting examines environmental, social, and governance issues. Few companies prepare sustainability reports in Iran. But no company in the insurance industry has published a sustainability report yet. The purpose of this paper is a comparative comparison of sustainability reporting standards in the global insurance industry.This study also examines the status of the sustainability reports publication of insurance companies in the world.
METHODS: In this study, analyzing content was used to assess the status of sustainability reporting in the insurance industry. Data extracted from the Global Reporting Initiative database. Sustainability standards and guidelines were reviewed through comparative comparison.This paper has examined the standards of the Global Reporting Initiative and The Sustainability Accounting Standards Board, the guidelines of the Responsible Investment, the Sustainable Insurance Principles, and Climate-related Financial Disclosures. These guidelines and standards are used by the leading insurance companies. Regulation of the Iranian insurance industry that can help to prepare sustainability reporting was also reviewed.
FINDINGS: Findings indicate that the stakeholders of sustainability reports differ in different sustainability standards and guidelines. The Global Reporting Initiative standards focus on the interests of all stakeholder groups; while the Sustainability Accounting Standards Board emphasizes the interests of investors. Principles of Sustainable Insurance and Standards of The Sustainability Accounting Standards Board are specific to the insurance industry; while the standards of the Global Reporting Initiative do not focus on a specific industry. A review of Iranian insurance industry regulations shows that most of the information needed to disclose sustainability issues is available. However, the preparation of sustainability reports is essential to cover all aspects of the environment, society, and governance. The findings also indicate that the status of published sustainability reporting is increasing in the insurance industry. The use of auditing firms to ensure sustainability reports is a priority.
CONCLUSION: There are various standards and guidelines in the field of sustainable development and environmental, social, and governance issues.The different guidelines and frameworks for sustainability reporting highlight the need for an integrated framework for sustainability reporting. The comparability of sustainability reports has become difficult due to the variety of different guidelines. Iranian insurance companies can use the guidelines and standards of sustainability reporting to identify specific components of insurance industry sustainability reporting. Given the pressure of stakeholders and the emphasis of international institutions such as the United Nations and the growing trend of mandatory sustainability reporting, the research findings emphasize the need to prepare sustainability reports by Iranian insurance companies.
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