AN INEVITABLE ENCOUNTER: SUSTAINABLE INVESTING AND INSURANCE PORTFOLIOS
It is inevitable, that sustainability – one of the fastest growing and biggest trends in investment management – would blaze a trail to one of the largest asset owners, the approximately $26trn global insurance industry. This important crossroads also has the potential to be highly impactful for insurance portfolios, asset managers, corporate behaviour, financial markets and society.
As insurers increase their focus on sustainability, they bring their own unique perspective. For many, environmental, social and governance (ESG) considerations are another layer of general risk management; others may be more focused on potential ESG-related changes in regulation across the industry. And while ESG implementation is relatively advanced in equity investing, insurance portfolios are overwhelmingly invested in fixed income, presenting some near-term challenges but great potential to make an impact in the future.
This report is a collaborative effort between J.P. Morgan Asset Management, Insurance Asset Risk and executives across the insurance industry to help insurers think through complex questions about incorporating ESG and measuring its success with fresh data and industry insights.
