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Sustainable finance: How can we create a finance system that incentivises and rewards long-term thinking?

It is widely recognised that today's financial system does not actively reward long-term thinking. Often, it can actually work against efforts to build a sustainable economy.

CISL’s Centre for Sustainable Finance is a research, education and practice hub on financial market reform to help governments, financial institutions and businesses build a sustainable financial system. Its work is underpinned by insights from CISL’s finance sector business groups, made up of leaders from over 50 financial institutions across five continents.

ClimateWise (global insurance)

ClimateWise comprises 29 leading insurers, reinsurers, brokers and industry service providers who share a commitment to reducing the impact of climate change on society, as well as the insurance industry.

Banking Environment Initiative

Some of the world’s largest banks working to lead their industry in directing capital towards environmentally and socially sustainable economic development.

Leading investment managers and asset owners with over US $5 trillion under management working to help shift the investment chain towards responsible, long-term value creation.

 

Featured

Investing for Resilience 

Environmental_risk_analysis.pngTraditional response to rising levels of risk – to re-price, withdraw or transfer exposure to others – will always remain a central feature of how insurance manages its risk pools. However, society will struggle to reduce the climate risk protection gap – the growing divide between total economic and insured losses – if the insurance industry’s response to climate change is limited to avoiding, rather than managing the risk. Managing societal resilience to climate change will therefore become more important as exposure intensifies.

In response, ClimateWise’s Societal Resilience Programme, of which this study is part, brings ClimateWise members together with a range of stakeholders to identify actionable solutions for how the insurance industry can support society’s transition to a zero carbon, climate-resilient economy. It explores this via the industry’s investment activities.

 

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Thought leadership

Insurable Cities: The ClimateWise Principles Independent Review 2017

November 2017 – The ClimateWise Principles Independent Review 2017 of the six ClimateWise Principles finds a third year of improved scores for members of the insurance industry leadership group. On its 10th anniversary the report finds the industry has improved its investment activities but members should look to further integrate climate change related initiatives into their core business strategies and look to increase board-level oversight on climate change and sustainability.

Insurable Cities: The ClimateWise Principles Independent Review 2017 - Read More…

Catalysing Fintech for Sustainability: Lessons from multi-sector innovation

October 2017 – This report presents recommendations on how to design collaboration between multinationals, financial institutions and start-ups in order to better harness fintech to help solve sustainability challenges in the real economy.

Catalysing Fintech for Sustainability: Lessons from multi-sector innovation - Read More…

The City Innovation Platform: A guide to multi-sector collaboration on resilience

May 2017 – This guide looks at the City Innovation Platform (CIP), a two-day workshop in Dar es Salaam, Tanzania in 2016. The CIP explored how the public and private sectors can collaborate more effectively to deliver sustainable, financeable and insurable infrastructure projects. The workshop involved the active participation from a city network of senior Dar city officials, the insurance industry, asset managers and the private sector.

The City Innovation Platform: A guide to multi-sector collaboration on resilience - Read More…

Investing for resilience

December 2016 – Investing for Resilience explores how the insurance industry can contribute to redirecting substantial flows of capital into resilience enhancing investments. This includes helping in the development of a resilience rating system.

Investing for resilience - Read More…

Closing the protection gap: ClimateWise Principles Independent Review 2016

December 2016 – The ClimateWise Principles Independent Review 2016 of the six ClimateWise Principles finds a second year of improved scores for members of the insurance industry leadership group. Members have demonstrated their ongoing support for the zero carbon, climate-resilient transition yet the report finds a need for the industry to do more within its investment activities.

Closing the protection gap: ClimateWise Principles Independent Review 2016 - Read More…