A report by the International Cooperative and Mutual Insurance Federation (ICMIF) shows its members are managing US$759bn worth of assets linked to sustainable investment frameworks.
This represents an increase of 32% from the $576bn collectively invested by members in 2021, says the ICMIF Members Sustainable Investment Report 2022, released on 16 January.
The report is based on the federation’s Sustainable Investment Framework survey which drew responses from 20% of its membership. Respondents represented 74% of Icmif‘s members’ assets under management for 2021, equating to $1.5tn.
It reveals how ICMIF’s members are collectively involved in sustainable investment frameworks, including green bonds, social bonds and resilience bonds – many of which will be targeting climate change and its effects.
ICMIF members use multiple investment frameworks, the report finds, with the United Nations Environment Programme Finance Initiative Principles for Responsible Investment (UNEP FI PRI) and the Principles for Sustainable Insurance (PSI) among the top choices.
Some 55% of respondents invest in impact investing, up from 46% in 2020 to 15.6bn. Around 85% said their organisation invested in sustainable bonds including green bonds, social and/or resilience bonds, amounting to $16.9bn – up 40% on the $12.1bn reported in 2021. Furthermore, 37% of respondents have made net-zero commitments, up from 18% last year.
ICMIF CEO Shaun Tarbuck said: “The report reveals the results of the 2022 ICMIF Sustainable Investment Framework Survey which are testament to how our members have gone from strength to strength since the inception of this survey in 2019. Our latest findings show continued, solid forward-momentum from the mutual and co-operative insurance sector towards a greener future.
“It is well documented that sustainable initiatives improve a company’s financial performance; improve efficiency; reduce costs; and drive change. This allows the business to gain a competitive edge as well as significantly enhance the business’s image to employees, potential employees and other stakeholders such as member policyholders and investors. The co-operative and mutual insurance sector is ideally placed to take a lead in the field of sustainability and sustainable investments to form a coalition of the willing and lead by example.”
Mutual and co-operative insurers account for 30% of the world’s insurance market with 10tn in assets.
The full report is available here.