The latest edition of the ICMIF Members Sustainable Investment Report reveals the results of the 2023 ICMIF Sustainability Investment Framework Survey which is testament to how our members have continued to increase levels of alignment with sustainable investment frameworks since the inception of our survey in 2019. Indeed, ICMIF members have now aligned over USD 1 trillion in sustainable investment frameworks as detailed in the 2023 report, an increase of 32% compared to the 2022 report.
The insurance industry is uniquely positioned to assist with delivering climate action as it has both the assets to invest and the in-depth knowledge of the many risks that need to be mitigated both on a macro level and a community level to make people and the planet more resilient and ICMIF members are leading that change.
Key findings:
- ICMIF members confirmed that t USD 1,003 billion of their assets under management (AUM) are investments aligned to sustainable investment frameworks compared to USD 759 billion reported in our 2022 survey –an increase of 32%.
- This alignment of USD 1,003 billion to sustainable investment frameworks represents 79.4% of AUM for the members that responded to the survey, compared to 51% last year.
- There are multiple investment frameworks, but the members which responded to our survey show that the United Nations Environment Programme Finance Initiative Principles for Responsible Investment (UNEP FI PRI) and the Principles for Sustainable Insurance (PSI) were the most popular frameworks with 36% aligned to these frameworks (39% in 2022).
- Our survey saw 60% of our members report that they invest in impact investing, up from 55% in the 2022s survey. Impact investing by ICMIF members has grown a staggering 575% from last year, to USD 105.6 billion with five members stating that over 10% of their total AUM are invested in impact investing and one member is investing 68% of its AUM in impact investing.
- 57% of responding members invest in sustainable bonds including green bonds, social and/or resilience bonds, amounting to USD 18.3 billion, compared to USD 16.9 billion in the 2022 survey.
- 46% of ICMIF members have made net-zero commitments, up from 37% last year.
Sustainability reporting is growing with 77% of members stating that they actively report on sustainability in some way - 59% of ICMIF members said they were either compliant or expected to be Task Force on Climate-related Financial Disclosures (TCFD) compliant in the next few years.
