BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.
To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.
To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.
Insurers and brokers must make greater strides in evaluating, disclosing and incorporating climate risks and opportunities into their operations, says a report.
The insurance industry lags behind other sectors in holding their senior executives accountable for sustainability performance and offering financial compensation for meeting targets, according to Turning Point: Corporate Progress on the Ceres Roadmap for Sustainability report published in February by Boston-based investor coalition and sustainability advocacy group Ceres. No companies in the insurance sector are linking executive compensation to sustainability performance metrics, said Kristen Lang, Ceres’ company network director and co-author of the report.
The insurance sector outperforms the average in discussing climate risks in financial disclosures, but most disclosures “have yet to become really decision-useful for investors,” Ms. Lang said.
Hartford Financial Services Group Inc. is one of the few U.S. insurers making strong progress on identifying and implementing sustainability goals, according to Ceres.
The insurer has used Global Reporting Initiative standards to report on its “robust” public climate and sustainability commitments since 2011 even though only 22% of the insurance sector uses the standards.
The insurer also has about $500 million invested directly in U.S. utility-grade solar, wind and hydroelectric projects. In 2016, it launched its Environmental Opportunities Fund to invest in companies promoting environmental sustainability, according to its latest corporate sustainability report.
“The investment team is very much aware of the increased attention being given to investment portfolios and pursuing an articulation of our investment strategy that will align with our commitment to sustainability,” said Diane Cantello, Hartford, Connecticut-based head of corporate sustainability for the insurer.
Insurers and reinsurers are facing escalating pressure to boost their sustainability efforts, including improving their disclosure of climate risks and divesting their investments in fossil fuels.