43% of insurers make public commitments to net-zero by 2050

Written by Adam Cadle

21/03/2022

Forty-three per cent of global insurance companies have now made a public commitment to net-zero by 2050, a larger percentage than any other institutional and wholesale investor, research published by Robeco has revealed.

Robeco’s 2022 Global Climate Survey, covering 300 institutional and wholesale investors in EMEA, North America and Asia Pacific with a total AuM of $23.7trn, showed that 31% of other institutional investors and 19% of wholesale investors have made a public commitment to the net-zero goal by 2050.

Forty-eight per cent of insurance companies said reducing long-term systemic risks is the key motivator on biodiversity, with 47% of insurance companies stating demands from stakeholders. Forty-seven per cent of insurance companies said they see biodiversity as the next major trend and challenge besides climate change. Other reasons cited as motivators for biodiversity include preserving wildlife and ecosystems (23%), being early adopters as investors to benefit from future regulations, policies, etc. (33%), investment opportunities from the protection and restoration of biodiversity (21%) and wanting to be seen as a leader on this issue (21%).

Active ownership and engagement has risen from being at the centre, or a significant factor, in 54% of investors’ investment policies two years ago, to 73% now and is expected to be at the centre, or a significant factor, in 80% of investment policies in the next two years. This trend is strongest among European investors, but it is also present in North America and Asia Pacific. Nine-in-ten European investors expect active ownership and engagement to be at the centre, or a significant factor, in their investment policies in two years, compared to 82% in Asia Pacific and 68% in North America. There is less variation between institutional investors and wholesale investors here; 80% of institutional investors expect active ownership and engagement to be significant or central to their investment policies in the next two years, as do 78% of wholesale investors. For insurance companies, the figure is 92%, "showing their progress on this, as well as other sustainability issues", Robeco stated.

Robeco climate strategist Lucian Peppelenbos said: “The survey sheds light on how institutional investors view some of the key issues around climate change, biodiversity, and stewardship. While there is uncertainty around these topics, we also know that we must take urgent action. We don’t have the luxury to wait for perfect data or perfect solutions. As investors, we need to pull up our sleeves and work our way through it, as we have the means to put money to work where it can make a difference. Being a global leader in sustainable investing, we see it as our duty to share our expertise with others and we hope that this research helps stimulate the investment industry to play a constructive role in combating climate change and loss of nature."

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