Insurance Industry: UN launches Principles for Sustainable Insurance

The UN has unveiled its Principles for Sustainable Insurance (PSI), seeking to replicate its success in introducing voluntary environmental, social and governance (ESG) principles to the asset management business.

In Rio today, 27 insurance companies, representing some 10% of world premium volume and with $5 trillion of assets under management, signed up to the voluntary PSI, which comprise four principles.
These are:

• embedding relevant ESG issues into decision making;
• working with clients, suppliers, and counterparties to raise awareness around ESG issues, develop products and manage ESG risks;
• working with regulators and governments to promote wider action across society on ESG issues;
• and reporting annually on the progress they are making implementing them.

“The Principles provide a holistic approach to managing a wide range of global and emerging risks in the insurance business, from climate change and natural disasters to water scarcity, food insecurity and pandemics,” the UN Environment Programme Finance Initiative (UNEP FI) – which facilitated the PSI’s development – said in a statement.

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