Green Bonds: o mercado de Títulos Verdes e as oportunidades para o Setor de Seguros Brasileiro

Por Antonio Carlos Teixeira

Introdução

Como Sociedade Global, um dos grandes desafios que temos pela frente é a transição para uma economia de baixo carbono. Numa Civilização baseada no petróleo, a tarefa não será nada fácil. Mas não é impossível. Dentre as ações urgentes a serem implementadas, a mais imediata é a redução das emissões de gases gerados pelas engrenagens que movem os nossos modos de produção e consumo. O principal deles, sem dúvida, é o dióxido de carbono, o CO2.

Os esforços para combater os efeitos danosos da excessiva emissão de CO2 estão vindo de várias frentes. No setor de energia, por exemplo, os mercados posicionam-se para renovar e adaptar suas estruturas e regulamentações para seguirem no rumo da transição para a economia de baixo carbono. Na União Europeia (EU), o setor energético é peça fundamental para a meta de descarbonizar a economia entre 85% e 95% até 2050. Um dos caminhos para o alcance de tal objetivo é a utilização massiva de fontes renováveis e de baixa emissão, como a eólica, de acordo com o recente relatório “Making transition work”, da organização Wind Europe.

Neste sentido, serão necessárias adequações e adaptações por parte de toda a cadeia produtiva, bem como acordos e compromissos que nos incentivem a pensar e a praticar esta mudança de comportamento. Tal evolução na percepção sobre a urgência na redução das emissões de CO2 e demais gases de efeito estufa (GEE) é fundamental para o entendimento da necessidade de se direcionar recursos para o financiamento da transição para uma sociedade de baixa emissão de carbono.

A ideia deste artigo é encorajar e fortalecer a participação do Setor de Seguros Brasileiro, por meio de seus principais agentes (seguradoras, resseguradoras, corretores, instituições de ensino e de pesquisa, entre outros) em ações que visem a concepção e a implementação de carteiras de projetos de mitigação e adaptação aos riscos e efeitos de mudanças climáticas. Uma destas ações, sem dúvida, é a negociação dos chamados Títulos Verdes (ou Green Bonds), instrumentos financeiros específicos, capazes de aglutinar e incentivar programas e projetos para impulsionar a consolidação da sociedade global de baixo carbono.

COP21: a chave do Acordo de Paris

Durante a 21ª Conferência do Clima (COP21), realizada em dezembro de 2015 em Paris (França), os 195 países-membros da Convenção-Quadro das Nações Unidas sobre Mudanças Climáticas (UNFCCC) comprometeram-se a intensificar ações e investimentos para o desenvolvimento de uma economia de baixo carbono.

Além do objetivo geral de estabilizar o aumento da temperatura média do planeta Terra abaixo de 2°C em relação aos níveis pré-industriais – e, se possível, deter este aumento ao redor de 1,5°C –, o Acordo de Paris indicou a importância da aprovação de recursos financeiros para ações de mitigação e adaptação às mudanças climáticas provenientes tanto de fontes públicas quanto privadas.

Também está previsto no acordo da COP21 a instituição de um fundo de US$ 100 bilhões por ano para o financiamento climático, a ser criado pelos países desenvolvidos até 2025. Entretanto, este valor nem chegaria perto do volume de investimentos estimados por organizações como a Agência Internacional de Energia, Banco Mundial e World Resource Institute (WRI), necessários para a travessia da transição rumo à sociedade planetária de baixo carbono: US$ 5 trilhões anuais.

A mobilização de recursos por meio de instrumentos financeiros específicos para investimentos em programas e projetos ambientais e/ou climáticos encontra respaldo nos Títulos Verdes/Green Bonds. A crescente evolução destes papeis em nível internacional levou o grupo das 20 maiores economias do mundo (G20) a recomendá-lo aos seus integrantes, de acordo com o seu recente relatório “Climate Finance Study Group”.

Definição e mercados internacionais

Podemos definir Títulos Verdes/Green Bonds como papeis de renda fixa para captação de recursos que visem investimentos em projetos (novos ou existentes) baseados em questões ambientais e/ou climáticas. Caracterizam-se por financiarem “projetos ou ativos verdes“ de longo prazo – algo que está estreitamente relacionado com investidores institucionais como fundos de previdência e seguradoras.

A primeira emissão destes papeis foi realizada em 2008 pelo Banco Mundial. Atualmente, são emitidos em dezenas de países por bancos comerciais e empresas, e em mais de 15 moedas. Até 2012, os únicos emissores de Green Bonds eram os bancos de desenvolvimento multilaterais. Desde então, empresas, municípios, agências de crédito e exportação e bancos comerciais aumentaram significativamente a participação como emissores destes títulos.

 

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016 / Climate Bonds Initiative (CBI) 2016

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016 / Climate Bonds Initiative (CBI) 2016

 

Bancos de desenvolvimento multilaterais e municípios incluem cada vez mais componentes de adaptação às mudanças climáticas nos seus Títulos Verdes/Green Bonds, com vistas à criação de Projetos Verdes de adaptação às mudanças climáticas.

Desde 2007, emissores de países em desenvolvimento lançaram US$ 10 bilhões em Títulos Verdes/Green Bonds. Atualmente, os mercados chinês e indiano estão entre os de mais rápido crescimento, principalmente devido ao apoio explícito de seus governos nacionais.

O setor de energia ainda é o segmento que mais se utiliza dos recursos obtidos com a emissão de Títulos Verdes/Green Bonds. Porém, os setores de transporte e construção civil começam a se destacar com expressivos crescimentos globais, principalmente em função das emissões de títulos chineses.

 

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016 / Climate Bonds Initiative 2016

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016 / Climate Bonds Initiative 2016

 

Nos cálculos da organização Climate Bonds Initiative, os negócios envolvendo Títulos Verdes/Green Bonds chegavam a US$ 140 bilhões em setembro de 2016, além de outros US$ 576 bilhões desses papeis que têm potencial para serem classificados como tal. Em resumo: Títulos Verdes/Green Bonds são instrumentos financeiros atrelados a adicionalidades ou atributos ambientais que promovem benefícios para mitigação dos efeitos causados por alterações climáticas.

O potencial do mercado de Títulos Verdes no Brasil

No Brasil, os papeis de renda fixa que poderiam ter adicionalidades ambientais/climáticas incluídas e ser classificados como Títulos Verdes/Green Bonds são:

. Cotas de Fundos de Investimento em Direitos Creditórios (FIDC)

. Certificado de Recebíveis do Agronegócio (CRA)

. Certificado de Recebíveis Imobiliários (CRI)

. Debêntures

. Debêntures incentivadas de infraestrutura

. Letras Financeiras

. Notas Promissórias

Se o foco for o mercado internacional, podem ser emitidos como bonds, notes ou commercial papers, utilizando qualquer instrumento regulamentado na jurisdição escolhida.

O “Guia para Emissão de Títulos Verdes no Brasil 2016” (documento lançado pela Federação Brasileira de Bancos – Febraban e pelo Conselho Empresarial Brasileiro para o Desenvolvimento Sustentável – Cebds) apresenta um excelente diagnóstico sobre o potencial do mercado de Títulos Verdes/Green Bonds no Brasil. A metodologia identifica os setores com maior capacidade para desenvolver Projetos Verdes e que “poderiam receber recursos obtidos por meio de emissões de Títulos Verdes no mercado primário de capitais.”

De acordo com o documento, os setores com grandes possibilidades de investimento para emissões de Títulos Verdes são: agronegócio; florestal; energia; e infraestrutura, este último especificamente nas áreas de transporte, construção civil e saneamento. Segundo estudo da Climate Bonds Initiative, o mercado de títulos de renda fixa brasileiros com características ambientais positivas somava US$ 2,9 bilhões em julho de 2016, incluindo aqueles rotulados e não rotulados como Títulos Verdes/Green Bonds.

“Estes setores são fundamentais para o crescimento econômico do Brasil e sua transição para uma economia de baixo carbono. Os Títulos Verdes representam uma grande oportunidade para direcionar capital aos investimentos necessários para alcançar os objetivos de combate às mudanças climáticas estabelecidos na COP21 por meio do Acordo de Paris”, aponta o Guia da Febraban/Cebds.

Participantes, diretrizes e princípios

O mercado financeiro global já dispõe de diretrizes específicas elaboradas por instituições internacionais para a elaboração de emissões de Títulos Verdes/Green Bonds. Como referência, podemos citar os princípios criados por organizações multilaterais como Banco Mundial, Banco Interamericano de Desenvolvimento (BID), International Finance Corporation (IFC), European Investment Bank (EIB) e International Capital Markets Association (ICMA).

Composta por mais de 50 instituições financeiras, a ICMA destaca-se pelo desenvolvimento dos globalmente reconhecidos Green Bond Principles, conceitos que fornecem orientações para atuação no mercado destes títulos relacionadas a: identificação dos critérios de elegibilidade dos projetos financiados; seleção dos projetos; gestão dos recursos; monitoramento e reporte.

Os principais agentes envolvidos no segmento de Títulos Verdes/Green Bonds são os mesmos do tradicional Mercado de Capitais: emissores; coordenadores (underwriters); investidores; reguladores e supervisores; agências de rating; agentes fiduciários; auditores financeiros; sistemas de registro, depósito, liquidação e negociação de valores mobiliários; assessores legais.

Além destes integrantes usuais, o mercado de Títulos Verdes/Green Bonds conta ainda com a participação de uma terceira parte: os Agentes de Avaliação Externa, que atestam, por meio de um parecer independente, os atributos ambientais positivos dos projetos para os quais os recursos captados serão destinados.

Os Green Bond Principles definem os seguintes formatos de Avaliação Externa:

1 – Opinião

2 – Verificação

3 – Certificação

4 – Rating Verde

As características desta avaliação e suas modalidades são detalhadas na tabela a seguir:

EXEMPLOS DE FORMATOS DE AVALIAÇÃO EXTERNA

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016 / Green Bond Principles (2016)

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016 / Green Bond Principles (2016)

 

“Cabe ressaltar, no entanto, que é de responsabilidade do emissor do Título Verde garantir que a alocação dos recursos obtidos e o monitoramento do desempenho ambiental dos projetos ocorram conforme previsto. Neste sentido, a Avaliação Externa é a forma mais indicada para verificar o cumprimento destes compromissos, podendo ser também utilizada no processo de comunicação dos resultados aos investidores e coordenadores [das emissões]”, sugere o Guia Febraban-Cebds.

Emissão para financiamento de projetos ou investimentos verdes

Empresas atuantes no mercado brasileiro podem financiar ou refinanciar, com a emissão de Títulos Verdes/Green Bonds, um único ou um conjunto de Projetos Verdes identificados e/ou específicos. As corporações também podem optar pela emissão de Títulos Verdes/Green Bonds para financiar um programa de investimentos verdes, sem que os respectivos projetos sejam especificados no momento da emissão. Nestes casos, o emissor indicaria apenas a qual categoria de projetos os recursos seriam destinados (ex. eficiência energética, geração de energia renovável, tratamento de efluentes, etc.), deixando o detalhamento para ser feito posteriormente.

Benefícios para o emissor de Títulos Verdes/Green Bonds(1)

1) Diversificação e/ou ampliação da base de investidores:

. acesso a novos investidores, como fundos sustentáveis (que consideram questões Ambientais, Sociais e de Governança – ASG), investidores com mandato específico para compra de Títulos Verdes ou com objetivos de longo prazo (como fundos de pensão, seguradoras e signatários do PRI – Principles for Responsible Investment/Princípios para o Investimento Responsável), que por suas caraterísticas podem manter o papel em carteira mesmo em momento de crise.

2) Ganhos reputacionais:

. maior visibilidade para os Projetos Verdes;

. instrumento de marketing positivo, diferenciando a emissão dos Títulos Verdes/Green Bonds das emissões convencionais;

. reconhecimento do comprometimento do emissor com a conservação do meio ambiente e com a mitigação e prevenção dos riscos originados pelas mudanças climáticas.

(1) De acordo com o Guia para Emissão de Títulos Verdes no Brasil 2016

Benefícios para o investidor de Títulos Verdes/Green Bonds(2)

1) Maior transparência na utilização dos recursos:

. os projetos financiados com recursos obtidos pela emissão de Títulos Verdes são geralmente estruturados e enquadrados dentro de uma estratégia de longo prazo da empresa, devendo ser aderentes à sua política de responsabilidade socioambiental e revelar a governança para a sustentabilidade dos seus negócios.

. a clareza e destinação específica na aplicação dos recursos e no seu monitoramento podem fazer com que os Projetos Verdes apresentem menores riscos associados ao investimento.

2) Convergência com compromissos voluntários:

. investimentos em Títulos Verdes facilitam o cumprimento de compromissos para os gestores de recursos signatários do PRI e do Institutional Investors Group on Climate Change (IIGCC). Estes compromissos voluntários, assumidos por mais de 1.500 organizações dos mercados nacional e internacional, orientam investimentos em projetos que favoreçam o desenvolvimento ambiental e social sustentável;

. para investidores especializados, com mandatos de sustentabilidade, a disponibilidade de Títulos Verdes facilita a identificação de projetos e ativos-alvo no mercado de renda fixa.

3) Retorno financeiro:

. os Títulos Verdes, em geral, apresentam retorno financeiro e preços definidos pelo mercado, assim como ocorre para os títulos convencionais.

(2) De acordo com o Guia para Emissão de Títulos Verdes no Brasil 2016

Um “Mercado de Oportunidades” para as seguradoras no Brasil!

As instituições financeiras podem atuar com destaque no mercado de Títulos Verdes/Green Bonds, uma vez que podem ser emissores, coordenadores das emissões das empresas ou mesmo atuar como investidores. É um “Mercado de Oportunidades” ainda não explorado pelo Setor de Seguros: atualmente, apenas bancos comerciais e de desenvolvimento destacam-se entre as instituições financeiras de maior relevância no mercado internacional de Títulos Verdes/Green Bonds.

Sendo assim, a participação no mercado de Títulos Verdes/Green Bonds – seja como emissor, coordenador ou investidor – é uma grande oportunidade para as seguradoras no Brasil, em especial, as corporações do segmento que planejam ampliar as suas ações e estratégias socioambientais e de investimentos verdes para mitigação de emissão de gases de efeito estufa (GEE) e de riscos climáticos.

Como emissores, as instituições financeiras poderão emitir Títulos Verdes para financiar carteiras de Projetos Verdes de seus clientes (financiamentos ou empréstimos verdes). Mas também, a exemplo das empresas, podem emitir títulos para financiar ou refinanciar seus próprios Projetos Verdes. “Um exemplo é a implantação de um amplo programa de eficiência energética em suas unidades administrativas, data centers ou rede de agências”, indica o Guia Febraban-Cebds. O documento aponta ainda que tais instituições “também podem se tornar grandes emissoras de Títulos Verdes para financiar empresas sem acesso ao mercado de capitais, contribuindo assim para alavancar a ‘economia verde’”. Ou seja: o mercado de Títulos Verdes/Green Bonds é um negócio a ser desbravado pelas seguradoras brasileiras!

Na experiência internacional, os programas de emissão de Títulos Verdes por instituições financeiras têm foco principalmente em carteiras de empréstimos para projetos de energia renovável, eficiência energética e construção sustentável. A tabela a seguir mostra, também, exemplos de outros setores e áreas como opção para projetos a serem financiados por meio de “green bonds”.

EXEMPLOS DE ATIVIDADES ELEGÍVEIS PARA PROJETOS DE FINANCIAMENTO COM TÍTULOS VERDES

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016

Fonte: Guia para Emissão de Títulos Verdes no Brasil 2016

 

Responsáveis por movimentar volumes significativos no mercado financeiro, com carteiras de investimentos expressivas, os investidores institucionais são participantes essenciais do Mercado de Capitais.

Neste sentido, as seguradoras, que atuam na gestão de recursos de terceiros, operam com uma perspectiva de longo prazo, visão fundamental para fomentar a sua ativa participação no mercado de Títulos Verdes/Green Bonds.

Tal incremento não beneficiará apenas as empresas seguradoras, mas todo o Mercado de Seguros Brasileiro. Além de incentivar negócios inovadores no segmento financeiro, irá propagar perspectivas e parâmetros ambientais e sustentáveis de vanguarda – em sintonia com aspectos de mitigação de impactos climáticos –, capazes de gerar inovações em produtos, programas e projetos nos campos do ensino, da pesquisa e do relacionamento com os segurados, fortalecendo a transição do Setor e a sua contribuição para o alcance de uma sociedade e economia globais de baixa emissão de carbono.

 
Antonio Carlos Teixeira
Consultor de Comunicação para Sustentabilidade, Assessor Corporativo de transição para uma sociedade de baixa emissão de carbono, editor do blog TerraGaia

www.terragaia.wordpress.com

antonioteixeira@nym.hush.com

 
Referências

. FEBRABAN; CEBDS. Guia para Emissão de Títulos Verdes no Brasil 2016. Outubro 2016. Disponível em: http://cebds.org/publicacoes/guia-para-emissao-de-titulos-verdes-no-brasil-2016/#.WCcLX_krKUm. Acesso em: 12/11/2016.

. FEBRABAN; CEBDS. Guia para Emissão de Títulos Verdes no Brasil 2016. Versão para consulta pública, 16/09/2016. Disponível em: https://cmsportal.febraban.org.br/Arquivos/documentos/PDF/Titulos%20Verdes%20-%20Guia%20Febraban%20CEBDS%20-%20vConsulta%20Publica_final.pdf. Acesso em 12/11/2016

. G20. Climate Finance Study Group – Promoting efficient and transparent provision and mobilization of climate finance to enhance ambition of mitigation and adaptation actions. June 2016. Disponível em http://g20.org/English/Documents/Current/201608/P020160815357624187353.pdf. Acesso em: 14/11/2016.

. UNDP. UNDP and Climate Change – Zero carbono, sustainable development. November 2015. Disponível em: http://www.undp.org/content/dam/undp/library/Climate%20and%20Disaster%20Resilience/UNDP_and_Climate_Change.pdf. Acesso em: 13/11/2016.

. WIND EUROPE. Making Transition Work. September 2016. Disponível em: https://windeurope.org/wp-content/uploads/files/about-wind/reports/WindEurope-Making-transition-work.pdf. Acesso em: 13/11/2016.

. WORLD BANK. Green Bonds: working towards a harmonized framework for impact reporting. December 2015. Disponível em: http://treasury.worldbank.org/cmd/pdf/InformationonImpactReporting.pdf. Acesso em: 10/11/2016.

 
Sites sugeridos sobre green bonds e assuntos afins:

. Agência Internacional de Energia
https://www.iea.org/

. Banco Interamericano de Desenvolvimento (BID)
http://www.iadb.org/

. Banco Mundial
http://www.worldbank.org/

. Bloomberg
http://www.bloomberg.com/

. Climate Bonds Initiative
https://www.climatebonds.net/

. Environmental Finance
https://www.environmental-finance.com/

. European Investment Bank (EIB)
http://www.eib.org/

. Green Bond Principles
http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/green-bond-principles/

. Institutional Investors Group on Climate Change (IIGCC)
http://www.iigcc.org/

. International Capital Markets Association (ICMA)
http://www.icmagroup.org/

. International Finance Corporation (IFC)
http://www.ifc.org/

. Principles for Responsible Investment (PRI)
https://www.unpri.org/

. World Resource Institute (WRI)
http://www.wri.org/

 
Este artigo foi publicado originalmente na edição novembro 2016 da revista Opinião.Seg:

https://www.editoraroncarati.com.br/v2/Artigos-e-Noticias/Artigos-e-Noticias/13%C2%AA-edicao-da-revista-Opiniao-Seg-%E2%80%93-Novembro-de-2016.html

 
Access the English version of the article:

https://terragaia.wordpress.com/2016/12/27/the-green-bonds-market-and-the-opportunities-for-the-brazilian-insurance-industry/

 

Publicado em Cambio climático, Carbono, Cidadania e Sustentabilidade, Cidades Sustentáveis, Ciudades sostenibles, Climate Change, climate risk, Climate Risk Insurance, CO2, Comunicação Ambiental, Consciência ambiental, COP21 Paris França 2015, Desenvolvimento sustentável, Economia, economia de baixo carbono, Economia Verde-Green Economy, Empresas, Energia, Energias renováveis, Gestão sustentável, Governança, green bonds, low carbon economy, Mudança climática, Projetos ambientais, Responsabilidade corporativa, Responsabilidade Social Empresarial RSE, Seguro e Meio Ambiente, Seguro e mudanças climáticas, Seguro e sustentabilidade, títulos verdes, transição para uma economia de baixo carbono, Transição para uma Sociedade de Baixo Carbono | Marcado com , , , , , , , , , , , , , , | Deixe um comentário

The Green Bonds Market and the opportunities for the Brazilian Insurance Industry

By Antonio Carlos Teixeira

Introduction

As a Global Society, one of the major challenges facing us is the transition to a low carbon economy. In an oil-based Civilization, the task will not be easy. But it’s not impossible. Among the urgent actions to be implemented, the most immediate is the reduction of the emissions of gases generated by the gears that move our production and consumption modes. The main one, without a doubt, is carbon dioxide, CO2.

Efforts to combat the damaging effects of excessive CO2 emissions are coming from many fronts. In the energy sector, for example, markets are positioned to renew and adapt their structures and regulations to move towards the transition to the low-carbon economy. In the European Union (EU), the energy sector is key to the goal of decarbonising the economy between 85% and 95% by 2050. One way to achieve this is to use massive renewable and low, such as wind power, according to Wind Europe’s recent “Making transition work” report.

In this sense, adaptations will be needed throughout the production chain, as well as agreements and commitments that encourage us to think and practice this behavior change. Such an evolution in the perception about the urgency to reduce CO2 and other greenhouse gas (GHG) emissions is fundamental for understanding the need to direct resources to finance the transition to a low carbon society.

The idea of this article is to encourage and strengthen the participation of the Brazilian Insurance Sector, through its main agents (insurers, reinsurers, brokers, educational and research institutions, among others) in actions aimed at the design and implementation of portfolios of mitigation and adaptation projects to the risks and effects of climate change. One of these actions is undoubtedly the negotiation of so-called Green Bonds, specific financial instruments capable of agglutinating and encouraging programs and projects to boost the consolidation of the global low carbon society.

COP21: the key to the Paris Agreement

During the 21st Climate Change Conference (COP21), held in December 2015 in Paris (France), the 195 member countries of the United Nations Framework Convention on Climate Change (UNFCCC) committed themselves to intensify actions and investments for development of a low carbon economy.

In addition to the general objective of stabilizing the average temperature rise of the Earth below 2°C in relation to pre-industrial levels – and, if possible, stopping this increase by around 1,5°C – the Paris Agreement indicated the importance of approving financial resources for actions to mitigate and adapt to climate change from both public and private sources.

The Paris Agreement also provides for the establishment of a US$ 100 billion per year climate finance fund to be created by developed countries by 2025. However, this figure would not even close to the volume of investments estimated by organizations such as the Agency International Energy, World Bank and World Resource Institute (WRI) needed to cross the transition to low-carbon planetary society: US$ 5 trillion per year.

The mobilization of resources through specific financial instruments for investments in environmental and / or climate programs and projects is supported by Green Bonds. The increasing evolution of these roles at the international level led the group of the world’s 20 largest economies (G20) to recommend it to their members, according to their recent report “Climate Finance Study Group”.

Definition and international markets

Green Bonds can be defined as fixed income securities to raise funds for investment in projects (new or existing) based on environmental and / or climatic issues. They are characterized by financing long-term “green projects or assets” – something that is closely related to institutional investors such as pension funds and insurance companies.

The first issue of these papers was made in 2008 by the World Bank. They are currently issued in dozens of countries by commercial banks and companies, and in more than 15 currencies. Until 2012, the only issuers of Green Bonds were the multilateral development banks. Since then, companies, municipalities, credit and export agencies and commercial banks have significantly increased their participation as issuers of these securities.

Accumulated Emissions of Green Bonds by Type of Issuer

fireshot-capture-293-https___cmsportal-febraban-org-br_arquivos_documentos_pdf_titulos-ver

Source: Guia para Emissão de Títulos Verdes no Brasil 2016 / Climate Bonds Initiative (CBI) 2016

. Multilateral banks: 29%

. Business: 28%

. Municipalities: 17%

. Commercial banks: 12%

. National development banks: 11%

. Exim credit agencies: 3%

Multilateral development banks and municipalities increasingly include adaptation components to climate change in their Green Bonds, with a view to creating Green Projects to adapt to climate change.

Since 2007, issuers from developing countries have launched US$ 10 billion in Green Bonds. Currently, the Chinese and Indian markets are among the fastest growing, mainly due to the explicit support of their national governments.

The energy sector is still the most used segment of the resources obtained with the issuance of Green Bonds. However, the transportation and civil construction sectors are beginning to stand out with significant global growth, mainly due to the issuance of Chinese bonds.

Use of Green Bonds Resources by Sector

fireshot-capture-294-https___cmsportal-febraban-org-br_arquivos_documentos_pdf_titulos-ver

Source: Guia para Emissão de Títulos Verdes no Brasil 2016 / Climate Bonds Initiative 2016

. Energy: 44%

. Construction: 24%

. Transportation: 12%

. Water: 11%

. Waste and pollution: 5%

. Agriculture and Forestry: 2%

. Adaptation: 2%

In the calculations of the Climate Bonds Initiative, Green Bonds traded at US$ 140 billion in September 2016, as well as another US$ 576 billion of those papers that have the potential to be classified as such. In summary: Green Bonds are financial instruments tied to additionalities or environmental attributes that promote benefits to mitigate the effects caused by climate change.

The potential of the Green Bonds market in Brazil

In Brazil, fixed income papers that could have environmental/climatic additionalities included and be classified as Green Bonds are:

. Quotas of Investment Funds in Credit Rights (FIDC)

. Agribusiness Receivable Certificate (CRA)

. Certificate of Real Estate Receivables (CRI)

. Debentures

. Incentive Debentures for Infrastructure

. Financial Letters

. Promissory Notes

If the focus is the international market, they may be issued as bonds, notes or commercial papers, using any regulated instrument in the chosen jurisdiction.

The “Guia para Emissão de Títulos Verdes no Brasil 2016” (Guide for the Issuance of Green Bonds in Brazil 2016, document released by the Brazilian Federation of Banks – Febraban and the Brazilian Business Council for Sustainable Development – Cebds) presents an excellent diagnosis of the potential of the Green Bonds market in Brazil. The methodology identifies the sectors with the greatest capacity to develop Green Projects and that “could receive resources obtained through the issuance of Green Bonds in the primary capital market.”

According to the document, the sectors with great investment possibilities for Green Bonds issues are: agribusiness; forest; energy; and infrastructure, the latter specifically in the areas of transportation, construction and sanitation. According to the Climate Bonds Initiative, the market for Brazilian fixed-income securities with positive environmental characteristics amounted to US$ 2.9 billion in July 2016, including those labeled and not labeled Green Bonds.

“These sectors are fundamental to Brazil’s economic growth and its transition to a low-carbon economy. The Green Bonds represent a great opportunity to direct capital to the investments needed to achieve the climate change objectives established at COP21 through the Paris Agreement”, says the Febraban / Cebds Guide.

Participants, guidelines and principles

The global financial market already has specific guidelines drawn up by international institutions for the development of Green Bonds issues. As a reference, we can mention the principles created by multilateral organizations such as the World Bank, Inter-American Development Bank (IDB), International Finance Corporation (IFC), European Investment Bank (EIB) and International Capital Markets Association (ICMA).

Composed of more than 50 financial institutions, ICMA stands out for the development of globally recognized Green Bond Principles, concepts that provide guidelines for market action in these securities related to: identification of the eligibility criteria of the projects financed; selection of projects; management of resources; monitoring and reporting.

The main players involved in the Green Bonds segment are the same as the traditional Capital Markets: issuers; underwriters; investors; regulators and supervisors; rating agencies; fiduciary agents; financial auditors; systems for registration, deposit, settlement and trading of securities; legal advisors.

In addition to these usual members, the Green Bonds market also has the participation of a third party: the External Evaluation Agents, who, through an independent opinion, attest to the positive environmental attributes of the projects for which resources Shall be allocated.

The Green Bond Principles define the following External Assessment formats:

1 – Opinion

2 – Verification

3 – Certification

4 – Green Rating

The characteristics of this evaluation and its modalities are detailed as follows:

Opinion

. Opinion issued by consultancies or institutions with recognized experience and technical capacity in the area of sustainability.

. It does not require the existence of pre-determined criteria.

. The so-called “Second Opinion” in the international market can fall into this category.

Verification

. Opinion issued by audit firms or consultancies / institutions with recognized experience and technical capacity in the area of sustainability.

. Verification carried out based on internal criteria or declarations (claims) of the issuer itself.

. It is also possible to refer to external guidelines and principles, such as the “Green Bond Principles”.

Certification

. Opinion issued by audit firms and other institutions accredited / approved by the certifying body.

. Evaluation based on external criteria (certification standard).

. The “Climate Bond Standards” are currently the only Green Bonds certification available.

Green Rating

. Performed by rating agencies or research institutions.

. Assignment of a specific green score for the title (not for the issuer in general).

. In 2016 the agency Moody’s released its rules for rating and rating for Green Bonds.

Source: Guia para Emissão de Títulos Verdes no Brasil 2016 / Green Bond Principles (2016)

“It should be noted, however, that it is the responsibility of the issuer of the Green Title to ensure that the allocation of resources obtained and the monitoring of the environmental performance of the projects occur as planned. In this sense, the External Evaluation is the best way to verify the fulfillment of these commitments and can also be used in the process of communicating the results to the investors and coordinators [of the emissions]”, suggests the Febraban-Cebds Guide.

Issue to finance projects or green investments

Companies active in the Brazilian market may finance or refinance, with the issuance of Green Bonds, a single or a set of identified and / or specific Green Projects. Corporations may also choose to issue Green Bonds to finance a green investment program, without the respective projects being specified at the time of issuance. In these cases, the issuer would only indicate which category of projects the resources would be allocated (eg energy efficiency, renewable energy generation, effluent treatment, etc.), leaving detail to be made later.

Benefits for the issuer of Green Bonds(1)

1) Diversification and / or expansion of the investor base:

. Access to new investors, such as sustainable funds (which consider environmental, social and governance issues – ASG), investors with a specific mandate to purchase Green Bonds or with long-term objectives (such as pension funds, insurance companies and signatories of the PRI – Principles For Responsible Investment), which by their characteristics can keep the paper in portfolio even in times of crisis.

2) Reputation gains:

. Greater visibility for Green Projects;

. A positive marketing tool, differentiating the Green Bonds issue from conventional issues;

. Recognition of the issuer’s commitment to the conservation of the environment and mitigation and prevention of the risks posed by climate change.

(1) According to “Guia para Emissão de Títulos Verdes no Brasil 2016”
(the Guide for the Issuance of Green Titles in Brazil 2016)

Investor Benefits for Green Bonds(2)

1) Greater transparency in the use of resources:

. The projects financed with funds obtained through the issuance of Green Bonds are generally structured and framed within a long-term strategy of the company, having to adhere to its socio-environmental responsibility policy and reveal governance for the sustainability of its business.

. The clarity and specific destination in the application of the resources and in their monitoring can cause the Green Projects to present lower risks associated to the investment.

2) Convergence with voluntary commitments:

. Investments in Green Bonds facilitate the fulfillment of commitments to the resource managers signatories of the PRI and the Institutional Investors Group on Climate Change (IIGCC). These voluntary commitments, undertaken by more than 1,500 national and international organizations, guide investments in projects that favor sustainable environmental and social development;

. For specialized investors with sustainability mandates, the availability of Green Bonds facilitates the identification of projects and target assets in the fixed income market.

3) Financial return:

. The Green Bonds, in general, present financial return and prices defined by the market, as it happens for the conventional titles.

(2) According to “Guia para Emissão de Títulos Verdes no Brasil 2016”
(the Guide for the Issuance of Green Titles in Brazil 2016)

An “Opportunities Market” for insurers in Brazil!

Financial institutions can play a prominent role in the Green Bonds market, as they can be issuers, coordinators of corporate issues or even act as investors. It is an “Opportunities Market” not yet explored by the Insurance Sector: currently only commercial and development banks stand out among the most relevant financial institutions in the international Green Bonds market.

Therefore, participation in the Green Bonds Market – whether as issuer, coordinator or investor – is a great opportunity for Brazilian insurers, especially corporations in the segment that plan to expand their social and environmental actions and strategies. Green investments to mitigate the emission of greenhouse gases (GHG) and climate risks.

As issuers, financial institutions may issue Green Bonds to finance Green Portfolios of their clients (financing or green loans). But also, like companies, they can issue bonds to finance or refinance their own Green Projects. “One example is the implementation of a broad energy efficiency program in its administrative units, data centers or branch network”, says the Febraban-Cebds Guide. The document also points out that such institutions “can also become major issuers of Green Bonds to finance companies without access to the capital market, thus helping to leverage the ‘green economy’.” That is: the Green Bonds market is a business to be pursued by Brazilian insurers!

In international experience, Green Bonds issuance programs by financial institutions focus primarily on loan portfolios for renewable energy, energy efficiency and sustainable construction projects. The following table also shows examples of other sectors and areas as an option for projects to be financed through green bonds.

Examples of Eligible Activities for Green Bond Financing Projects:

Renewable energy

. Generation, transmission, storage or use of solar, wind, bioenergy, hydro, tidal energy, geothermal

Energy Efficiency (equipment and products)

. Sustainable buildings (retrofit and new constructions)

. Efficient storage systems

. Efficient heating systems

. Smart grids

Pollution prevention and control

. Wastewater treatment

. Emission control (GHG and other pollutants)

. Decontamination of soil

. Recycling and generation of high value-added products

. Generation of waste energy

. Analysis and environmental monitoring

Sustainable management of natural resources

. Low carbon farming

. Forestry and sustainable forest management

. Restoration of native vegetation

. Recovery of degraded areas

. Fisheries and aquaculture

Biodiversity conservation

. Protection of terrestrial, coastal and marine habitats

. Sustainable use of biodiversity

. Implementation of ecological corridors

Clean transportation

. Production of electric and hybrid vehicles

. Non-motorized vehicles

. Railway

. Multimodal

. Infrastructure for clean vehicles

Sustainable management of water resources

. Treatment and remediation of water

. Infrastructure for capture and storage

. Infrastructure for distribution

. Watershed protection

. Sustainable systems of urban drainage

. Flood control systems

Adapting to climate change

. Climate monitoring or early warning

. Resilience infrastructure (dams and/or other structures)

. Development/use of varieties resistant to external climatic conditions

Products, production technologies and eco-efficient processes

. Ecological stamps / sustainability certificates

. Development of technology and/or biodegradable or renewable products

. Eco-efficient processes / products

Source: Guia para Emissão de Títulos Verdes no Brasil 2016

Responsible for moving significant volumes in the financial market, with significant investment portfolios, institutional investors are key players in the Capital Market.

In this sense, insurers, operating in the management of third party resources, operate with a long-term perspective, a fundamental vision to foster their active participation in the Green Bonds market.

This increase will not only benefit the insurance companies, but the entire Brazilian Insurance Market. In addition to encouraging innovative business in the financial sector, it will propagate cutting-edge environmental and sustainable perspectives and parameters – in line with mitigation aspects of climate impacts – capable of generating innovations in products, programs and projects in the fields of education, research and relationship with insureds, strengthening the transition of the Insurance Sector and its contribution to the achievement of a global society and economy of low carbon.

Antonio Carlos Teixeira
Communication Consultant for Sustainability, Corporate Advisor for transition to a low carbon society, editor of TerraGaia blog

http://www.terragaia.wordpress.com

antonioteixeira@nym.hush.com

References

. FEBRABAN; CEBDS. Guia para Emissão de Títulos Verdes no Brasil 2016. Outubro 2016. Available in: http://cebds.org/publicacoes/guia-para-emissao-de-titulos-verdes-no-brasil-2016/#.WCcLX_krKUm. Access in: Nov. 12 2016.

. FEBRABAN; CEBDS. Guia para Emissão de Títulos Verdes no Brasil 2016. Version for public consultation, Sept. 16 2016. Available in: https://cmsportal.febraban.org.br/Arquivos/documentos/PDF/Titulos%20Verdes%20-%20Guia%20Febraban%20CEBDS%20-%20vConsulta%20Publica_final.pdf. Access in: Nov. 12 2016

. G20. Climate Finance Study Group – Promoting efficient and transparent provision and mobilization of climate finance to enhance ambition of mitigation and adaptation actions. June 2016. Available in: http://g20.org/English/Documents/Current/201608/P020160815357624187353.pdf. Access in: Nov. 14 2016.

. UNDP. UNDP and Climate Change – Zero carbono, sustainable development. November 2015. Available in: http://www.undp.org/content/dam/undp/library/Climate%20and%20Disaster%20Resilience/UNDP_and_Climate_Change.pdf. Access in: Nov. 13 2016.

. WIND EUROPE. Making Transition Work. September 2016. Available in: https://windeurope.org/wp-content/uploads/files/about-wind/reports/WindEurope-Making-transition-work.pdf. Access in: Nov. 13 2016.

. WORLD BANK. Green Bonds: working towards a harmonized framework for impact reporting. December 2015. Available in: http://treasury.worldbank.org/cmd/pdf/InformationonImpactReporting.pdf. Access in: Nov. 10 2016.

Suggested sites on green bonds and related matters:

. Bloomberg
http://www.bloomberg.com/

. Climate Bonds Initiative
https://www.climatebonds.net/

. Environmental Finance
https://www.environmental-finance.com/

. European Investment Bank (EIB)
http://www.eib.org/

. Green Bond Principles
http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/green-bond-principles/

. Inter-American Development Bank, IDB
http://www.iadb.org/

. International Energy Agency, IEA
https://www.iea.org/

. Institutional Investors Group on Climate Change (IIGCC)
http://www.iigcc.org/

. International Capital Markets Association (ICMA)
http://www.icmagroup.org/

. International Finance Corporation (IFC)
http://www.ifc.org/

. Principles for Responsible Investment (PRI)
https://www.unpri.org/

. World Bank
http://www.worldbank.org/

. World Resource Institute (WRI)
http://www.wri.org/
Acesse a versão em língua portuguesa do artigo:

https://terragaia.wordpress.com/2016/12/28/green-bonds-o-mercado-de-titulos-verdes-e-as-oportunidades-para-o-setor-de-seguros-brasileiro-2/

Publicado em Aquecimento global, Cambio climático, Carbon, Carbono, Clima, Climate Change, climate risk, Climate Risk Insurance, CO2, Comunicação Ambiental, Consciência ambiental, COP21 Paris França 2015, Corporate Responsibility, Corporate Sustainability, Desenvolvimento, Desenvolvimento sustentável, Economia, economia de baixo carbono, Economia Verde-Green Economy, Empresas, Energías Renovables, Energia, Energias Renovables, Energias renováveis, Human activities and climate change, Insurance and Sustainability, low carbon economy, Mudança climática, Responsabilidade corporativa, Responsabilidade Social Empresarial RSE, Responsabilidade socioambiental, Risk Insurance, Seguro e Meio Ambiente, Seguro e mudanças climáticas, Seguro e sustentabilidade, Sustainability, Sustainable Cities, Sustentabilidade, transição para uma economia de baixo carbono, Transição para uma Sociedade de Baixo Carbono, Transition to a low carbon society, Transition to Low Carbon Economy | Marcado com , , , , , , , , , , , | Deixe um comentário

Uma inesperada homenagem nos 35 anos da revista Cadernos de Seguro

O Diretor do Centro de Pesquisa e Economia do Seguro (CPES), C)laudio Contador, homenageia o ex-editor da revista, Antonio Carlos Teixeira, na presença do Diretor Executivo da Escola Nacional de Seguros, Renato Campos Martins Filho | Foto: Rosane Beckerman

O Diretor do Centro de Pesquisa e Economia do Seguro (CPES), Claudio Contador, homenageia o ex-editor da revista, Antonio Carlos Teixeira, na presença do Diretor Executivo da Escola Nacional de Seguros, Renato Campos Martins Filho | Foto: Rosane Beckerman

Não poderia deixar de registrar a honrada e inesperada homenagem feita pela Escola Nacional de Seguros durante a cerimônia dos 35 anos da revista Cadernos de Seguro, onde atuei como Editor por 13 anos (1997-2010). Na foto, com o Diretor do Centro de Pesquisa e Economia do Seguro (CPES), Claudio Contador, e com o Diretor Executivo da Escola Nacional de Seguros, Renato Campos Martins Filho (Aspargus, Rio de Janeiro, 6 Dezembro 2016).

Publicado em Comunicação, Insurance and Sustainability, Jornalismo Ambiental, Seguro e sustentabilidade | Marcado com , , | Deixe um comentário

Investing for resilience

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Executive Summary

As climate change progresses, severe weather such as flood, winds, and drought will increasingly impact people’s health and wellbeing, as well as the broader economy. Climate change resilience will become increasingly important for society.

The insurance industry has a significant part to play in helping to promote societal resilience, given its expertise in assessing and managing risk and the vital role of insurance as a financial risk transfer mechanism. However, a protection gap is beginning to emerge as societal exposure to climate risk increases whilst insurance penetration declines.

Consequently, some commentators are questioning why the industry has not been more proactive in helping society to enhance its physical resilience to climate risks, particularly
given its potential influence over the broader financial markets. With over US$30 trillion in invested capital, the industry’s asset management activities in particular have drawn increasing attention because of their potential to support the transition to a low carbon, climate-resilient economy. Although the current understanding of the potential financial risks posed by climate change—to companies, investors, and the financial system as a whole—is still at an early stage, the lack of consistent information has hindered investors and others from considering climaterelated issues in their asset valuation and allocation processes. Despite this the role that insurers’ asset management activities have played in respect to climate change mitigation has been prominent, with several of the larger international insurers making recent public announcements of disinvestment, from
carbon intensive assets. However, at the same time there has been much less emphasis on understanding how the insurance industry could use its influence to promote broader societal resilience to climate-related perils.

The objective of this study is therefore to explore the relationship between the insurance industry, its investment activities and its potential support for climate resilience. This has been addressed through an overview of the existing and potential capabilities within the insurance industry’s asset management, underwriting and risk management activities that could promote broader societal resilience to climate risk. This report is intended to act as a foundation for further research and discussion across this crucial area. In order to provide a broad overview, we engaged with a wide range of stakeholders across the industry’s underwriting and asset management activities, as well as a variety of external stakeholders including representatives from rating agencies, engineering firms and central and local
governments.

We found that insurers are not the natural investors in resilience infrastructure many external commentators perceive them to be. Whilst there is clearly a strong customer-oriented motive to improve risks through good risk management to reduce losses for an individual insurer there is not a direct relationship between increased investment in resilience infrastructure and increased underwriting profits. However, it is evident that insurers have significant opportunities to support climate resilience across the broader financial markets through three distinct areas of activity:

1. Considering resilience within insurers’ own investment activities,
2. Promoting resilience indirectly across the broader financial markets; and
3. Promoting societal resilience to climate risk in general.

This report identifies a number of specific actions that individual insurers (and other industry stakeholders) can take to promote climate resilience. While the individual impact of these actions may be limited, they could be significant collectively, especially if used to reinforce and support one other.

The report also identifies a major contribution that could be made by a number of industry participants working in partnership. It is notable that there is currently no effective method of measuring resilience: the resilience of investments, of property, of municipalities, of corporates – indeed any entity for which resilience is important. A widely applicable rating system would enable resilience to be considered across many areas of decision-making, including asset management, policymaking, and risk management. For example:

• Assessing the efficacy of actions taken to improve resilience;
• Supporting policymaking and urban planning;
• Supporting resilience impact bonds;
• Setting standards for new buildings;
• Supporting decision-making for investment in resilience;
• Service-level agreements for resilience services; and
• Supporting communication and education.

As a common language readily understandable by a broad range of stakeholders, a resilience rating system would provide a basis for communication. But defining such a system is not easy, and would require significant input and co-operation from many sources. The insurance industry, with its broad range of stakeholders and involvement in so many spheres of economic activity, is well placed to help lead and co-ordinate this effort and many new commercial opportunities could be realised by doing so.

See the full report:

http://www.cisl.cam.ac.uk/publications/publication-pdfs/Investing-for-resilience.pdf

Publicado em Cambio climático, Clima, Climate Change, climate risk, Climate Risk Insurance, economia de baixo carbono, Economia Verde-Green Economy, Empresas, Environmental Impacts, Estudos ambientais, Human activities and climate change, Impactos ambientais, Impactos Ambientales, Impacts Environnementaux, Insurance and Sustainability, Mudança climática, Pesquisas ambientais, Responsabilidade corporativa, Responsabilidade socioambiental, Riscos, Riscos de desastres, Risk Insurance, Seguro e Meio Ambiente, Seguro e mudanças climáticas, Seguro e sustentabilidade, transição para uma economia de baixo carbono, Transição para uma Sociedade de Baixo Carbono, Transition to a low carbon society, Transition to Low Carbon Economy | Marcado com , , | Deixe um comentário

Closing the protection gap – ClimateWise Principles Independent Review 2016

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Executive Summary

The Paris Agreement on climate change came into force in November 2016, a clear signal of international commitment to decarbonisation to contain the negative impacts of climate change. That momentum has been maintained over the last year since the negotiations last December.

At the same time, there is a widening of the global protection gap – the divide between economic and insured losses. This is particularly the case in developing countries most vulnerable to climate impacts. The trends of climate change, the transition to a low carbon economy and a growing protection gap will require the insurance industry to evolve and broaden its role in society to manage the impacts of climate change. This will involve influencing authorities to ensure a more enabling environment for insurance, increasing the availability and reliability of technology-enabled data, and, crucially, moving beyond financial risk transfer and ensuring greater collaboration across sectors and markets to increase societal resilience. The low interest rate environment and the structural growth inherent in emerging economies may just be the right incentive for the insurance industry to further venture into those economies and geographies most vulnerable to climate risks. Does the progress made by the ClimateWise members in 2016 show they are ready and well placed to do this?

The 2016 ClimateWise Principles review continues to demonstrate how members are evolving their management of climate risks and developing their roles as key risk managers to societies and economies. Overall, this year saw a continued rise in the average performance score up to 59 per cent from 56 per cent in 2015. Four leading members have now exceeded the 80 per cent mark of high performance, compared with just one member last year.

Unsurprisingly, ClimateWise members have demonstrated that over the last year they have played active roles in leveraging their insight to inform policy making and influence the climate change agenda, in particular before, during and after the Paris climate negotiations. Members show marked improvements in conducting research, improving data quality regarding climate risk, and using the outputs of these activities to inform business decisions and strategy. Members also disclosed how they are increasing their efforts to provide customers with better information, tools and services to help them assess their own exposure to climate risk.

Despite another increase in overall average score about a third of members remain below 50 per cent, still struggling to integrate climate change across their business. There was also a notable decrease in disclosure regarding members’ efforts to evaluate the implications of climate change on the performance of their investments. This is a disappointing development given the broader advances made across financial sectors in
understanding climate risk in investment portfolios, and the warning in last year’s Prudential Regulation Authority (PRA) report that the transition to a low carbon economy may impact insurance companies’ investment portfolios.

In this report we highlight some of the developments that will impact the insurance industry in the coming years. We look at the work of the Financial Stability Board’s (FSB’s) Task Force on Climate-related Financial Disclosures and how the industry will face higher expectations from investors, rating agencies, regulators and other stakeholders as a disclosure provider, but will also benefit as an underwriter and investor from an increase
in risk data in the market. We also explore what climate change means for the ‘insurer of the future’ and how the industry should be looking ahead to review the adequacy of their corporate resources and structure.

Overall we are seeing steady progress from the ClimateWise members in managing climate risk across most aspects of the business, but this is still lagging behind the step change witnessed in international political commitment to addressing climate change in the last year. Members must ensure this opportunity – to support clients in understanding and managing risk, to provide solutions for closing the protection gap in vulnerable geographies and to deploy investments which decarbonise and build climate resilience in the economy – is understood by key decision-makers and embedded in thinking across the corporate ecosystem. This is the vision of the ClimateWise Principles and the Paris Agreement has made the Principles more relevant than ever before.

See the full report:

http://www.cisl.cam.ac.uk/publications/publication-pdfs/Closing-the-protection-gap-ClimateWise-Principles-Independent-Review-2016.pdf

Publicado em Cambio climático, Clima, Climate Change, climate risk, Climate Risk Insurance, economia de baixo carbono, Economia Verde-Green Economy, Empresas, Human activities and climate change, Impactos ambientais, Impactos Ambientales, Impacts Environnementaux, Insurance and Sustainability, low carbon economy, Mudança climática, Risk Insurance, Seguro e Meio Ambiente, Seguro e mudanças climáticas, Seguro e sustentabilidade, transição para uma economia de baixo carbono, Transição para uma Sociedade de Baixo Carbono, Transition to a low carbon society, Transition to Low Carbon Economy | Marcado com , , , , , , , | Deixe um comentário

ClimateWise launches two reports that warn of growing protection gap due to rising impact of climate risks

climatewise

 

By Cambridge Institute for Sustainability Leadership

 
ClimateWise, a global network of 29 insurance industry organisations which is convened by the University of Cambridge Institute for Sustainability Leadership, has warned of the urgent need to address the growing $100 billion annual climate risk ‘protection gap’ in two new reports; Investing for Resilience and the ClimateWise Principles Independent Review 2016.

The two reports were launched today [December 7 2016] at a breakfast briefing with over 100 delgates from across the insurance industry including ClimateWise members. Since the 1950s, the frequency of weather-related catastrophes, such as windstorms and floods, has increased six-fold. As climate-related risks occur more often and predictably, previously insurable assets are becoming uninsurable, or those already underinsured further compromised.

The economic impact of these natural catastrophes is growing quickly, with total losses increasing five-fold since the 1980s to around $170bn today. Over the same period, the average annual protection gap has widened quickly from $23bn to $100bn today, according to analysis by ClimateWise member, Swiss Re.

“The insurance industry’s role as society’s risk manager is under threat,” said Maurice Tulloch, Chairman of Global General Insurance at Aviva and Chair of ClimateWise, the network convened by the University of Cambridge Institute for Sustainability Leadership, which authored the reports. “Our sector will struggle to reduce this protection gap if our response is limited to avoiding, rather than managing, society’s exposure to climate risk. As a risk carrier and risk manager, the insurance industry has significant, and as yet untapped, potential to lead others, in reducing this gap.”

ClimateWise’s Investing for Resilience report highlights ways that insurers can start to align their asset management, underwriting and risk management activities to support greater investments in resilience across financial markets. Recommendations include support for green bonds, resilience impact bonds and investments in resilience-enhancing infrastructure.

“The insurance industry will inevitably be impacted by the physical, transition and liability risks that climate change presents,” said John Scott, ClimateWise’s ‘Investing for Resilience’ Chair and Chief Risk Officer, Zurich Global Corporate, Zurich Insurance Group. “Finding viable ways to help society adapt and become more resilient to the inevitable changes related to ongoing climate change is vital.”

The report also calls for the introduction of a resilience rating system to help asset managers and policymakers integrate resilience as a consideration into their investment portfolios.

While traditional responses to rising levels of risk – to re-price, withdraw or transfer exposure to others – will always remain a central feature of the industry’s role as society’s risk manager, ClimateWise believes that closer alignment between the underwriting and asset management sides of the industry must play a greater role in the response to climate change.

“Industry leaders now have the opportunity to step up to the challenge outlined by the Paris Climate Agreement,” Tom Herbstein, Programme Manager of ClimateWise added. “In particular, the industry must help shift capital flows into climate-resilient assets and resilience-enhancing investments rather than simply struggling to maintain its current underwriting exposure.”

Since 2009, ClimateWise members have been benchmarking their response to the protection gap in line with the six ClimateWise Principles. Once again, this year’s submissions are summarised in the ClimateWise Principles Independent Review 2016 reviewed by PwC.

“Climate change presents many risks and opportunities for insurers,” said Jon Williams, Partner, Sustainability & Climate Change at PwC and member of the FSB Task Force on Climate-related Financial Disclosures. “This year’s review highlights clearly that insurers can and need to do more, specifically within their own investment activities, in response to climate-related perils.“

ClimateWise also supports industry innovation via its Societal Resilience Programme. The Programme commissions research into how the insurance industry can better leverage its risk carrying, risk management and investment activities. It explores how, by proactively addressing the protection gap, insurers can benefit by commercialising other parts of their value chain, for example through the provision of advisory services. It focuses on three priority areas, namely regulation, the financial markets and city-level resilience.

Read the reports

Closing the protection gap: ClimateWise Principles Independent Review 2016

Investing for Resilience

Publicado em Cambio climático, Clima, Climate Change, climate risk, Climate Risk Insurance, Corporate Responsibility, Environmental Impacts, Environmental journalism, Environmental researchs, Estudos ambientais, Human activities and climate change, Impactos ambientais, Impactos Ambientales, Impacts Environnementaux, Insurance and Sustainability, Jornalismo Ambiental, Mudança climática, Pesquisas ambientais, Riscos, Risk Insurance, Seguro e Meio Ambiente, Seguro e mudanças climáticas, Seguro e sustentabilidade, transição para uma economia de baixo carbono, Transição para uma Sociedade de Baixo Carbono, Transition to a low carbon society, Transition to Low Carbon Economy | Marcado com , , , , , , | Deixe um comentário

Climate change threatens ability of insurers to manage risk

Extreme weather is driving up uninsured losses and insurers must use investments to fund global warming resilience, says study

 

Severe flooding in Carlisle, north-west England, December 2015. Photograph: Andrew Yates/Reuters

Severe flooding in Carlisle, north-west England, December 2015. Photograph: Andrew Yates/Reuters

 

By Damian Carrington, The Guardian

The ability of the global insurance industry to manage society’s risks is being threatened by climate change, according to a new report.

The report finds that more frequent extreme weather events are driving up uninsured losses and making some assets uninsurable.

The analysis, by a coalition of the world’s biggest insurers, concluded that the “protection gap” – the difference between the costs of natural disasters and the amount insured – has quadrupled to $100bn (£79bn) a year since the 1980s.

Mark Carney, the governor of the Bank of England, warns in the new report that: “Over time, the adverse effects of climate change could threaten economic resilience and financial stability [and] insurers are currently at the forefront.”

The ClimateWise coalition of 29 insurers, including Allianz, Aon, Aviva, Lloyd’s, Prudential, Swiss Re and Zurich, conclude that the industry must use more of its $30tn of investments to help fund increased resilience of society to floods, storms and heatwaves.

The Bank of England warned in 2015 that insurance companies could suffer a “huge hit” if their investments in fossil fuel companies were rendered worthless by action on climate change and some insurers have already shed investments in coal.

The ClimateWise report, published on Wednesday [December 7 2016], also says the industry must also use its risk management expertise to convince policymakers in both the public and private sector of the urgent need for climate action.

The industry’s traditional response to rising insurance risks – raising premiums or withdrawing cover – would not help deal with the rising risks of global warming, it said.

“The insurance industry’s role as society’s risk manager is under threat,” said Maurice Tulloch, chairman of global general insurance at Aviva and chair of ClimateWise. “Our sector will struggle to reduce this protection gap if our response is limited to avoiding, rather than managing, society’s exposure to climate risk.”

The report said that, since the 1950s, the frequency of weather-related catastrophes has increased sixfold. As climate-related risks occur more often and more predictably, previously insurable assets are becoming uninsurable, or those already underinsured are further compromised, it said.

The economic impact of these natural catastrophes is growing quickly, according to Swiss Re, with total losses increasing fivefold since the 1980s to about $170bn today. This increase is partly due to an increase in extreme weather but also due to an increase in assets as cities and towns have grown, especially in vulnerable locations such as on coasts.

“Insurance provides a very important role in providing support for people in their time of need,” said John Scott, chief risk officer at the Zurich Insurance Group and chair of ClimateWise’s “Investing for Resilience” programme. “Finding viable ways to help society adapt and become more resilient to the inevitable changes related to ongoing climate change is vital. It is very clear that as carbon dioxide concentrations increase, we should expect to see more patterns of severe weather disruption.

“We understand climate change as underwriters, because we are trying to manage the physical consequences of the severe weather we get from climate change, so we can be a really important industry in terms of informing policy makers, either in the public or private sectors, about the pace at which we should make the change from a high-carbon to low-carbon economy.”

Other actions insurance companies can take are to work with their customers to make them more resilient to extreme weather and encourage the development of insurance markets in poorer nations that are growing rapidly, the report said.

Carney, who has warned repeatedly of the serious risks posed by climate change, said: “Insurers, including those who are members of ClimateWise, have unique risk-management expertise to help address the protection gap among those who are most exposed to climate risk.”

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