Climate risk for insurers – the pathway to Net Zero

Insurance Investor promotional contentposted on Tuesday, June 01, 2021

This article was produced by Invesco as part of their valued Industry Partnership to Insurance Investor.

Spurred by regulatory, supervisory and investor-led initiatives, climate scenario analysis is rapidly emerging as an essential component of efforts to manage the risks around climate change. Like all financial institutions, insurers face enormous pressure to embrace developments in this sphere as part of the unfolding transition to a low-carbon economy and a Net Zero world.

Reflecting a trajectory seen during the rise of environmental, social and governance (ESG) investing, the landscape of climate scenario analysis is at present complex and potentially confusing. In tandem, developments are increasingly encompassing not only the concept of risk but the notion of financial institutions as climate advocates committed to long-term, positive transformation.

To navigate this fast-evolving space, practitioners need to understand the crucial choice between different approaches and the breadth of expert guidance and tools already available. In the face of further innovation and mounting policymaker pressure, a “wait and see” attitude is increasingly hard to justify. Insurers must close the circle of analysis, reporting and regulation as soon as possible.

Insurers such as Phoenix Group have already taken the first steps on their multi-stage journey to Net Zero, with support from Invesco.

Invesco’s ‘Climate Risk for Insurers’ whitepaper series and webinar outline the implications of climate risk regulations, as well as some practical solutions for insurers, including a case study with Sindhu Krishna on how Phoenix Group are implementing their Net Zero strategy. Sindhu is joined by Invesco’s Richard Glenn (Head of EMEA Insurance Distribution), Elizabeth Gillam (Head of EU Government Relations and Public Policy) and Maria Lombardo (Head of ESG Client Strategy, EMEA).

Click here to find out more.

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