UNEP Principles for Sustainable Insurance’s guide on environmental,
social and governance (ESG) risks for the insurance industry:
An overview with a special focus on marine insurance
PSI-IUMI global webinar
6 October 2020
Butch Bacani
Programme Leader
UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI)
The triple role of the insurance industry
in sustainable development
2
Insurer role
(financial risk management)
Risk manager
role
(physical risk management)
Sustainable development challenges & opportunities
Investor role
(asset management)
Over USD 30 trillion
global assets
under management
Over USD 5 trillion
world premium volume
The Principles for Sustainable Insurance:
A global roadmap to drive systemic change
Public
Governments, regulators &
other key stakeholders
Clients & business partners
Clients, suppliers, agents, brokers,
insurers, reinsurers
Core businessCompany strategy
Risk management
Insurance underwriting
Product development
Claims management
Sales & marketing
Investment management
3
Principle 1:
We will embed in our
decision-making
environmental, social and
governance issues relevant
to our insurance business.
Principle 3:
We will work together
with governments,
regulators and other key
stakeholders to promote
widespread action across
society on environmental,
social and governance
issues.
Principle 2:
We will work together with
our clients and business
partners to raise
awareness of
environmental, social and
governance issues, manage
risk and develop solutions.
Principle 4:
We will demonstrate
accountability and
transparency in regularly
disclosing publicly our
progress in implementing
the Principles.
PSI membership by country of domicile
PSI signatory company (e. g. insurers, reinsurers, brokers,
catastrophe risk modelling firms, specialist service providers)
PSI supporting institution (e.g. insurance associations,
insurance initiatives, insurance regulators and supervisors,
academia, civil society organisations)
Over 150 members and growing
Insurers representing about 25% of world premium + USD 14 trillion in assets under
management
Largest collaborative initiative between the UN and the insurance industry
4
Objectives of the guide
Session 1
First guide for the global insurance industry to manage
environmental, social & governance (ESG) or sustainability risks
Aims:
1. Provide optional guidance to insurance industry participants in
developing approaches to assess ESG risks in non-life insurance
business transactions, particularly industrial and commercial insurance
business
2. Support clients, intermediaries and other stakeholders in facilitating
ESG-related information which might be required during the ESG due
diligence of transactions
3. Highlight the materiality of ESG risks to various lines of business and
economic sectors, including characteristics which might affect the ability
to assess and mitigate such risks
4. Address growing concerns by stakeholders across society (e.g.
NGOs, investors, governments) on ESG risks and articulate the
peculiarities of the insurance business
5. Demonstrate the valuable role the insurance industry plays in the global
economy and society, and strengthen the industry’s contribution to
sustainable development
PSI Project Team
7
Multi-year global consultation process to develop the
PSI ESG guide for non-life insurance
Analysis & review by
PSI Project Team
Global ESG survey on
non-life underwriting
Discussions at PSI events
worldwide
Public consultation on draft ESG
guide
Interviews with industry
experts & stakeholders
8
9
10
ESG heat map and economic sectors
Session 1
ESG heat maps across economic sectors and lines of business
CRITERIA THEME RISK CRITERIA RISK MITIGATION EXAMPLES & GOOD PRACTICE
ECONOMIC SECTORS Principles
Agriculture /
Livestock
Agriculture /
Fishing
Agriculture /
Paper & ForestryChemicals Defense
Electronics /
TechnologyEnergy
Construction /
Coal
Construction /
Hydro Dams
Construction /
Nuclear
Exploration
& Construction
/ Oil & Gas
Production
of Fuels / Derivatives
from Oil & Gas
Finance
(depending on client
and/or transaction
)
Gambling
Healthcare /
Pharma / Biotech / Life
Science
Infrastructure /
Construction
Food/Beverage
Manufacturing
Garment
ManufacturingReal Estate
Utilities
(Waste & Water)
MiningTransport /
Shipping / Logistics
SDGsUNGC PSI PRI
Environment
Climate change
Air pollution, greenhouse gas emissions, and transition risks
Disclosure of climate-related emissions in operations and/or products
(e.g. CO2, CH2, N20, HFCs, PCFs, SF6)13 8 4 6
Breakdown of fuel/material/carbon intensity mix relevant to the client or
transaction (e.g. power generating mix or by economic sector intensity)7, 12 7, 8, 9 1, 2, 3 3
Environmental & social impact assessment (ESIA) covering negative
health impacts, mitigation and decommissioning where relevant3.1 7, 8, 9 1, 2, 3 1, 5
Decarbonisation transition plan/targets, customers fitting new emission
mitigation technology, TCFD disclosures7 7, 8, 9 1, 2, 3 1, 5
Physical risks (e.g. heat, wildfire, extreme precipitation, flood,
windstorm, tropical cyclones, sea level rise, water stress)
Nature-based solutions (e.g. sustainable flood or coastal defence
management, broader climate resilience adaptation plans)9, 13 7, 8, 9 1, 2, 3 2
Environmental degradation
Exposure to unconventional mining practices (e.g. mountain top
removal, riverine tailings dumping, deep sea mining)
Involvement in initiatives: Extractive Industries Transparency Initiative,
International Council on Mining & Metals, Kimberley Process (diamonds)
7, 9,
12, 137, 8 1, 2 2, 5
Deforestation or controversial site clearance (e.g. palm oil on peatlands
or fragile slopes, illegal fire clearance/logging, biodiversity loss, dam construction)
Certification for palm oil, paper, etc. Dam construction standards: IHA
Hydropower Sustainability Assessment Protocol, UNEP Dams & Development, Equator Principles
12, 15 7, 8 1, 2 4, 5, 6
Soil pollutionESIA covering possible negative health impacts, mitigation measures
and decommissioning plans where relevant3.1 7, 8 1, 2, 3 1.5
Water pollution/overconsumptionWater management practices (e.g. tackling quality, scarcity,
overconsumption). Effective ESIA process covering water pollution. External audits/certification
6, 13 7, 8 1, 2, 3 3, 6
Protected sites/species
Impacts on World Heritage Sites or other protected areas
ESIA that covers impacts on endangered species and sites including
mitigation. Specialist lists: Ramsar, UNESCO World Heritage Sites, High Conservation Value sites. PSI-WWF-UNESCO guide to protect
World Heritage Sites
11, 15 7, 8 1, 2, 3 2, 5
Impacts on species on IUCN Red List of Threatened SpeciesESIA that covers impacts on endangered species and sites including
necessary mitigation measures 14, 15 7, 8 1, 2, 3 2, 5
Unsustainable practices
Exposure to unconventional energy practices (e.g. Arctic oil, hydraulic
fracturing, tar sands, deep sea drilling)
Various energy initiatives: IPIECA, IFC EH&S Guidelines, Energy &
Biodiversity Initiative for Oil & Gas, Arctic Council, Oil Sands Leadership Initiative
9 7, 8, 9 1, 2, 3 4
Illegal fishing vessels, controversial fishing practices or aquaculture
techniques
PSI-Oceana guide on illegal, unreported & unregulated (IUU) fishing,
IUU fishing lists, Aquaculture/Marine Stewardship Council certification
12,
14, 177, 8 1, 2, 3 5, 6
Plastic pollutionPSI guide on the risks of plastic pollution, marine plastic litter and
microplastics to the insurance industry
3, 6,
12, 147, 8, 9 1, 2, 3 1, 2, 3
Animal welfare/testing
Live transport over 8 hours or poor conditions or illegal/exotic animals
(dead or alive)
Live transport over 8 hours must hold certificate including training on
ventilation/temperature. Good conditions on food, water, spacing, lighting, etc.
CHANGE TO RED!
2, 12,
157, 8 1, 2, 3 2
Controversial living conditions or use of chemicals/medicines (e.g.
overuse of antibiotics)
Relevant certification for farming or ethical animals treatment during
clinical treatments12, 15 7, 8 1, 2, 3 2, 5
Lack of anaesthetic or distress reducing techniquesCompliance with Guiding Principles on Replacement, Reduction &
Refinement12, 15 7, 8 1, 2, 3 2, 5
Use of wild subjects or Great Apes in testing As above 12, 15 7, 8 1, 2, 3 2, 5
Social
Human rights
Child labour
Policy/statement on protecting and promoting human rights, prohibits
child labour, shared with suppliers, regular audits and public findings (e.g. ILO Conventions, Universal Declaration of Human Rights)
4, 8,
10, 121, 2, 5 1, 2, 3 2, 3, 5
Human traffickingHuman rights policy that includes a statement on protecting and
promoting human rights and prohibits human trafficking
8, 10,
121, 4 1, 2, 3 2, 3, 5
Forced labour Human rights policy that includes a statement on protecting and
promoting human rights and prohibits forced labour
8, 10,
121, 4 1, 2, 3 2, 3, 5
Forced resettlement (including land/water rights for native people, land
grabbing)
Free, prior & informed consent (FPIC) achieved. Effective
environmental & social impact assessment (ESIA) process covering consultation, resettlement, compensation aspects
3, 16 1, 2 1, 2, 3 6
Poor worker safety record (e.g. worse than sector average record on
accidents)
Effective occupational health & safety policy that defines safety
responsibilities and prevention measures to minimise fatalities, injuries and health impacts
3, 12,
161, 3 1, 2, 3 2, 3, 5
Violation of worker rights (e.g. discrimination, collective bargaining)Code of conduct that outlines company's commitment to respect
workers' rights
8, 10,
121, 4 1, 2, 3 2, 3, 5
Misconduct of security personnel (e.g. physical harm to people, human
rights abuses)Whistle-blower channel to report such violations 3, 16 1 1, 2, 3 6
Controversial weapons Controversial weapons exposure (e.g. UN conventions) Anti-Personnel Mine Ban Convention, Convention on Cluster Munitions 11 1 1, 3, 4 2, 3
Governance
Bribery & corruption Illegal and unethical paymentsCode of conduct and anti-bribery training programme for all employees.
Whistle-blower channel to report cases of bribery & corruption16, 17 10 4 3, 4
Poor corporate governanceAnti-competitive practices, violations of antitrust laws, unethical
conduct, unethical tax approachCode of conduct that outlines compliance with antitrust laws
10,
16, 1710 4 2, 5
Poor product safety & quality Unethical conduct or negative health impact on customers 3, 16 1, 7 1, 2, 3 2, 5
11
ESG heat map and economic sectors
Session 1
Heat map of ESG risks across lines of
marine insurance business: A closer look
ESG risks
Marine Hull & Machinery (H&M)
Insurance
Protection & Indemnity (P&I)
Insurance
Marine Cargo Insurance
12
ESG heat map and economic sectors
Session 1
Theme Risk criteria Risk mitigation examples & good practice
Climate change
Air pollution, greenhouse gas emissions, and transition risks
Disclosure of climate-related emissions in operations and/or products (e.g. CO2, CH2, N20, HFCs, PCFs, SF6)Breakdown of fuel/material/carbon intensity mix relevant to the client or transaction (e.g. power generating mix or by economic sector intensity)Environmental & social impact assessment (ESIA) covering negative health impacts, mitigation and decommissioning where relevantDecarbonisation transition plan/targets, customers fitting new emission mitigation technology, TCFD disclosures
Physical risks (e.g. heat, wildfire, extreme precipitation, flood, windstorm, tropical cyclones, sea level rise, water stress)
Nature-based solutions (e.g. sustainable flood or coastal defence management, broader climate resilience adaptation plans)
Environmental degradation
Exposure to unconventional mining practices (e.g. mountain top removal, riverine tailings dumping, deep sea mining)
Involvement in initiatives: Extractive Industries Transparency Initiative, International Council on Mining & Metals, Kimberley Process (diamonds)
Deforestation or controversial site clearance (e.g. palm oil on peatlands or fragile slopes, illegal fire clearance/logging, biodiversity loss, dam construction)
Certification for palm oil, paper, etc. Dam construction standards: IHA Hydropower Sustainability Assessment Protocol, UNEP Dams & Development, Equator Principles
Soil pollutionESIA covering possible negative health impacts, mitigation measures and decommissioning plans where relevant
Water pollution/overconsumptionWater management practices (e.g. tackling quality, scarcity, overconsumption). Effective ESIA process covering water pollution. External audits/certification
Protected sites/species
Impacts on World Heritage Sites or other protected areas
ESIA that covers impacts on endangered species and sites including mitigation. Specialist lists: Ramsar, UNESCO World Heritage Sites, High Conservation Value sites. PSI-WWF-UNESCO guide to protect World Heritage Sites
Impacts on species on IUCN Red List of Threatened Species
ESIA that covers impacts on endangered species and sites including necessary mitigation measures
Unsustainable practices
Exposure to unconventional energy practices (e.g. Arctic oil, hydraulic fracturing, tar sands, deep sea drilling)
Various energy initiatives: IPIECA, IFC EH&S Guidelines, Energy & Biodiversity Initiative for Oil & Gas, Arctic Council, Oil Sands Leadership Initiative
Illegal fishing vessels, controversial fishing practices or aquaculture techniques
PSI-Oceana guide on illegal, unreported & unregulated (IUU) fishing, IUU fishing lists, Aquaculture/Marine Stewardship Council certification
Plastic pollution PSI guide on the risks of plastic pollution, marine plastic litter and microplasticsto the insurance industry
Animal welfare/testing
Live transport over 8 hours or poor conditions or illegal/exotic animals (dead or alive)
Live transport over 8 hours must hold certificate including training on ventilation/temperature. Good conditions on food, water, spacing, lighting, etc.
Controversial living conditions or use of chemicals/medicines (e.g. overuse of antibiotics)
Relevant certification for farming or ethical animals treatment during clinical treatments
Lack of anaesthetic or distress reducing techniques
Compliance with Guiding Principles on Replacement, Reduction & Refinement
Use of wild subjects or Great Apes in testing As above N/A N/A N/A
Hull P&I Cargo
13
ESG heat map and economic sectors
Session 1
Theme Risk criteria Risk mitigation examples & good practice Hull P&I Cargo
Human rights
Child labour
Policy/statement on protecting and promoting human rights,
prohibits child labour, shared with suppliers, regular audits and
public findings (e.g. ILO Conventions, Universal Declaration of
Human Rights)
Human traffickingHuman rights policy that includes a statement on protecting
and promoting human rights and prohibits human trafficking
Forced labour
Human rights policy that includes a statement on protecting
and promoting human rights and prohibits forced labour
Forced resettlement (including land/water
rights for native people, land grabbing)
Free, prior & informed consent (FPIC) achieved. Effective
environmental & social impact assessment (ESIA) process
covering consultation, resettlement, compensation aspects
Poor worker safety record (e.g. worse
than sector average record on accidents)
Effective occupational health & safety policy that defines safety
responsibilities and prevention measures to minimise fatalities,
injuries and health impacts
Violation of worker rights (e.g.
discrimination, collective bargaining)
Code of conduct that outlines company's commitment to
respect workers' rights
Misconduct of security personnel (e.g.
physical harm to people, human rights
abuses)
Whistle-blower channel to report such violations
Controversial weaponsControversial weapons exposure (e.g. UN
conventions)
Anti-Personnel Mine Ban Convention, Convention on Cluster
Munitions
14
ESG heat map and economic sectors
Session 1Theme Risk criteria Risk mitigation examples & good practice Hull P&I Cargo
Bribery &
corruptionIllegal and unethical payments
Code of conduct and anti-bribery training programme for
all employees. Whistle-blower channel to report cases of
bribery & corruption
Poor corporate
governance
Anti-competitive practices, violations of
antitrust laws, unethical conduct, unethical tax
approach
Code of conduct that outlines compliance with antitrust
laws
Poor product
safety & quality
Unethical conduct or negative health impact on
customers
Se ssion 1
Have your say“Managing risks is at the heart of any insurer. The sustainability guide for non-life underwriting
transactions raises the industry’s ambition to manage environmental, social and governance
risks and helps to achieve the UN Sustainable Development Goals and the climate target of the
Paris Agreement.
“We are proud to share our long-standing expertise in integrating sustainability into daily business
with peers and partners, who might stand at the beginning of this important development. Driving a
low-carbon and inclusive economy to secure our future only will succeed if all players are
truly committed and create measurable contributions.”
“The latest Intergovernmental Panel on Climate Change (IPCC) report shows that there’s a world of a
difference—in terms of adverse economic, social and environmental impacts—between a world with
an average temperature increase of 2 degrees since pre-industrial levels, and one with 1.5 degrees.
As risk managers, insurers and investors, no industry has the capacity to keep us safe other
than the insurance industry.
“The PSI’s global sustainability guide is a clarion call for the ambitious action needed… As
financial scientists, we need the insurance industry to complete the IPCC report by translating
the latest climate change science into the language of risk that the world can fully understand
and tackle with radical collaboration and stubborn optimism.”
Leaders’ perspectives on the PSI global ESG guide
16
Global mean temperature increase by 2100 since
pre-industrial levels: What is our trajectory?
Source: Climate Action Tracker(December 2019 update)
17
Source: World Resources Institute
A 1.5°C vs. a 2°C world: Half a degree of warming is a world of a difference (based on IPCC special report on 1.5°C)
PSI project to pilot the recommendations of the Financial Stability Board’s (FSB)
Task Force on Climate-related Financial Disclosures (TCFD) in insurance portfolios
22 leading insurers representing > 10% of world premium & USD 6 trillion assets
PSI-TCFD pilot project Will develop new generation of approaches and tools to assess climate-related physical, transition and litigation risks in insurance portfolios (focus on climate scenario analysis)
Progress update: 9 September 2020 / Final report: End of 2020
19
TCFD implementation: Better management of climate-related risks
through enhanced, forward-looking climate risk analysis
PSI-TCFD pilot project to
assess climate-related
physical, transition and
litigation risks in the context of
insurance portfolios (focus on
scenario analysis)
Source: 2◦ Investing Initiative
20Source: 2◦ Investing Initiative
Raising the insurance industry’s climate ambition
From enhancing climate risk analysis to
aligning insurance and investment
portfolios with the 1.5°C target of the
Paris Agreement
21
22
What about insurance portfolios? How can we align them with the Paris Agreement?
1.5°C target of Paris
Agreement
Investment portfolio
Insurance portfolio
Insurance
company
23
24
Biodiversity & ecosystem risks
Post-2020 Global Biodiversity
Framework to be adopted at 2021
UN Biodiversity Conference (COP15)
(May 2021)
Task Force for Nature-related Financial
Disclosures (TNFD): Reporting
frameworks to be developed by 2021,
tested in 2022
Nature loss a planetary emergency
Humanity has wiped out 83% of wild mammals and half
of plants
75% of Earth’s land surface significantly altered by
human actions (e.g. loss of 85% of wetland areas)
66% of the ocean area experiencing multiple impacts
from people (e.g. fisheries, pollution, chemical changes
from acidification)
Biodiversity loss that can result from climate change
affects ecosystems’ resilience negative spiralling
loop
COVID-19, a zoonotic disease, related to illegal wildlife
trade and environmental degradation
World Economic Forum (WEF) estimates USD 44 trillion
of economic value generation (more than 50% of global
GDP) moderately or highly dependent on nature
Action for nature-positive transitions could generate up
to USD 10.1 trillion in annual business value and create
395 million jobs by 2030, per the WEF
Sources: TNFD, UN
Thomas Buberl
CEO
AXA Group
25
Other PSI collaborative initiatives addressing
specific ESG risks relevant to marine insurers
Guide to protect World
Heritage Sites (biodiversity
loss & ecosystem degradation)
Guide to tackle Illegal,
unreported &
unregulated fishing
Guide to tackle
plastic pollution
Insurers protecting World Heritage Sites
26
Over 1,100 natural, cultural, and mixed World Heritage Sites across the globe
Natural World Heritage Sites provide economic, social and environmental benefits but almost
half are threatened by harmful industrial activities. Total of about 250 natural World Heritage
Sites in over 100 countries less than 1% of Earth’s surface
Insurance industry commitment to protect World Heritage Sites across risk management,
insurance and investment activities launched at 42nd Session of UNESCO World Heritage
Committee in Bahrain (July 2018)
27
Key actions as risk managers,
insurers and investors
Accessing data and
understanding best practice
Raising awareness and
supporting widespread action
Developing and implementing a
World Heritage Sites risk
approach
Protecting World Heritage Sites
proactively
Engaging clients and investee
companies
Risks
Reputational risk
Increased exposure to liabilities
and risk of non-compliance with
international standards
Potential increased risk of claims
“Severe-risk” sectors: Oil & gas,
mining, large-scale hydropower
“High-risk” sectors: Logging,
fishing, agriculture, plantations,
large-scale infrastructure
(pipelines, roads mega-ports)
Insurers protecting World Heritage Sites
PSI-WWF-UNESCO global insurance industry guide to
protect World Heritage Sites (Oct 2019)
28
29
Insurers tackling illegal, unreported & unregulated
(IUU) fishing
Pirate fishing—or illegal, unreported & unregulated (IUU) fishing—costing global economy USD 10 to 23.5 billion yearly
About 1 in 5 fish caught illegally, posing serious threats to environment and global fish supplies
IUU fishing risks: Increased claims, other crimes (e.g. human
trafficking, slavery, transport of illegal arms or drugs), fraud, legal
liabilities, reputational damage
IUU fishing contributes to overfishing and destruction of marine habitats and ecosystems, and marine pollution
PSI-Oceana global guide to
tackle IUU fishing (Feb 2019)
30
31
Unwrapping the risks of plastic pollution, marine plastic litter
and microplastics to the insurance industry (Nov 2019)
Only 9% of 9 billion tonnes of plastics ever produced have
been recycled; plastic packaging about half of world’s plastic
waste
Rapidly increasing levels of marine litter negatively affecting
marine biodiversity, ecosystems, animal well-being,
societies, livelihoods, fisheries, maritime transport,
recreation and tourism, and economies
Microplastics added into products or generated during their
lifecycle are found along the food chain; potential to
negatively affect human health and food safety
Plastics are made from fossil fuels and account for 20% of
total oil consumption. Their manufacture, recycling and
incineration is energy intensive = high carbon emissions
32
How the risks associated with plastic pollution affect the insurance
industry and 10 recommendations to manage those risks
33
Unwrapping the risks of plastic pollution, marine plastic litter
and microplastics to the insurance industry (Nov 2019)
34
Prosperity for all on a healthy planet
35
PSI collaborative initiative to develop
“Insurance Sustainable Development Goals”
What are the links between insurance products & solutions
and the UN Sustainable Development Goals (SDGs)?
36
SDGs
Lack of systematic mapping of insurance products & solutions
vs SDGs, clear narrative, methods to
measure impact
Lack of understanding of types of insurance products & solutions needed (existing &
new) to support SDGs, and how they can be developed & brought
to scale
No global goals or targets for the
insurance industry linking its insurance
portfolios to the SDGs
• Provide agriculture insurance to X% more of the 230 million uninsured smallholder farmers globally by 2030Agriculture
• Provide protection insurance and health risk management to X number more impaired lives by 2030Health
• Increase area of natural ecosystem insurance coverage by X (surface area / number of ecosystems / types of biogeographic zones / % of protected areas) by 2030
Natural ecosystems
• Reduce greenhouse gas emissions by X% in motor portfolio by 2030Motor
• Reduce greenhouse gas emissions by X% of energy producers and consumers covered by 2030Property (Energy)
Early ideas of “Insurance SDGs”
38
Map existing
insurance products & solutions vs. SDGs (identify
gaps, potential tradeoffs)
Select Subset of priority SDGs &
articulate how they
connect to other SDGs
Develop Insurance
SDGs: Ambitious,
quantitative, insurance goals at
global level per priority
SDG
For each Insurance
SDG, develop industry roadmap with key factors,
strategies & actions
For each Insurance SDG, set
insurance portfolio targets at insurance company
level
Develop methods & toolkits for industry &
stake-holders to measure
progress in achieving
SDGs
Mapping Prioritising
Insurance
SDGs
(global)
Industry
roadmapsCompany
targets
Methods
& toolkits
Proposed process to develop “Insurance SDGs”
39
How about developing
“Marine Insurance SDGs”?
The triple role of the insurance industry
in sustainable development in practice (examples)
40
Insurer role
(financial risk management)
Risk manager
role
(physical risk management)
Sustainable development challenges & opportunities
Investor role
(asset management)
PSI guide to
better
prevent and
reduce ESG/
sustainability
risks in
insurance
business
PSI TCFD insurance
pilot to better
understand and
manage climate
risks
PSI “Insurance
SDGs” initiative
to develop and
increase
penetration of
insurance
products &
solutions that
support the SDGs
UN-convened Net Zero
Asset Owner Alliance to
align investment
portfolios with Paris
Agreement
41
UNEP’s Sustainable Insurance Forum for Supervisors (SIF)
SIF Global network of insurance supervisors
and regulators working together to strengthen responses to sustainability challenges facing
the insurance industry
Convened by UNEP, which serves as SIF
Secretariat
SIF members from over 30 jurisdictions around
the world
SIF works closely with the International
Association of Insurance Supervisors (IAIS)
Jul 2017 SIF becomes first group of financial regulators to support FSB-TCFD recommendations
Aug 2017 SIF publishes global stock-take of how insurance regulators are managing sustainability challenges
Jul 2018: SIF and IAIS collaborate to produce landmark “Issues Paper on Climate Change Risks to the Insurance Sector” spanning the industry’s insurance and investment activities
2019 SIF conducts global climate risk survey of insurance industry
2020 Issues Paper on TCFD implementation + Applications Paper on climate change & the insurance sector
Will conduct research on climate risk factors in insurance industry stress testing & scenario analysis
42
Developing sustainable insurance roadmaps spanning the
industry’s risk management, insurance & investment activities
44
“A risk-aware world, where the insurance
industry is trusted and plays its full role in
enabling a healthy, safe, resilient and
sustainable society.”
Vision of the PSI Initiative
45
Putting the Principles for Sustainable Insurance (PSI), Principles for Responsible Investment (PRI)
and Principles for Responsible Banking (PRB) into practice in an ocean context
Sustainable Blue Economy
Finance Principles
Sustainable Blue Economy Finance Principles
46
Sustainable Blue Economy Finance Initiative
• Supports implementation of the 14 Sustainable Blue Economy Finance Principles which
aim to direct capital flow towards activities directly contributing to UN Sustainable
Development Goal 14 (“Life below water”)
• Gold standard: Developed by WWF, World Resources Institute, European Investment
Bank and European Commission, the Principles represent world’s first global guiding
framework for banks, insurers and investors to finance a sustainable blue economy
• Over 40 signatories: American Hellenic Hull, Aviva Investors, BNP Paribas, European
Investment Bank, OECD, Rockefeller Asset Management, Willis Towers Watson, World
Bank and others
• United Nations-backed global community of banks, insurers, investors, international
organisations, scientists and researchers
• Expert network designed to catalyse change, share best practices, practical tools and
resources and urgently bring sustainable finance practices to ocean-linked sectors
• Aligned across the UN Environment Programme, which works with countries and
regions on policy pathways for a sustainable blue economy