5 February 2025 - The ClimateWise Principles Independent Review 2024 highlights progress and challenges for insurance industry members reporting against new, ambitious principles.
Press Release
ClimateWise - the global insurance industry leadership group founded in 2007 and facilitated by the University of Cambridge Institute for Sustainability Leadership (CISL) - has released its regular annual report on how its members have performed against its jointly agreed Principles, shortly after having raised the ambition of those Principles to drive further action in the insurance industry. ClimateWise is in its 16th year of reporting against the ClimateWise Principles disclosure framework, aligned in 2019 with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
If 2023 could be characterised as a year of essential challenge, with the Intergovernmental Panel on Climate Change (IPCC) report revealing that the world was not on track to achieve the 1.5-degree warming targets, then 2024 saw the insurance industry and its regulators intensify efforts in facing up to the challenge. Amid the evolving ecosystem of regulatory and reporting change, the insurance industry continues to work through partnerships like ClimateWise to develop a better understanding of risk, educating the public and developing risk mitigation strategies for both climate and nature issues.
The 2024 ClimateWise report represents a significant step for the industry, being the first to align with new Principles developed by its members in 2023. These Principles build on the TCFD framework and incorporate enhanced disclosure requirements, including the Corporate Sustainability Reporting Directive (CSRD), Taskforce on Nature-related Financial Disclosures (TNFD) and International Sustainability Standards Board (ISSB).
The new Principles have a broader scope and higher benchmark standards and represent the efforts and commitment of the industry to developing and reporting under the evolving disclosure environment. While scores have understandably declined as our members adjust to new requirements, we have also seen enhanced:
- Integration of climate considerations in strategic planning;
- Adoption of nature and biodiversity risks into governance and risk management frameworks; and
- Reporting by members, supported by evidence-based examples of how they are evolving their business practices.
As we go forward, we expect that ClimateWise members will continue to adapt and align to the Principles they have created, just as we have seen in previous years.
Sid Miller, Programme Director, ClimateWise said: "To address the challenges of the changing climate and nature regulatory environments, ClimateWise members have reported to a new set of Principles that support the ongoing adaptation of their organisations and the tracking of progress across the Insurance sector. The new Principles represent a strong commitment by ClimateWise" members to transition to a sustainable economy.
Kevin O’Donnell, President and CEO of RenaissanceRe and Chair of ClimateWise said: "Our new ClimateWise Principles have a broader scope and higher benchmark standards, and I want to recognise the efforts and commitment of our members in developing and reporting under this new method."