The ClimateWise Principles support ClimateWise members to disclose their specific response to the risks and opportunities of climate change to the financial markets.
The ClimateWise Principles were launched in 2008 to frame member activities as they integrate a response to climate change across their business activities. The ClimateWise Principles are unique in being tailored specifically to the risks and opportunities of climate change.
Members are required to annually disclose their individual progress against the ClimateWise Principles. Their submissions are then independently audited and each member is provided with a confidential, benchmarked ranking. This allows them to compare progress against their ClimateWise peers. An independent, public annual review summarises the overall progress made by the ClimateWise community. This helps the insurance industry to disclose to governments, regulators and society more broadly how they are responding to the physical, transition and liability risks and opportunities climate change present.
The ClimateWise Principles were updated in 2013, to reflect the significant progress made by the membership.
The ClimateWise Principles Independent Review 2016 finds that ClimateWise members, on average, have continued to improve their scores for the second consecutive year. Four members have attained a score of over 80 per cent this year, compared with just one in 2015.
The reported activities, across all six of the ClimateWise Principles, demonstrate a commitment by members to play their part in supporting the low carbon, climate-resilient transition. They show year-on-year progress in integrating the risks and opportunities of climate change across their businesses yet highlight the need for the industry to do more within its investment activities.
The 2015 independent annual review of the six ClimateWise Principles shows improved scores for members of the insurance industry leadership group. Progressive insurance companies are considering their exposure to climate risks while also developing their role as societies' risk managers.
“Over time, the adverse effects of climate change could threaten economic resilience and financial stability. Insurers are currently at the forefront. Insurers, including those who are members of ClimateWise have unique risk management expertise to help address the protection gap among those who are most exposed to climate risk. ClimateWise has been valuable in helping the industry to consider and disclose their climate-related risks and opportunities – both in their underwriting and investment decisions – as well as in promoting a culture of disclosure and awareness to climate risk in financial markets.”
Mark Carney, Chairman of the G20 Financial Stability Board