REFINE YOUR SEARCH

Roadmap for reinforcing ESG and climate criteria in insurers' investment strategies (PDF)

Roadmap for reinforcing ESG and climate criteria in insurers' investment strategies (PDF)

Roadmap for reinforcing ESG and climate criteria in insurers' investment strategies (PDF)
28/11/2017

In Spring 2017, the FFA’s Sustainable Development Committee and its Economic and Financial Committee set up a working group to assess the integration of ESG and climate criteria into insurers’ investment strategies and establish recommendations for the industry. The results of the group’s work demonstrate the industry’s engagement with the challenges of sustainable development.

The study, carried out with the firm i care & consult, shows that insurers are acting to integrate environmental, social and governance (ESG) and climate criteria into their investment strategies. All have put responsible investor policies in place and these criteria are already having a significant impact on the investment strategies of 60% of insurers. The integration of ESG-climate criteria by insurers will intensify over the next two years.

 

From the assessments carried out, eighteen operational recommendations were identified to help companies embed these criteria more firmly in their investment choices. These recommendations focus in particular on:

  • strengthening the ownership of ESG and climate impacts through governance: for example, by having the ESG-Climate policy adopted by the board of directors or setting up a committee dedicated to integration of ESG and climate issues;
  • developing in-house expertise, in particular by establishing key indicators for monitoring implementation of the ESG strategy, involving management companies in ESG and climate assessment and strengthening shareholder engagement around these issues;
  • improving the quality of reporting, by establishing a timetable for expanding the range of assets covered by ESG and climate analyses and the quality of those analyses;
  • strengthening collaborative approaches by maintaining regular exchanges between peers in order to share good practice and initiate joint research projects, and putting in place an annual survey to monitor the industry’s progress.

This road map will enable insurers to establish their action plans to speed up the integration of ESG and climate criteria into their strategies.

According to Bernard Spitz, President of the FFA: “For many years, French insurers have been working to promote sustainable development and the fight against climate change. With these recommendations, the industry has adopted a real action plan that will enable it to speed up the integration of ESG and climate criteria and thus to consolidate its commitment to responsible investment.”

Climate issues

Read also

Climate-related financial reporting: Operational framework for a constructive dialogue between investors and companies

In order to analyse and manage their portfolios, investors and asset management companies need information on the climate strategy of the companies in which they invest. A joint initiative has been set up under the umbrella of the French Business Confederation (MEDEF), the French Insurance Federation (FFA), and the French Asset Management Association (AFG) in order to define a common reporting framework on corporate climate strategy and related indicators.

Hurricane prevention and preparation of your home

The most important measure you can take to reduce damage to your home and property is to protect the areas where wind can enter.  It is important to strengthen the exterior of your house so wind and debris do not tear large openings in it.  You can do this by protecting and reinforcing these five critical areas: roof, shutters, doors and garage doors.

Climate risks : Impact on natural hazards insurance between now and 2040

The increasing frequency and intensity of natural hazards is often cited as an early indicator of climate change. Insurers, using past figures for insurance payments for damage caused by natural hazards having occurred in metropolitan France, have attempted, with the study Climate Change and Insurance (Changement climatique et assurance), to reply to the following question: Is it possible to put a figure on the impact of climate change on insurance between now and 2040 ?