Looking for an ESG-driven strategic approach. An explorative analysis in Italian insurance companies

The impact of climate change on insurance companies has become increasingly apparent, prompting a shift in their governance and investment strategies. With a growing recognition of Environmental, Social, and Governance (ESG) factors, insurers are reevaluating their risk management approaches. This paper explores the integration of ESG considerations in the strategic decision-making processes of Italian insurance companies, focusing particularly on mitigating greenwashing behaviors. Despite the acknowledged importance of ESG factors in assessing financial risks, there remains a gap in the effective integration of sustainability into the operations and strategies of insurance firms. This study aims to address this gap by examining the dimensions of an ESG-driven strategic approach and its effectiveness in managing sustainability within the insurance sector. Through a sequential exploratory research design, combining qualitative and quantitative methods, this study seeks to identify the drivers of ESG-driven strategies adopted by Italian insurers to combat greenwashing. Qualitative analysis will offer insights into corporate strategies, while quantitative analysis will establish correlations between these strategies and greenwashing behaviors. The research question driving this study is: How does an ESG-driven strategic approach mitigate greenwashing behaviors in Italian insurance companies? By employing set theory methods such as fsQCA, the study aims to identify the most effective ESG-driven strategies for preventing greenwashing in the insurance industry. The findings of this study are expected to contribute to the identification of ESG best practices within the Italian insurance sector, offering insights into how insurers can achieve sustainable goals while mitigating risks associated with climate change. Moreover, by developing adaptive capabilities to manage transition and physical risks, insurers can enhance their resilience to climate-related challenges, ultimately fostering sustainable development within the industry.