DENVER, Colo. — Companies that are committed to sustainable business practices, already at the forefront of their fields, now have the option to reap benefits from those practices in a new area: their insurance policies.

Domani Sustainability Consulting, an executive management consultancy, and Garnet Captive Insurance Services, which offeres a range of alternative insurance programs, have announced an alliance to create the first captive insurance program designed exclusively for companies that meet a series of sustainability guidelines.

The innovative insurance program, called 'Green,' is expected to significantly reduce insurance premiums for companies that enroll.

"We believe that companies that have demonstrated a commitment to sustainability should have lower insurance risks," said Andrew Cavenagh, Garnet's President. “We expect that the positive impact these companies have on their corporate cultures can translate into lower insurance liabilities, including stronger employee safety records.”

'Green' will offer workers’ compensation, general liability, and automotive liability insurance policies to qualified companies with combined premiums in excess of $250,000. The program is expected to be operational in the second half of 2007. Companies that apply for membership to 'Green' will be evaluated by Garnet and Domani, based on factors such as risk profile, commitment to sustainability, and business needs.

For example, membership will be considered for companies that:
  1. Purchase or generate energy from renewable sources;
  2. Implement energy efficiency best practices;
  3. Set targets for reducing environmental impacts;
  4. Occupy LEED® certified buildings;
  5. Develop clean technologies and environmentally-friendly products;
  6. Provide services or products that support healthy lifestyles; and/or,
  7. Participate in environmental community outreach programs.
Membership in organizations that promote corporate citizenship, such as Ceres and Business for Social Responsibility, and/or climate protection, such as the Chicago Climate Exchange or EPA Climate Leaders, will also be considered in evaluating potential members.

Domani will help evaluate membership applications based on the above criteria. The firm will also develop models to quantify relationships between sustainable business practices and insurance risks.