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Greenwashing bonds

The public opinion tide on the need for action to curb climate change is rising. Financial services are increasingly speaking about it, and to some degree acting on it. However, the fact that insurers, who are by nature risk professionals, are lagging behind other sectors in terms of disclosures is indicative of the challenges ahead.

Insurers are very vocal players in the sustainable finance arena. That’s because – like all well-groomed insurers will tell you - climate change, or climate risk, impacts both sides of their balance sheets.

Nevertheless only 45 insurers globally are supporting the Task Force on Climate-related Financial Disclosures (TCFD), compared to 85 banks. Not only are they fewer in numbers but they disclose TCFD-aligned information less frequently than other financial sectors.