A pioneering global sustainability framework and initiative

Transcription

1 A pioneering global sustainability framework and initiative PSI event by the Italian Association of Insurance Companies (ANIA) 4 December 2012, Milan Butch Bacani Programme Leader The UNEP FI Principles for Sustainable Insurance Initiative

2 Why the insurance industry? Uniquely positioned to tackle risks and opportunities arising from environmental, social and governance (ESG) issues Risk carrier Over USD 4.5 trillion in world premium volume Risk manager ESG issues Investor Over USD 24 trillion in global assets under management

3 Research foundation ( ) Agenda-setting report identifying ESG issues relevant to the insurance industry Case studies on insurance strategies, products and services addressing ESG issues

4 Examples of ESG issues that can be relevant to insurance Climate risks and extreme weather events Natural catastrophe risks Disaster risk reduction Resource depletion Biodiversity loss and ecosystem degradation Water management and scarcity Food insecurity Pollution Human rights and labour standards Social and financial exclusion Emerging health risks and pandemics Ageing populations Regulations (building codes, workplace and product safety standards, environmental regulations) Transparency and accountability Business principles and ethics Corruption Misaligned interests

5 UN goals are linked to ESG issues UN Millennium Development Goals UN Convention against Corruption UN Convention on Biological Diversity UN Framework Convention on Climate Change UN Global Compact Principles UNEP Green Economy Initiative Universal Declaration of Human Rights Hyogo Framework for Action : Building the resilience of nations and communities to disasters ILO s Declaration of Fundamental Principles and Rights at Work Rio Declaration on Environment and Development Rio+20 Outcome Document: The future we want

6 Research foundation ( ) First-ever global survey on ESG issues and the insurance industry Supported by leading academic institutions Supported by the UNEP Executive Director & HRH The Prince of Wales

7 What is sustainable insurance? Not about philanthropy Recognises fundamental economic value of natural capital, social capital and good governance Sustainable insurance: A strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities in the insurance business associated with ESG issues. Sustainable insurance aims to reduce risk, develop innovative solutions, improve business performance and contribute to environmental, social and economic sustainability.

8 Creating a pioneering global framework and global initiative Phase 1 The global framework Create voluntary and aspirational global principles, including possible actions, to better understand and manage risks and opportunities in the insurance business associated with ESG issues Phase 2 The global initiative Create a United Nations and global insurance industry initiative to promote the global adoption and implementation of the Principles

9 Scope of the Principles All lines of insurance Accident & Health, Agroforestry, Aviation, Casualty/Liability, Credit & Surety, Engineering, Life, Marine, Motor, Property All insurance company business strategies and operations Company strategy, risk management & underwriting, product & service development, claims management, sales & marketing, investment management All insurance industry participants Insurers, reinsurers, retrocessionaires, intermediaries, other insurance service providers All regions Africa, Asia, Europe, Latin America & the Caribbean, Middle East & North Africa, North America, Oceania

10 The 2011 PSI development process: Global, inclusive and consultative NORTH AMERICA June Guelph, Ontario, Canada UNEP FI-PSI TEAM GLOBAL MEETING 7-9 December Rüschlikon, Switzerland EUROPE October Munich, Germany UNEP FI GLOBAL ROUNDTABLE October Washington DC, USA MIDDLE EAST & NORTH AFRICA September Dubai, UAE ASIA November Tokyo, Japan Over 500 insurance industry LATIN AMERICA & THE CARIBBEAN participants and stakeholders May São Paulo, Brazil AFRICA March Johannesburg, South Africa OCEANIA August Auckland, New Zealand

11 Engagements via the PSI development process National insurance associations Australia, Bermuda, Brazil, Canada, Germany, Japan, Malaysia, Mauritius, New Zealand, Nigeria, Philippines, South Africa International insurance associations Chief Risk Officers Forum, ClimateWise, European Insurance & Reinsurance Federation, Insurance Association of the Caribbean, Inter-American Federation of Insurance Companies, Munich Climate Insurance Initiative, The Geneva Association, International Network of Insurance Associations Insurance regulators Brazilian Superintendence of Private Insurance, Canadian Council of Insurance Regulators, European Insurance & Occupational Pensions Authority, International Association of Insurance Supervisors, Japanese Financial Services Agency, New Zealand Reserve Bank, US National Association of Insurance Commissioners UN system and initiatives UNEP, UN Framework Convention on Climate Change, UNEP FI and UN Global Compact Principles for Responsible Investment, UN Global Compact, International Finance Corporation Service providers, academia, NGOs and others AM Best, Standard & Poor s, oekom, Sustainalytics, Institute for Catastrophic Loss Reduction, Global Reporting Initiative, International Integrated Reporting Committee, KPMG, The Prince s Accounting for Sustainability Project, Oxfam, PwC, WWF, accounting firms, universities

12 Sphere-of-influence structure of the Principles Public Governments, regulators & other key stakeholders Clients & business partners Own business strategies & operations

13 The Principles: A global sustainability framework 1 We will embed in our decision-making environmental, social and governance issues relevant to our insurance business. 2 We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, reduce risk and develop solutions. 3 We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues. 4 We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles.

14 UN support The United Nations looks forward to working with all sectors of society towards the global embrace of this important new initiative as we shape the future we want. Ban Ki-moon UN Secretary-General

15 UN support Achim Steiner UN Under-Secretary-General & UNEP Executive Director The Principles for Sustainable Insurance are a foundation upon which the insurance industry and society as a whole can build a stronger relationship one that puts sustainability at the heart of risk management in pursuit of a more forward-looking and better managed world.

16 Global launch of the Principles The insurance industry and sustainable development 19 June 2012, Rio de Janeiro, Brazil

17 PSI signatory companies Over USD 500 billion in gross premiums written more than 10% of world premium volume Over USD 5 trillion in combined total assets 1. Achmea (Netherlands) 2. AEGON (Netherlands) 3. Atlanticlux (Luxembourg) 4. Aviva (UK) 5. AXA (France) 6. Bradesco Seguros (Brazil) 7. Continental Re (Nigeria) 8. Delta Lloyd (Netherlands) 9. ING (Netherlands) 10. Insurance Australia Group (Australia) 11. Interamerican Hellenic Insurance Group (Greece) 12. Itau Seguros (Brazil) 13. La Banque Postale (France) 14. MAPFRE (Spain) 15. Mitsui Sumitomo Insurance (Japan) 16. Mongeral AEGON (Brazil) 17. Munich Re (Germany) 18. Porto Seguro (Brazil) 19. RSA Insurance Group (UK) 20. Sanlam (South Africa) 21. Santam (South Africa) 22. SCOR (France) 23. Seguradora Lider (Brazil) 24. Sompo Japan Insurance (Japan) 25. Sovereign (New Zealand) 26. Storebrand (Norway) 27. SulAmerica (Brazil) 28. Swiss Re (Switzerland) 29. TAL (Australia) 30. The Co-operators Group (Canada) 31. Tokio Marine & Nichido Fire Insurance (Japan) 32. Zwitserleven (Netherlands)

18 PSI supporting institutions 1. Brazilian Insurance Confederation (Brazil) 2. Finance Norway (Norway) 3. Insurance Association of the Caribbean (Barbados) 4. Insurance Council of Australia (Australia) 5. Insurance Council of New Zealand (New Zealand) 6. Insurance Institute of India (India) 7. International Cooperative & Mutual Insurance Federation (UK) 8. International Insurance Society (US) 9. Philippine Insurers & Reinsurers Association (Philippines) 10. South African Insurance Association (South Africa) 11. University of Cape Town (South Africa) Others About 20 other insurance companies, insurance associations and other organisations in progress

19 Benefits of becoming a signatory company Publicly demonstrating your organisation s adoption of sustainable insurance aims and its accountability and transparency to the public in managing ESG issues Access to UNEP and UN system expertise and resources on ESG issues, policymaking and science Access to UN events to dialogue with governments and other stakeholders on ESG issues, risk management and insurance Access to UNEP FI research, networks, events and capacity building services spanning ESG issues, insurance, investment and banking Access to the Annual General Meeting of signatories Two requirements for a signatory company Participate in the annual public disclosure process Pay the annual fees

20 Non-companies as supporting institutions Examples insurance associations and federations, insurance supervisors and regulators, insurance institutes and academies Publicly demonstrate your organisation s support for sustainable insurance aims Will be updated on and can be invited to relevant acitivities of the PSI Initiative Encouraged to carry out at least one activity a year that would support the adoption and implementation of the Principles

21 The Principles for Responsible Investment April 2006, New York Stock Exchange

22 The Principles for Responsible Investment 1 We will incorporate ESG issues into investment analysis and decision-making processes. 2 We will be active owners and incorporate ESG issues into our ownership policies and practices. 3 We will seek appropriate disclosure on ESG issues by the entities in which we invest. 4 We will promote acceptance and implementation of the Principles within the investment industry. 5 We will work together to enhance our effectiveness in implementing the Principles. 6 We will each report on our activities and progress towards implementing the Principles.

23 Over 1100 signatories globally Over USD 32 trillion in assets under management Examples of insurance or insurance-related PRI signatories Achmea Addenda Capital AEGON Asset Management Allianz Allianz Global Investors Aviva Investors AXA Group AXA Investment Managers AXA Private Equity Bradesco Asset Management CNP Assurances CommInsure Crédit Agricole Assurances Etera Mutual Pension Insurance Folksam HSBC Global Asset Management La Banque Postale Asset Management Ilmarinen Mutual Pension Insurance ING Investment Management Insurance Australia Group Itaú Asset Management Mongeral AEGON Munich Re Mutual Insurance Company Pension Fennia Old Mutual Prudential Portfolio Managers Sanlam Sanlam Investment Management Sompo Japan Insurance Sompo Japan Nipponkoa Asset Management Sovereign Assurance Storebrand Sul América Investimentos Swiss Re Syntrus Achmea Asset Management Taiyo Life Insurance Tapiola Mutual Pension Insurance Teachers Insurance & Annuity Association College Retirement Equities Fund TrygVesta Tokio Marine Asset Management Tokio Marine & Nichido Fire Insurance TrygVesta VidaCaixa Zurich Insurance Group

24 The PRI Initiative: Implementation in action PRI Engagement Clearinghouse PRI Enhanced Research Portal PRI in Practice PRI in Public Equity PRI in Private Equity PRI in Property PRI in Fixed Income PRI in Microfinance and Impact Investing (Principles for Investors in Inclusive Finance) PRI in Hedge Funds PRI in Infrastructure PRI in Commodities PRI Thematic Investments (e.g. clean tech, forestry, water) PRI Public Policy Network PRI Reporting & Assessment Framework PRI Small Funds Initiative PRI Academic Network PRI in Person Annual Event PRI country networks (e.g. Australia, Brazil, Canada, Japan, South Africa, South Korea, US) PRI Secretariat with about 40 staff members and growing

25 The PSI and PRI A holistic global sustainability framework for the insurance industry Core business strategies and operations Insurance Investment management Principles for Sustainable Insurance Principles for Responsible Investment Liability side Asset side Total balance sheet approach

26 Putting the PSI in perspective Insurance is no longer a missing link in global sustainable business principles ESG issues across industry sectors UN Global Compact Principles (2000) ESG issues across the financial sector IFC Equator Principles (project financing) (2004) UNEP FI Principles for Sustainable Insurance (2012) UNEP FI & UN Global Compact Principles for Responsible Investment (2006)

27 The PSI as an initiative: Turning the Principles into practice

28 The PSI as an initiative A UN and global insurance industry initiative to promote the adoption and implementation of the Principles Research, capacity building and other work streams across insurance lines, geographies, business operations Hub for dialogue with the UN system Hub for dialogue with governments, regulators and other key stakeholders Insurance industry signatories across all regions Mainstream sustainable insurance Help build a resilient, inclusive and sustainable society Country, regional and academic networks

29 1 st Annual General Meeting of the PSI Initiative 10 October 2012, United Nations Office, Geneva, Switzerland Governance framework of the PSI Initiative Election process for the PSI Initiative Board Examples of projects and activities relevant to the strategy and work programme of the PSI Initiative

30 Global promotion of the PSI Initiative Examples of activities since the PSI launch in June 2012 Netherlands PSI launch event by Achmea Greece PSI launch event by the Interamerican Hellenic Insurance Group Brazil PSI event by the Brazilian Insurance Confederation (CNseg) China China Insurance Regulatory Commission China China Insurance Rendezvous Japan Principles for Financial Action Towards a Sustainable Society USA 1 st Annual General Assembly of the Global Federation of Insurance Associations USA Annual General Assembly of the Inter-American Federation of Insurance Companies (FIDES) USA Annual Meeting of the American Risk & Insurance Association Botswana 1 st Southern African Insurance Conference Belgium 2 nd International Conference on Climate Services USA 1 st Climate Change Risks & Liability Conference of the University of Connecticut School of Law

31 Global promotion of the PSI Initiative Examples of activities since the PSI launch in June 2012 Switzerland KPMG Insurance Circle Event Switzerland International Actuarial Association Switzerland Italian Banking, Insurance & Finance Federation (FEBAF) Germany Roundtable of the German Association for Environmental Management & Sustainability in Financial Institutions (VfU) and UNEP FI New Zealand Annual Seminar of the Insurance Council of New Zealand New Zealand Financial Services Council of New Zealand Australia Insurance Council of Australia Australia Financial Services Council of Australia Australia Australian Prudential Regulatory Authority Italy PSI event by the Italian Association of Insurance Companies (ANIA) Upcoming activities South Africa 2 nd International Conference on Responsible Leadership India PSI event by the Insurance Institute of India Philippines 10 th Philippine General Insurance Summit

32 The PSI journey continues. Learn more at