REPUTATIONAL RISK: THE TOP CLIMATE TRANSITION RISK MEASURED BY ORGANISATIONS

Seventy-seven per cent of respondents in this week’s Airmic Big Question said their organisations model and quantify reputational risk – making it the top climate transition risk that their organisations measure. The other key categories of transition risks as identified by the Task Force on Climate-related Financial Disclosures (TCFD) are policy and legal risks, technology risk and market risk.

Julia Graham, CEO of Airmic, said: “Organisations including the World Economic Forum (WEF) are warning of a disorderly climate transition. There is a risk of divergence on the direction of travel between governments which are setting climate targets, and businesses. To preempt any barriers to much-needed cooperation, Airmic is doing its part to foster more dialogue between insurers, brokers, and insurance buyers and risk professionals, to ensure that climate initiatives have the right intended consequences.”

In collaboration with KPMG and the Lloyd’s Market Association (LMA), Airmic has embarked on a project examining how the insurance sector as a whole can better support organisations through the climate transition. Airmic seeks to bring risk professionals together to work through some of these issues facing them and their organisations, through platforms such as its Climate Special Interest Group.

Leigh-Anne Slade, Head of Media, Communications and Interest Groups, Airmic, said: “With the rise in cases of greenwashing reported around the world, reputational risk – as it relates to the climate transition – has emerged as a top concern for Airmic members. Given the velocity of social media today, corporate reputations can be torn to shreds in minutes. Risk professionals must be on top of the risks associated with the climate transition.”

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We will be sharing the results of the Airmic Big Question with the press weekly.

You can also find the results here.

Media contact: Leigh Anne Slade
Head of Media, Communications and Interest Groups, Airmic
Leigh-Anne.Slade@Airmic.com
07956 41 78 77