Landmark principles create United Nations-backed global insurance industry initiative to support the development of a green economy and resilient communities
Rio de Janeiro, 19 June 2012 – Close to 30 leading companies from the insurance industry, worth over USD 5 trillion in total assets and representing over 10 per cent of world premium volume, together with insurance associations from different regions around the world, have joined a UN-backed process to promote a set of Principles for Sustainable Insurance that aim to green the sector and provide insurance tools for risk management in support of environmental, social and economic sustainability.
The Principles provide a holistic approach to managing a wide range of global and emerging risks in the insurance business, from climate change and natural disasters to water scarcity, food insecurity and pandemics.
They represent the first-ever global sustainability framework tailored for the insurance industry that takes into account the fundamental economic value of natural capital, social capital and good governance.
The Principles also aim to position the insurance industry as a lever for a green economy and sustainable development. Signatory companies will publicly disclose their progress in implementing the Principles for Sustainable Insurance on an annual basis.
The Principles are a result of a six-year global development process carried out by the UN Environment Programme’s Finance Initiative (UNEP FI), a strategic initiative involving the UN Environment Programme (UNEP) and financial institutions worldwide.
In 2006, UNEP FI created a working group of leading insurers to study the impacts of a wide range of environmental, social and governance issues on the insurance business and sustainable development. This group was initially cochaired by AXA and Insurance Australia Group and is currently chaired by Munich Re.
Source: UNEP FI
You can find The Principles here.