The ClimateWise Principles are the only international climate change standard tailored to the specific needs and expertise of the insurance industry.
The ClimateWise Principles were launched in 2009 following an exhaustive, consultative process with various stakeholders across the insurance industry. Intended to help frame members activities as they integrate a response to climate change across their business activities, The ClimateWise Principles are unique in being tailored specifically to climate change.
Members are required to report annually on their individual progress which is independently audited. Each member is provided with a confidential, benchmarked ranking that allows them to compare their progress against their ClimateWise peers. An independent review also summarises the overall progress being made by the ClimateWise community in response to the zero carbon, climate-resilient transition. This helps the industry to identify emergent best practice but also helps inform governments, regulators and civil society on how insurance is responding to the physical, transition and liability risks it faces from climate change.
In 2013, the ClimateWise Principles were updated, to reflect the significant progress being made by the membership.
“Overtime, 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
“Compliance with ClimateWise Principle 1 – ‘Lead in Risk Analysis’ can help to inform our rating analysis with regards to competitive position, capital adequacy, earnings and enterprise risk management.”
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.