Sustainability Link for Multi-Billion Assets Under Management, Says ICMIF Report

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by KnowESG
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The International Cooperative and Mutual Insurance Federation (ICMIF) says its members are in charge of assets linked to sustainable investment frameworks. These assets are worth $759 billion. This suggests that the insurance industry is increasingly investing in environmentally friendly and sustainable projects.

The ICMIF Members Sustainable Investment Report 2022 says that federation members put $760 billion into sustainable investments in 2022. This is 32% more than the $576 billion they put into such investments in 2021.

The report is based on a survey of 20% of the federation's membership, with the respondents representing 74% of the federation's assets under management for 2021, which total $1.5 trillion.

The report shows that ICMIF members are actively engaged in sustainable investment frameworks, such as green bonds, social bonds, and resilience bonds, which are focused on addressing climate change and its impacts.

The report also states that ICMIF members use a variety of investment frameworks, 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.

Impact investing is becoming more popular. 55% of respondents say they invest in it, up from 46% in 2020. Additionally, 85% of respondents reported that their organisation invested in sustainable bonds, such as green bonds, social bonds, and resilience bonds, for a total of $16.9 billion. This is a 40% increase from the $12.1 billion reported in 2021. Furthermore, 37% of respondents have made net-zero commitments, which is an increase from the 18% reported last year.

ICMIF CEO Shaun Tarbuck said: “The report reveals the results of the 2022 ICMIF Sustainable Investment Framework Survey, which are a 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.”

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Source: Coop News

Click here to view the full report.

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