DECEMBER 2022CIOAPPLICATIONS.COM8inancial impacts from environmental changes over the last five years has been a wakeup call for both regulators and financial services industry, particularly insurance. Climate change has now become the leading strategic risk organizations face. This is due to the breadth of risks and impacts environmental changes create. In 2021 APRA developed a guide on understanding and managing financial risks of climate change (CPG 229) with the promise of more supervisory attention to understand the full risks and deeper supervisory assessments. Whilst the information which was gained from industry surveys and the financial vulnerability assessments, emerging environmental risks were progressing at a rate that far exceeded most requirements or mitigation actions. This has led organizations to focus on Environmental, Social Governance ESG polices and strategy. What do we know so far?Environmental, Social Governance (ESG) refers to frameworks in place for organizations to manage risks and opportunities related to environmental, social and governance criteria. It should be considered as part of a holistic sustainability strategy. ESG FALISON CAMERON, HEAD OF GOVERNANCE, RISK & COMPLIANCE, YOUI INSURANCECXO InsightsIN MY VIEWAlison CameronNEW RISK EXPOSURES FACING INSURERS TACKLING CLIMATE CHANGE
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