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Cambridge Institute for Sustainability Leadership

The ClimateWise Principles support ClimateWise members to disclose their specific response to the risks and opportunities of climate change to the financial markets.

ClimateWise Principles new

The ClimateWise Principles guide members’ contribution to the transition to a low carbon, climate-resilient economy and integrate a response to the climate risk protection gap – the growing divide between economic and insured losses – across their business activities.

All ClimateWise members are required to report annually on their individual actions, allowing members to benchmark progress against their peers. An annual, public review highlights the overall progress being made by the ClimateWise community.

The ClimateWise Principles, which have led the industry in climate disclosure since 2007, have been aligned with the Task Force on Climate-related Financial Disclosure (TCFD) Recommendations whilst retaining ambition to lead on informing public policy and raising awareness of climate change among customers and clients. The ClimateWise Principles 2020 marked our members’ second year of TCFD aligned reporting and saw a welcome 10 per cent increase in group score, suggesting members are well prepared for forthcoming mandatory disclosures.  The report features a foreword from CISL’s Patron, HRH The Prince of Wales who has long understood the importance of the insurance sector in the transition to net zero.

 

“ClimateWise members are leaders in climate-related disclosures having been reporting, independently benchmarking and sharing learnings from the industry for over ten years. The fantastic range of disclosures, at various stages of maturity, reflects the ClimateWise member commitment to learning and sharing their knowledge to enable full disclosure by the industry. 2021 will be a pivotal one for climate negotiations. The insurance industry is ready to play its part.”

Dominic Christian, Chair of ClimateWise and Global Chairman, Reinsurance Solutions, Aon

 

"Through our dual role as institutional investors and risk managers, the Insurance and Long-term Savings industry is uniquely placed to shape society’s response to climate change, which is why the ABI remains proud of our longstanding membership of ClimateWise."

"A 10% year-on-year increase in the sector’s performance against the ClimateWise principles will make a significant impact across the economy, especially as these principles align to the TCFD requirements. However, it is also clear from these findings that further progress is needed – and this will require a sustained effort across the sector. The ABI is committed to continuing to work with ClimateWise to drive collective action to both reduce the level of carbon emissions and make society more resilient to the threat of a changing climate."

Huw Evans, Director General, Association of British Insurers (ABI)

 

Climate Wise Principles 2022020 ClimateWise Independent Review

The ClimateWise Principles Independent Review 2020 shows member insurance industry firms have made significant progress in disclosing their preparedness and response to climate change.

The Review records a significant increase in average score - from 55 per cent in 2019 to 65 per cent in 2020 - for the ClimateWise group of organisations. The increase in group scores in 2020 has been predominantly driven by members demonstrating significant progress in the incorporation of climate change considerations into investment and underwriting strategies, high participation by members in climate stress tests and improvements made in the integration of climate risk into existing risk management frameworks.

 


 

Climate WisePrinciples 2019

2019 ClimateWise Independent Review

This year’s ClimateWise Principles Review is the first since the framework was aligned with the Taskforce for Climate-related Financial Disclosures (TCFD) and reflects the ambition of our members to be accountable on their climate response.

With the higher bar, the combined group score has decreased from last year. The 2019 scores now offer ClimateWise members a new benchmark against which to measure leadership and support one another’s progress.

 

 


Gearing up for Regulation

2018 ClimateWise Independent Review

The ClimateWise Principles Independent Review 2018 finds the largest year-on-year improvement in group mean score against the Principles since 2014, and confirms the full alignment of its updated Principles with TCFD recommendations.

The greatest change in mean group score was the improvement in Principle 2 (Inform Public Policymaking). The insurance industry plays an important role in understanding the financial impacts society is likely to face as a result of climate change and so raising awareness of these issues is vital.

 

 


ClimateWise Principles review2017 ClimateWise Independent Review

The ClimateWise Principles Independent Review 2017 finds that ClimateWise members continue to lead the way in responding to climate change, and continue to make steady progress. In 2017 the average scores increased from 50–60 per cent. One member reaching a new top score (under new marking criteria) of 91 per cent. The ClimateWise Principles have considerable overlap with the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosure (TCFD) and 2017 is the first year that the Principles have encouraged members to disclose against the TCFD recommendations by including its requirements in the scoring guidance (on an unscored basis initially). 

 

 


ClimateWise Principles Independent Review 2016

2016 ClimateWise Independent Review

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.

 

 

 


CW principles cover2015 ClimateWise Independent Review

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.

 

 

 

 

 

 


 

2014 ClimateWise Independent Review

2012 ClimateWise Independent Review

2011 ClimateWise Independent Review

2010 ClimateWise Independent Review

2009 ClimateWise Independent Review

2008 ClimateWise Independent Review