Global Insurance Consultant
• Insight
The road to climate investing – a journey for insurers
Climate change is a major issue for insurers as the industry signs up for net zero carbon commitments while also trying to maintain returns.
It is doubly important for the insurance industry, which is hit twice when it comes to tackling global warming. The bill for claims for weather-related damage is rising, while asset values which underpin the ability to meet liabilities will fall if the future climate risk is not removed.
So, how can insurers achieve the seemingly impossible and reduce their claims exposure while also reducing carbon risk in portfolios – and at the same time meeting their global responsibility towards net zero?
In an in-depth Q&A, Hilde Faber, Robeco’s global insurance consultant, answers several questions on how insurers can do this. She explains what the net zero commitment really means in practical terms, and why meeting the Paris Agreement through decarbonization matters so much for modern business.
One section examines what other insurers are doing, partly through membership of the Net Zero Asset Owner Alliance, of which half are insurance companies. The question of how insurers can actually measure high carbon in their portfolios is tackled in depth, along with the vexed issue of including Scope 3 emissions.
If optimizing insurer considerations and implementing net zero sounds contradictory, Faber shows how this can be done in the kind of buy-and-maintain portfolio that many insurers embrace. The regulatory view of this issue is addressed, along with what it means for future investment performance, assessing risk and meeting disclosure requirements.
Keep up with the latest sustainable insights
Join our newsletter to explore the trends shaping SI.
Important information
THIS WEBSITE IS SOLELY INTENDED FOR PROFESSIONAL INVESTORS, WHICH HAS THE MEANING ASCRIBED TO IT IN THE SECURITIES AND FUTURES ORDINANCE (CAP. 571 OF THE LAWS OF HONG KONG) AND ITS SUBSIDIARY LEGISLATION. Investment involves risks. Past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute investment advice or an offer or solicitation to buy or sell in any securities or to adopt any investment strategy. Investors should not base their investment decisions solely on the information provided on this website and are advised to seek independent advice (including advice on tax implications) before making any investment decisions. Investors should ensure they fully understand the risks associated with the investment products and should also consider their own investment objectives and risk tolerance level. The investment decision is yours. You should not invest unless the intermediary who sells you the investment products has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. Please refer to the relevant offering documents or other legal documents for further details including the risk factors. This website is published by Robeco Hong Kong Limited which is regulated by the Hong Kong Securities and Futures Commission (“SFC”) (CE No. APU851). This website has not been reviewed by the SFC. No assurance can be given that the investment objective of any investment products will be achieved. No representation or promise as to the performance of any investment products or the return on an investment is made. The value of investments may fluctuate. Past performance, projections, or forecasts included in this website should not be regarded as guarantees or indications of future performance, and no express or implied warranty is provided. The contents of this website are based on sources believed to be reliable, but due to the nature of information delivery technology and the necessity of using multiple data sources, including third party content, their accuracy is not guaranteed. The opinions expressed are as of the date shown above and may change as market conditions evolve, and are subject to change without notice. These opinions may differ from those of other Robeco investment professionals. Robeco accepts no liability for any direct, indirect, or consequential loss arising from the use of this material or any comments, opinions, or estimates contained herein. Robeco has no duty to update this website or any website content. Materials on this website may not be reproduced, distributed, or published without prior written permission from Robeco. Unless otherwise specified, Source: Robeco.
