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

47

Insuring for sustainable development

butch.bacani@un.org

www.unepfi.org/psi

psi@unepfi.org