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TOGETHER WE ARE BUILDING A SUSTAINABLE FUTURE

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.

His Royal Highness The Prince of Wales message to the Insurance and Long-Term Savings Industry

  

Climate change demands that insurance changes

To mark the 2022 Climate Change summit and the publication of an updated ABI Climate Change Roadmap, the ABI's Director General, Hannah Gurga and Andy Briggs, Group CEO of Phoenix and Chair, ABI Board Sub-group on Climate Change, have written on how the insurance industry must rise to the challenge of climate change. 

Read their thoughts here

  

  

  

ADAPT

People in the park

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 Supply Chain Guidance 

On 8 June 2022, the ABI published ‘Good Practice Guidance on engaging with supply chains for Insurance and Long-Term Savings Providers’ which takes forward the first stage of our four pro-active steps set out in our Roadmap.

Read the guidance  

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 2021 Climate Change Roadmap

On 7 July 2021, 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.