Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Sustainability

Climate Goals & Targets

Environmental Challenges

• Greenwashing accusations
• Data availability issues, particularly in emerging market and developing economies and North America, make it difficult to monitor transition risks
• Increasing frequency and severity of natural catastrophes (NatCat) due to climate change pose significant challenges for insurers
• The impact of climate change on the frequency and severity of NatCat events could also have spillover effects beyond the insurance sector.

Mitigation Strategies

• Implementing risk-based pricing
• Enhancing data quality and analytical capabilities by leveraging digital innovation
• Establishing an enabling framework that sets out clear supervisory expectations and guidance for index selection, trigger definition and payouts
• Integrating climate risk into financial institutions’ risk management framework
• Incorporating climate risk considerations into their credit risk assessment and underwriting practices and diversifying investment portfolios to mitigate exposure to high-risk geographical areas or sectors
• Developing precise internal guidelines and frameworks to encourage sustainable finance practices and transparent reporting
• Diversifying funding sources (retail deposits, wholesale funding, capital markets, etc.) is equally important to minimize reliance on a single source.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes (floods)

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: CSRD, SFDR, EU Taxonomy, Paris Agreement