The next steps for insurers on their road to net zero

This article was produced by abrdn as part of their valued industry partnership to Insurance Investor.

In the first of four articles on the insurance sector and sustainable investment, we explore the targets insurers need to set on the road to net zero.

Our research tells us that when insurers set measurable environmental, social & governance (ESG) objectives, 96% of them relate to climate change.

That was one of the key findings of our recent survey ‘Sustainable investment in European Insurance’, which saw us interview 60 insurers, covering 42% of European insurance assets under management.

For 58 of our 60 interviewees, dedicating a percentage of their portfolio to green assets was a key ESG objective. This is how many insurers plan to help finance the energy transition. Around half of the insurers interviewed also focus on broader considerations, such as seeking to reduce their portfolio’s carbon footprint relative to a benchmark. And for around a quarter of insurers (14/60), this has evolved further still, encompassing a commitment to net zero.