Climate disclosures: a global risk driver in financial lines
UK | Europe | Asia Pacific | USA | Latin America and the Caribbean
COP26 brought global communities together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. However, the focus of the November 2021 conference was not solely government climate pledges; the spotlight was very much on the global private sector in terms of net-zero commitments as well.
Global investment and commitment to climate change has therefore never been so significant for corporates, their boards, and in turn their financial lines insurers.
What COP26 reinforced was that climate change is a global issue and can only be truly tackled successfully if a unified approach is taken by all global stakeholders. With mandatory climate disclosures becoming law in the UK (effective from 6 April 2022) and the United States Securities & Exchange Commission (SEC) announcing its long awaited climate disclosure rule on 21 March 2022, this report provides a snapshot of the approach towards climate disclosures in some of the jurisdictions in which Kennedys operates, before focusing on what this means for our policyholder and insurer clients in the financial lines arena.
D&Os must understand shifting regulatory and societal expectations and ensure the company responds. The spotlight will be firmly on any non-compliance, resulting in both legal and reputational vulnerability for companies and D&Os - and increased risk for their insurers.
Jenny Boldon, Partner, London
Read other items in Professions and Financial Lines Brief - May 2022
- SEC issues proposed regulations on climate-related disclosures and D&O implications
- Insurance Post TV: COP26 climate summit special featuring Kennedys
- Impact of the EU Green Deal to insurers two years on
- Insurers face a raft of new claims in the climate litigation space
- Professions and Financial Lines Brief July 2021: environmental social governance market insights
- Environmental, social and corporate governance - transparency and consistency at last?