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CLIMATE CHANGE ROADMAP

The UK’s Insurance and Long-term Saving sector is the fourth largest in the world and the largest in Europe. We will play a crucial role in tackling Climate Change.

ABI members:

  • Hold £1.6trillion of invested assets across the globe and pay £46m in insurance claims every day in the UK, making our sector crucial to the success of any strategy to finance the infrastructure and develop the nature-based solutions for Net Zero.
  • promote resilience and risk management for those impacted by the physical risks posed by climate change
  • interact with savers, customers and businesses across the UK to manage the transition risks that come from adapting society to decarbonisation

This gives our sector a central role in in delivering the Government’s forthcoming Net Zero Strategy and helping deliver on the international commitments that will be made at COP26 – as both financial investors and enablers.

This Roadmap focusses primarily on our sector’s role in supporting the delivery of the UK’s Net Zero strategy and meeting its carbon budgets. It focusses on areas where the ABI’s diverse membership can collaborate to drive meaningful action. Ultimately, a problem on the scale of climate change can only be tackled jointly between networks of sector peers acting in tandem with local and national policymakers, and civil society. Therefore, this Roadmap seeks to identify where ABI members are taking action and where further action is needed, but also where we will need to work collaboratively beyond our sector to achieve the change needed.

This Roadmap, organised by four themed pillars, is intended to:

  • set out the new commitments our sector is making to tackling climate change
  • confirm how we will make further progress and how we can measure its impact
  • allow ABI members to understand what best practice on climate change and environmental sustainability looks like
  • identify where collective action across the sector and collaboration with policymakers, regulators, other sectors and industry partners can drive further change
  • identify actions Governments and regulators can take to maximise the impact of industry action and enable us to do more while continuing to provide essential insurance and long-term saving products that keep society financially resilient
  • allow scrutiny of our approach and enable the many stakeholders we work with to identify where we could make stronger commitments or take more action

It is not the final word on the topic – the ABI will be reviewing and refreshing this Roadmap each year, to ensure it remains consistent with scientific evidence on GHGs, biodiversity and nature conservation and that it reflects the UK Government’s Net Zero strategy, the international agreements made at COP26 and the outputs of the recently launched Taskforce for Nature-related Financial disclosure (TFND).

A summary of the four pillars can be found below.

Pillar One: Meeting Net Zero by 2050

The UK Insurance and Long-term Savings sector is committed to
reaching Net Zero by 2050 and to the global target of a 50% reduction in emissions by 2030 – in line with the Intergovernmental Panel on Climate Change (IPCC)’s Paris Climate Goals.

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Pillar Two: Unleashing Investment Capacity

The industry has a key role in providing the scaled investment capacity that will be needed to phase out carbon-intensive activities and replace them with sustainable and renewable innovations.

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Pillar Three: Sustainable Industry Operations

The Insurance and Long-Term Savings sector aims to reach Net Zero within its own directly controlled operations by 2025. By 2030, we aim to have engaged pro-actively with suppliers to include supply chain emissions within the scope of the sector’s target of reducing overall emissions by 50%.

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Pillar Four: Helping Society Adapt

We can also play a wider role in helping the customers and stakeholders that we work with adapt to a changing climate – helping them take action to reduce emissions, mitigate the impact of temperature rises and become more resilient to the effects of a changing climate.

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