The International Cooperative and Mutual Insurance Federation (ICMIF) has unveiled its 2023 Members Sustainable Investment Report, indicating a remarkable 32% increase in sustainable investments, with members collectively managing $1 trillion in assets aligned with sustainable investment frameworks.
The data disclosed in the report demonstrates the commitment of ICMIF members to sustainable finance, with $1.003 billion being invested in sustainable investment frameworks.
These frameworks include green bonds, social bonds, and resilience bonds, with a focus on addressing climate change and its adverse impacts.
This 32% growth in investment from the $759 billion reported in 2022 underscores the growing importance of sustainability in the insurance industry.
Mutual and cooperative insurers, representing nearly 30% of the global insurance market and managing $10.4 trillion in assets, are making a substantial contribution to sustainable finance.
Shaun Tarbuck, CEO of ICMIF, lauded this achievement, stating, “The latest edition of the ICMIF Members Sustainable Investment Report reveals the results of the 2023 ICMIF Sustainability Investment Framework Survey which are testament to how our members have continued to increase levels of investments in sustainable frameworks since the inception of our survey in 2019. The insurance industry is uniquely positioned to assist with delivering climate action as it has both the assets to invest and the in-depth knowledge of the many risks that need to be mitigated both on a macro level and a community level to make people and the planet more resilient.”
The key findings of the ICMIF Members Sustainable Investment Report for 2023 illustrate the remarkable progress made by ICMIF members in advancing sustainable investments.
Notably, these members have significantly increased their commitment to sustainability, aligning $1.003 billion of their assets under management (AUM) with sustainable investment frameworks, representing a 32% surge from the previous year.
An impressive 79.4% of AUM for survey respondents are now invested in sustainable frameworks, a substantial jump from the 51% reported in the previous year.
Impact investing has shown exceptional growth, witnessing a staggering 575% increase to reach $105.6 billion, with some members allocating over 10% of their total AUM to this purpose, including one member investing an outstanding 68%.
Furthermore, 57% of respondents are investing in sustainable bonds, amounting to $18.3 billion. As a sign of their commitment to climate action, 40% of ICMIF members have pledged to achieve net-zero emissions, up from 37% in the previous year.
The report also indicates a growing emphasis on sustainability reporting, with 77% of members actively reporting on sustainability in various ways.
In addition, 59% of ICMIF members have achieved or are in the process of achieving compliance with the Task Force on Climate-related Financial Disclosures (TCFD).
