Ceres Newsletter: New Report Shows Insurers Unprepared to Address Climate Risk

Ceres Newsletter -
October 2014


New Report Shows Insurers Unprepared to Address Climate Risk
Though insurers are on the front line of climate risks, many insurance companies are not prepared to address climate risks and opportunities. Insurer Climate Risk Disclosure Survey Report & Scorecard: 2014 Findings & Recommendations, a new report from Ceres, ranks property & casualty, health and life & annuity insurers on a half-dozen climate related indicators, using a four-tier scoring system, with "Leading," "Developing," "Beginning" and "Minimal" grades.
The report found strong leadership among fewer than a dozen companies, with 276 of the 330 companies receiving "Beginning" or "Minimal" ratings.
"As key regulators of this sector, we strongly encourage insurance industry leaders and investors who own these companies to take this challenge far more seriously," said Washington Insurance Commissioner Mike Kreidler, who wrote the report foreword and chairs the NAIC's Climate Change and Global Warming Working Group. "The insurance industry is uniquely positioned as the bearer of risk to make adjustments now to lessen dramatic impacts we know are coming. This is not a partisan issue, it's a financial solvency issue and a consumer protection issue."
Insurer Climate Risk Disclosure Survey Report & Scorecard: 2014 Findings & Recommendations also includes recommendations for insurance companies and regulators.
Learn more.
Download the report.
Businesses and Investors Come Together to Support Global Climate Action During NYC Climate Week Last month's NYC Climate Week and the UN Climate Summit garnered global attention. More than ever before, the business community was loud and clear about the urgency for climate action, making strong commitments to reduce their own impact while advocating for strong national and global policies to tackle climate change.
The actions and events at Climate Week highlighted the urgency needed to limit global temperature increases and avoid catastrophic climate change and that businesses, investors, and policymakers are ready to seize the opportunities presented by climate risk.
Ceres will be building on the momentum of Climate week to mobilize even more business leadership in the run up to the climate negotiations taking place in Paris next year.
Network Highlights
Company Network
Coca-Cola's 2013/2014 Sustainability Report, prepared in conformance with the GRI G4 guidelines, describes a new goal of reducing the carbon footprint of the "drink in your hand" by 25 percent by 2020. Recognizing that only 10 percent of the footprint is connected to its own manufacturing processes, Coca-Cola is finalizing the development of metrics and processes to use in collaboration with its suppliers to reduce emissions throughout the beverage value chain, from the supply of raw ingredients to the packaging, distribution, and refrigeration of Coca-Cola products. PepsiCo recently demonstrated the strength of its commitment to address climate change when it became the largest U.S.-based food and beverage company to sign the Ceres Climate Declaration. In conjunction with the release of its 2013 Sustainability Report , PepsiCo announced an additional climate mitigation goal focused on hydrofluorocarbons (HFCs), a chemical coolant that is a highly potent greenhouse gas. By 2020, PepsiCo will ensure that all future point-of-sale equipment (coolers, vending machines and fountain dispensers) purchased in the United States will be HFC-free, consistent with its existing international practice of ensuring that all new equipment uses 100 percent HFC-free insulation.
Learn more about the Ceres Company Network
Business for Innovative Climate & Energy Policy (BICEP)
Climate Declaration Reaches 1,000 business signatories
Business giants PepsiCo and Kellogg's signed onto Ceres' Climate Declaration, a corporate call to action for strong climate policies that now has more than 1,000 company signatories. Check out the new Climate Declaration website launched during climate week, showcasing how companies are going beyond signing the Climate Declaration to reduce their own climate impacts and advocating for national action to tackle climate change. Kellogg Company and Nestlé Join BICEP
We are excited to announce two new members, Kellogg Company and Nestlé, have joined BICEP to advocate for innovative climate and clean energy policies.
Please join us in welcoming our newest members!
Learn more about BICEP

Investor Network on Climate Risk (INCR)
Welcome to Three New INCR Members
We are excited to announce three new asset owners have joined our network, McKnight Foundation, The University of California and the Episcopal Church Pension Fund. Please join us in welcoming our newest members!
Investors Call for Action on Climate Change
Nearly 350 global investors managing over $24 trillion in assets called on world leaders to adopt strong climate polices to accelerate global clean energy investments. The Global Investor Statement, developed and led through a collaboration between INCR and investor networks around the world, calls for a meaningful price on carbon and an end to fossil fuel subsidies, and highlights the key role of investors in financing solutions to climate change.
Learn more about INCR