40
5.1.2 Other initiatives
Other initiatives aim to support institutions in
assessing the alignment of their portfolios with
various climate scenarios and with the Paris
Agreement. Such tools also provide insight
on possible transition risks associated with
a disruptive shift to a low-carbon economy.
Examples include
the Paris Agreement Capital
Transition Assessment tool
48
or the Science
Based Targets initiative.
49
Various financial
institutions including insurers are using these
tools in their own analysis or to support TCFD-
aligned disclosures.
The United Nations
Environment Programme
Finance Initiative has various initiatives to
support sustainable investments. These include
the Principles for Responsible Investment
(PRI), a voluntary and aspirational set of
investment principles that offer possible actions
for
incorporating environmental, social and
governance (ESG) issues into investment practice.
Since the launch of the PRI in 2006, over 3 000
investors have signed on. In September 2019,
a further step was taken by setting up the Net-
Zero Asset Owner Alliance, a group of institutional
investors setting and reporting on targets for
net-zero GHG emissions by 2050.
At the time of
writing, the 37 institutional investors that are part
of the alliance, including 15 insurers, represent
around US$5.7 trillion assets under management.
5.2 SUPERVISORY MEASURES
5.2.1 IAIS initiatives
To support awareness around, and implementation
of, the TCFD recommendations, the IAIS and SIF
published an Issues Paper on the implementation
of the TCFD recommendations in February 2020.
50
The Issues Paper
assesses awareness of the
TCFD recommendations and their implementation
within the insurance sector, sets out a range
of supervisory approaches to encourage
implementation, and discusses the relevance of
the TCFD Framework to IAIS supervisory material.
In May 2021, the
IAIS and SIF published an
Application Paper on the supervision of climate-
related risks in the insurance sector,
51
providing
guidance for supervisors to integrate climate-
related risks into their supervision. The sections
on investment policy,
risk management and
disclosures are particularly relevant to the topic
of this paper. The Application Paper includes
recommendations and examples of good
practice on the role of the supervisor, corporate
governance
and risk management, enterprise risk
management for solvency purposes (including on
scenario analysis and stress testing), investments,
and disclosures.
Do'stlaringiz bilan baham: