A new report by global insurance industry collaboration ClimateWise has found continued improvements in efforts to address climate change among its member companies.
The initiative’s 2021 Independent Review highlights increased value chain collaboration to enhance understanding of climate risks and opportunities and enable net-zero objectives within and beyond the industry.
The independent review also provides recommendations for strengthening the membership’s disclosure of the risks and opportunities associated with global change.
These include the need to increase reporting of the metrics used to measure and manage climate-related issues, and the need to further build on value chain collaboration and contextualise individual strategic responses within the industry as a whole.
Overall, ClimateWise reported that the group score of its membership, based on adherence to a number of climate principles, rose from 65% to 68% in the 2021 review.
Principles under examination included governance structures for oversight of climate-related issues, incorporation of climate issues into underwriting and investment decisions, environmental impacts of operations, and proactive engagement external organisations, industry bodies and policy makers.
This year’s ClimateWise Principles Independent Review is the third year of reporting in full alignment with the Recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and suggests members are well prepared for the rollout of mandatory TCFD disclosure requirements.
“The ClimateWise membership has again demonstrated in the Principles Independent Annual Review the insurance industry’s ambition and action to provide the products and services for a smooth transition to net zero by 2050,” said Dominic Christian, Chair of ClimateWise and Global Chairman, Reinsurance Solutions at Aon.
“The breadth of membership and the tangible cooperation across the insurance value chain enable clients, as well as government and wider society, to understand their changing risk exposure and the implications for adaptation and transition measures to be taken.”
Bronwyn Claire, Senior Programme Manager for ClimateWise, also commented: “As we reflect on ClimateWise’s third year of independently reviewed, TCFD aligned reporting, I am delighted to see the group score rise again and new members reporting for the first time.”
“It is fantastic to see the increased diversity both within our membership and in member activities. As outlined in this year’s report, collaboration across the value chain will be critical in ensuring the insurance industry fulfils its role in addressing the climate crisis”.
Clare Shine, CEO and Director for CISL, added: “This latest ClimateWise Principles Independent Annual Review showcases the ambition of the insurance industry and I am delighted to see continued improvement in member scores. The Review presents the rationale for closer collaboration across the insurance value chain to drive innovative approaches to decarbonisation – an urgent message that particularly resonates after COP 26.”
