INSURERS’ INVESTMENTS IN THE CARBON TRANSITION
As the COP26 summit highlighted, global finance will have a vital role to play in efforts to limit global warming and mitigate the impact of climate change. The insurance industry is already making great strides to ensure that the considerable capital under its supervision is deployed to support positive environmental action and help the world transition to a low carbon economy. But these are still early days and several important questions still remain to be answered before climate considerations are fully addressed.
In this report, a collaboration between Insurance Asset Risk and J.P. Morgan Asset Management, we aim to help insurers think through the complex questions with fresh data and industry insights. The focus of our research has been on interviews and roundtables, which provided us with considerable insight into insurers' views on climate risk and carbon transition. The answers we received revealed a great desire and motivation across the industry to act on climate change. Together, we can – and must – make a difference.
"Perhaps the most fundamental question surrounds the best way for insurers to incorporate environmental considerations into strategic asset allocation methodologies, especially given the move across the industry to commit to “net zero” carbon emissions in the coming years."
Head of International Global Insurance Solutions,
J.P. Morgan Asset Management