ICMIF members have USD 1 trillion in assets under management in investments which are aligned to sustainable investment frameworks, according to the new 2023 edition of the ICMIF Members Sustainable Investment Report, an increase of 32% compared to the 2022 report.
Data in the report shows that ICMIF members have aligned USD 1,003 billion with sustainable investment frameworks, which includes green bonds, social bonds and resilience bonds for example; many of which will be targeting climate change and its effects. This represents an increase of 32% from the USD 759 billion collectively invested by members in 2022.
Mutual and cooperative insurers represent almost 30% of the world’s insurance market and USD 10.4 trillion in assets.
Speaking about the latest report’s publication, Shaun Tarbuck, ICMIF CEO said: “The latest edition of the ICMIF Members Sustainable Investment Report reveals the results of the 2023 ICMIF Sustainability Investment Framework Survey which are testament to how our members have continued to increase levels of alignment with sustainable frameworks since the inception of our survey in 2019. 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.”
The report highlights ways in which ICMIF members are continuing to lead by example in in terms of sustainable investments.
Key findings:
- ICMIF members confirmed that 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.
- Our survey saw 60% of our members who responded to the survey* report that they invest in impact investing, up from 55% in the 2022 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.
- 40% 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.
Download the report to learn more about the sustainable investments being made by ICMIF members and reflect on how you and your company can either bolster your investment strategies OR start your journey to a more sustainable future.
For more information on how you can get involved, please contact Steve Leicester, Chief Finance Officer or Liam Carter, Senior Vice-President, Sustainability.
* In total, 136 surveys were issued to ICMIF members, and 35 members replied to the survey, representing 26% of the ICMIF membership. Those that responded represented 74.4% of ICMIF members’ assets under management for 2023, equating to USD 1.3 trillion.
