Urgent need to understand challenges faced in energy transition, Airmic says
There is an urgent need to understand the challenges faced by risk professionals and their organisations as they undergo the energy transition, Airmic said, after an Airmic Big Question survey conducted in August revealed that 29% of respondents said they had a low level of confidence in their organisation’s transition plans.
In collaboration with KPMG and the Lloyd’s Market Association (LMA), Airmic has been examining how the insurance sector as a whole can better support organisations through the climate transition. Two roundtables with Airmic members have been held, focusing on the transport, and the property and construction sectors.
“One of the key challenges today in making the transition relates to how an organisation can accurately measure its Scope 3 emissions,” Julia Graham, Airmic CEO, said. Scope 3 emissions refer to emissions that are the result of activities from the organisation’s value chain.
“Nevertheless, risk professionals should consider what climate data is material to their business, to determine the metrics that would drive their journey towards greater sustainability.”
Airmic’s work with KPMG and the LMA will culminate in a report to be released later in the year. The findings are aimed at informing underwriters, and the insurance industry more broadly, as to the issues faced by risk professionals and organisations – so that insurance solutions can better support businesses as they make the transition journey.
The joint roundtables have come as 65% of respondents in a separate Airmic Big Question said they are involved in their organisation’s climate transition plans. These Airmic members reported that they had been called upon for a range of tasks such as in developing transition scenarios, alongside colleagues in the environment team.
“Organisations are increasingly looking to Airmic members to be subject matter experts in sustainability who are working with the C-suite, to formulate realistic climate transition plans,” said Leigh-Anne Slade, Head of Media, Communications and Interest Groups, Airmic. “This calls for risk professionals on the whole to upskill themselves to tackle the major challenge today that is climate change.”