Report: UK insurers take lead when it comes to climate action by The Good Shopping Guide | May 30, 2018 | Ethical Shopping Blog | 0 comments A new report has been published by the independent and non-profit Asset Owners Disclosure Project (AODP). Titled, Got it Covered? Insurance in a Changing Climate, researchers rank and compare 80 of the largest insurers throughout the world according to their climate-related ambitions and targets.The impacts of climate-related risks are a growingreality for the insurance sector. This reality has keyimplications for that sector’s valuation. Weather-relatedfinancial losses, regulatory and technological changes,liability risks, and health impacts related to climatechange have implications for the business operations,underwriting, and financial reserving of insurancecompanies. Most notably, AXA, Aviva, Allianz SE, and Legal & General were found to be “leading the way on climate risk”. Additionally, the report notes that Tokio Marine, Legal & General, Credit Agricole, Allianz SE, Generali, NN Group, and Swiss Re display “the best year-on-year improvement when compared to the previous AODP 2017 Global Climate survey”. For anyone keeping up with the debates on issues pertaining to ethical insurance, there will be no surprise that, in contrast with UK and EU insurers, the US is home to the least ethical or climate-minded insurers amounting to 43% of the poorly (D or X) rated. Having said that, researcher note some evidence that US-based insurers are starting to get “serious about tackling these issues”. A number of other interesting findings were also revealed, including how “more than two thirds (69%) of the assessed insurers were able to disclose financially material climate-related risks but only 41% were able to identify business opportunities”. Meanwhile, it appears reporting on climate risks depends on the business model and area of operation, while only a third of insursurers surveyed can be said to be “climate aware”. The report concludes by stating (1) the need for greater regulation; (2) the US needs better disclosure and management; (3) in order to meet the objectives of the Paris Agreement, insurers need to take a more active and progressive stance.