Insurers making progress with climate disclosures

Insurers are making progress in disclosing their preparedness and response to climate change, according to the ClimateWise Principles Independent Review 2022.

Steady progress can be shown amongst insurers, reinsurers and brokers, the organisation convened by the University of Cambridge Institute for Sustainability Leadership said in its fourteenth year of reporting against the ClimateWise Principles, which have been aligned with the Taskforce on Climate-related Financial Disclosures recommendations since 2019.

Nina Seega, director of sustainable finance, CISL said: “The rapid expansion of the ClimateWise member ship reflects the growing concern within the industry over the climate emergency. This year’s ClimateWise Principles report demonstrates the action member s have taken in developing risk management solutions, integrating climate risk into operating structures, operationalising voluntary reporting, as well as demonstrating leadership at the highest global level on the importance of action on climate change. The focus for the industry now needs to move to insurers, reinsurers and brokers becoming long-term partners and essential enablers of enhanced climate financing, climate resilience building and climate solutions.”

The report outlines four key actions where the membership and the wider industry should continue to advance the long-term change required by its customers and society at large, amongst them:

--Accelerate climate action and increase stakeholder engagement;

--Overcome implementation barriers and embrace decision making with imperfect information and lack of available data;

---Fully integrate ESG reporting frameworks and embed them into the business and long-term strategic plans; and

---Increase broader understanding that climate change, nature loss and social challenges need to be addressed in a systemic manner in order to maximise potential synergies and cost efficiencies and avoid unintended consequences of tackling issues in isolation.

Kevin O’Donnell, president and CEO of RenaissanceRe and chair of ClimateWise commented: “As expert managers of risk and volatility, ClimateWise members are uniquely positioned to understand and mitigate the potential impact of climate change on society. In this year’s Principles Independent Annual Review, the ClimateWise membership continues to display the insurance industry’s focus on employing risk management expertise to drive forward the transition to a climate-resilient future and seek out opportunities to develop innovative product solutions.”

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