If you work for the UN Environment Programme Finance Initiative (UNEP FI), the past few weeks have been a whirlwind.
From COP16's wrap-up to COP29 in Baku, followed by the Global Insurance Summit in Dublin, the climate agenda has been in full swing. Now, I'm writing this wrap-up from UNEP FI's global round table in Geneva - where insurance has taken centre stage.
The headline from COP29 in Baku was a hard-fought agreement for developed nations to provide $300bn annually in climate finance to developing countries by 2035. Many have criticised the pledge as underwhelming.
However, during the conference UNEP FI's Principles for Sustainable Insurance launched its report on transition planning through the Forum for Insuring Transition to Net Zero (FIT), aiming to close a key gap in how insurers manage sustainability risks.
"The report consolidates essential guidance for insurers to align the entire balance sheet with today's regulatory demands," said FIT Chair Butch Bacani.
Next stop: Dublin, where the Central Bank of Ireland (CBI) delivered a strong message at the Global Insurance Summit.
Deputy Governor Sharon Donnery emphasised the CBI's deepening climate commitment, stating that climate change affects every part of the bank's mandate—from financial stability to regulatory supervision. "The financial system must lead in driving capital toward sustainable activities," she stressed.
In Geneva, insurers dominated almost every panel at the UNEP FI Global Round Table. Aviva's sustainability chief, Claudine Blamey, opened with a call for national governments to adopt transition plans, calling them "the missing piece" for net-zero alignment. "Once national transition plans are in place, insurers can respond sector by sector," she said.
As the event continues, InsuranceERM will provide in-depth coverage, including interviews with sustainability chiefs from Aviva and Zurich, senior representatives from the UN, Costa Rica's insurance regulator, and WWF. Stay tuned for expert perspectives in the coming days.
Meanwhile, the climate campaign group Insure Our Future published its eighth annual insurer scorecard, ranking 30 major re/insurers on fossil fuel policies.
Generali topped the list, while Allianz and Zurich followed closely behind. Lloyd's of London and Berkshire Hathaway landed near the bottom with near-zero scores. The report urged stricter climate policies and regulatory action to drive change.
Back in Europe, Eiopa launched consultations on integrating biodiversity and sustainability risks into insurers' Solvency II obligations. It warned that nearly 30% of insurers' investment portfolios depend on at least one ecosystem service. Eiopa's proposals include sustainability risk plans aligned with regulatory frameworks to keep environmental risks firmly on the financial radar.
InsuranceERM also spoke with Insurance Europe President Frédéric de Courtois, who urged insurers to "be bold" despite climate uncertainties. He warned of the challenge of insuring emerging technologies without historical data and called for stronger public-private partnerships to manage risks effectively.
Finally, climate reporting also took centre stage at the GIRO 2024 conference in Birmingham, hosted by the Institute and Faculty of Actuaries (IFoA). Experts stressed actuaries' critical role in modelling uncertain futures and improving climate disclosures amid a maze of overlapping reporting standards.