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The ClimateWise Principles

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

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 2018 Independent Review of member progress against the ClimateWise Principles witnessed the greatest year-on-year improvement since the revised ClimateWise Principles were introduced in 2014, with the mean group score increasing by six per cent.

In step with the marked uplift in regulatory interest, we have revised the ClimateWise Principles to align fully with the TCFD recommendations. The new ClimateWise Principles will come into effect from 2019 and will provide a comprehensive reporting framework for the insurance industry.

ClimateWise members have been at the forefront of climate-related disclosure for over a decade, voluntarily reporting against a large part of the TCFD recommendations. It is therefore a natural progression to align with the recommendations without losing the elements of ClimateWise reporting that fall outside the scope of TCFD but demonstrate the leadership shown by members, for example in informing public policy.

“The financial services sector is moving rapidly to incorporate climate change risks into business strategy, risk management processes and reporting. Regulators and business leaders, including ClimateWise members, are giving clear examples of what is expected of the financial sector in response to climate change. The following report outlines our members’ extensive activities and initiatives against the ClimateWise Principles. The Principles report and the updated Principles show the ambition of ClimateWise. ClimateWise members are taking steps to meet the challenges of climate change.”

Dominic Christian, Chair, ClimateWise; Global Chairman, Aon Benfield

“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.”

S&P Global

“ClimateWise members are already on the front foot with regards to implementing the TCFD recommendations. They have been voluntarily considering and disclosing their strategic response to climate change for a decade.”

Mary Schapiro, Special Advisor to the Chair of the Task Force on Climate-related Financial Disclosures (TCFD) and former Chair of the US Securities and Exchange Commission

 

Gearing up for Regulation2018 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