A new report by global insurance industry collaboration ClimateWise has found that its member companies have made progress in disclosing their preparedness and response to climate change.
It also highlighted the need for insurers, reinsurers and brokers to become long-term partners and essential enablers of enhanced climate actions.
The initiative’s 2022 Independent Review highlights the action members 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 report indicated that the size and diversity of ClimateWise membership is steadily growing – now standing at more than 40.
Nina Seega, Director of Sustainable Finance, CISL, said: “The rapid expansion of the ClimateWise membership reflects the growing concern within the industry over the climate emergency.”
Overall, ClimateWise reported that the group score of its membership, based on adherence to a number of climate principles, rose from 68% to 69% in the 2022 review.
The Principles have been aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations since 2019.
“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,” Seega added.
ClimateWise’s report outlined 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.
These include the need to accelerate climate action and increase stakeholder engagement; overcome implementation barriers and embrace decision making with imperfect information and lack of available data; and to fully integrate ESG reporting frameworks and embed them into the business and long-term strategic plans.
ClimateWise’s fourth key action is to ncrease 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.