Willis Towers Watson launches framework for climate transition assessment
Willis Towers Watson has launched Climate Transition Pathways (CTP), an accreditation framework designed to help insurance companies better appraise the progress companies have made in their climate transition plans.
CTP is intended to provide a consistent approach to assessing how companies are transitioning to a low-carbon economy, in accordance with the Paris Agreement. Organisations meeting these principals and achieving accreditation will gain access to insurance capacity and capital to support their orderly transition and help them meet their low-carbon commitments.
The CTP governance committee works with independent third-party groups including Volans, a consultancy responsible for the Bankers for Net Zero initiative, and the Climate Bonds Initiative (CBI), a global investment organisation committed to climate resilience. They will also create industry-specific solutions to be rolled-out over the coming months.
Mark Carney, UN special envoy for climate action and finance and the Prime Minister’s finance adviser for COP26, said Willis Towers Watson was delivering a valuable service in helping businesses achieve their climate targets.
“To achieve net zero we need a whole economy transition - every company, bank, insurer and investor will have to adjust their business models, develop credible plans for the transition and implement them,” he said. “As insurers take steps to align their underwriting activities with the transition, companies will increasingly need to display that they have the right plans or risk losing access to insurance.”
Rowan Douglas, head of Willis Towers Watson’s climate and resilience hub, said: “By incubating CTP we are helping lead the industry in ensuring... organisations are supported through an orderly transition and can continue to access insurance and benefit from a greater level of certainty around the future availability of risk capacity, helping them deliver a more sustainable future.”
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