The International Cooperative and Mutual Insurance Federation (ICMIF), representing members with a collective US$ 8 trillion of assets under management, today joined the Climate Bond Standards Board, the organization working to clarify climate smart investments for bond investors.
Climate Bond Standard & Certification Scheme is a project of the Climate Bonds Initiative, which aims to mobilize capital markets for rapid transition to a low-carbon and climate resilient economy. It is overseen by a board now representing over $32 trillion of assets under management.
Today’s announcement comes only a few months after ICMIF’s Chief Executive, Shaun Tarbuck, spoke at the United Nations Climate Summit in New York where he pledged that the insurance industry will double its climate-smart investment by the end of 2015, and increase them by a factor of 10 by 2020.
Mr Tarbuck said: “I am delighted to be nominated to the Standards Board as this is a high level strategically influential group than can help deliver on climate change commitments we have made. The ICMIF Board approved the participation in this initiative at its meeting last month as it believes that the mutual insurance industry has a pivotal role to play in managing the pressing issue of climate risk.”
Sean Kidney, CEO of the Climate Bonds Initiative said: “The commitment by the insurance industry to dramatically increase its climate-smart investments is incredibly important to the financing of climate solutions. ICMIF’s involvement in the Climate Bond Standards Board will help ensure that the infrastructure for a large and liquid climate bonds and green bonds market is created to suit the needs of investors, speeding the flow of capital to climate solutions.”
Mr Tarbuck added; “The insurance industry holds one third of the world’s investible assets and the mutual and cooperative sector accounts for almost a third of that, around USD 10 trillion. Our sector has been quick to respond to recent calls for leadership from the United Nations in the climate change debate, as by nature our members want to be more accountable and recognise that investment reform is needed to ensure that climate smart investment is core to their strategies as well as to the global economy. ”
“Our sector has been the fastest growing part of the industry, with premium growth since 2007 at 28% compared to the rest of the market which grew by 12%. Our members are close to the communities that they serve and therefore they are better equipped to understand the risks they manage. These businesses have great leaders who are ready to develop sustainable solutions to abate one of the greatest threats this planet has ever faced; climate change.”
