TOGETHER WE ARE BUILDING A SUSTAINABLE FUTURE

Climate Change Roadmap | Environmental Charter

Insurers and long-term savings providers have long been at the forefront of research to better understand and prepare for risks resulting from impacts of the Earth’s changing climate. This hub hosts a collection of case studies, insights and reports to demonstrate how our industry is working together to adapt, innovate and invest in building a sustainable and financially resilient future.

The ABI Climate Change Roadmap

£0.9trn could potentially be made available from now to 2035 to invest in meeting Net Zero targets, subject to action from Government and regulators, as the UK’s insurance and long-term savings industry sets out its ambitious response to tackling climate change.

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ADAPT

Insurers and long-term savings providers have an integral role to play in helping society be as resilient as possible to the impacts of climate change. Firms are investing in new technology, adapting their own operations and working to support customers in the face of a changing climate

INNOVATE

As we collectively work to hasten net-zero emissions without off-setting by 2050, new opportunities have emerged which foster the innovation of green products and technologies. This green revolution is helping to power the mitigation work needed to reduce harmful emissions and uncouple carbon from economic growth.

INVEST

Insurers already invest in sustainable initiatives such as windfarms and solar power, which are a good match with their long-term liabilities. However there remain challenges to enabling institutional investors to better measure and manage their exposure to climate risk.

Our own Environmental Charter

At the ABI, we recognise the importance and urgency of addressing the climate crisis, particularly in light of the ABI Board’s priority of addressing climate change. We want to uphold the best standards internally to reduce our environmental impact, and are committed to continuously reviewing and improving the ABI’s own practices as we drive forward the climate agenda within the wider industry.

Read our commitments here

Reports

The ABI Climate Change Roadmap

On 7 July, the ABI launched a Climate Change Roadmap for the sector, that is a world first for a domestic insurance market. Including ambitious new targets, investment innovation and a revolution in green products and services, we believe the Roadmap is the most demanding and far-reaching carbon reduction plan of any insurance and long-term savings sector in the world.

Solvency II: KPMG Analysis Commissioned by the ABI

Read the latest report commissioned by the ABI, and produced by KPMG, in response to the Government’s consultation on Solvency II. The analysis sets out how changes to the Matching Adjustment and the Risk Margin mechanisms could free up £95bn for re-investment, as well as providing broader benefits for the economy, HM Treasury and customers. These changes to the Solvency II regime would still ensure the industry holds enough capital to withstand a 1-in-200-year shock and meet its obligations whilst managing its assets responsibly and safely.

Engaging with ESG: Climate Change

The long-term savings industry has a crucial role to play in decarbonising the economy, supported by a growing number of savers who want their money to drive positive change. This report published by the Pensions Policy Institute (PPI) explores the attitudes and approaches currently being implemented in relation to climate change and highlights areas where further support, guidance or intervention could be beneficial in order to improve engagement and implementation of appropriate risk management.