How Insurers Are Creatively Investing in A Growing Asset Class: Natural Capital

Detalles

Insurers face increasing regulatory and public pressure to manage climate-related risks through both their underwriting and asset management. The risk of climate change goes hand in hand with a less-discussed crisis: the dramatic loss of nature in our lifetimes, including the global reduction of wetlands, forests, and the biodiversity of plants, insects, and animals.

Humanity has already wiped out 83% of wild mammals and half of all plants, and has severely altered three-quarters of ice-free land and two-thirds of marine environments, according to the World Economic Forum. The forum’s research shows that $44 trillion of economic value generation, more than half of the world’s total GDP, is moderately or very highly dependent on nature.

Insurers, which invest trillions of dollars annually, seek to allocate their invested assets in a way that they can support sustainability, the energy transition, and even nature itself through natural capital.

Natural capital includes investments in real assets such as forests and farms, where insurers seek to protect the land from development while profiting from the products produced on the land. Investments often generate multiple sustainability benefits, including the production of green products or clean energy.

Insurance Insider convenes this seminar, in partnership with Manulife Investment Management, to explore the opportunities and challenges of investing in natural capital.

Questions to be addressed include:
– What is natural capital and what drives investments in it?
– Case studies: real examples of investments in natural capital – What are the risks of investing in natural capital? How to mitigate these risks?

PARTICIPATE