There is greater scrutiny of how climate targets connect to strategy, capital allocation, governance, and risk management.
Due to this, regulators and investors are focused on whether companies have the right transition plans and/or other broader disclosures to evidence whether their plans are credible and financially grounded.
“For insurers with long-term investment horizons, the key risk is no longer a lack of disclosure but exposure to plans that appear credible on paper and prove difficult to deliver in practice,” said Catalina Secreteanu, Head of Market Development, Morningstar Sustainalytics.
Asset owners put climate transition readiness (56%), energy management (48%), and physical climate risk (42%) at the top of their list of the most material environmental factors, according to one study. Over 70% indicated that climate change plays a central role in their investment strategies.
Sign in to read the full article or Register for FREE and get access
SIGN IN
FREE PREMIUM ACCOUNT
Don't have an account yet?
To access
the premium content FOR FREE on Insurance Investor, you must first sign in to your account.
Not subscribed? Sign up today for free
Why subscribe? Click here for more details