The insurance industry is committed to continue contributing to collective efforts to make the global economy more sustainable. Aside from their efforts to enhance adaptation and the mitigation of climate risks, insurers also contribute through their role as investors in sustainable assets.

 

Policymaker action in several areas can enable insurers to continue to fulfil their role and do even more. They can:

 

• Indicate clearly defined transition trajectories to facilitate the transformation of the real economy.
• Help address the current lack of both suitable sustainable assets and reliable environmental, social & governance (ESG) data on the assets themselves.
• Support insurers’ smooth, stable transition to financial sustainability through dialogue and appropriate testing of any new proposals.
• Ensure flexibility and proportionality are reflected in the supervision of climate risks.
• Where relevant, help develop suitable tools, such as climate-related scenario analysis and stress testing, to gain further insight into the financial risks arising from climate change.