State regulators have a role to play as well. Ceres recommends state insurance commissioners strengthen mandatory climate risk disclosure by expanding the number of states participating, and by clarifying disclosure expectations. State regulators should also build climate risk considerations into the financial oversight process.
Ceres recommends that investors and rating agencies encourage insurers to improve disclosure of climate change risks, opportunities and response strategies, in a manner consistent with disclosure mandates already in place in New York, Washington and California.
“As a long-term investor, CalSTRS is dedicated to making sure climate change is factored into the regular risk management practices of our portfolio companies, especially those in the insurance industry,” said Jack Ehnes, Chief Executive Officer of the California State Teachers’ Retirement System (CalSTRS), a leading U.S. investor who spoke at the news conference. “By integrating climate change risk management into their practices, insurance companies greatly improve their abilities to offer sustained shareholder value.”
Ceres is a non-profit group advocating for sustainability leadership. Ceres mobilizes a powerful coalition of investors, companies and public interest groups to accelerate adoption of sustainable business practices that will build a healthy global economy. Ceres also directs the Investor Network on Climate Risk (INCR), a network of 100 institutional investors with collective assets totaling more than $ 10 trillion.
Source: Ceres.
