In a year marked by financial volatility and a worsening trend of climate-related events, the 2023 Integrated Annual Report from Canadian ICMIF member Co-operators highlights a need to develop and invest in collaborative, innovative solutions to the challenges faced by Canadians.
While challenged by significant underwriting losses in its property and casualty line of business, driven in part by increased claims costs due to the high inflationary environment, buoyed in part by strong investment returns the Canadian financial services cooperative and insurer reported a net income before tax across its group of companies of CAD 310.6 million, maintaining its strong capital position. Driven by its purpose of “Financial security for Canadians and our communities”, Co-operators says it has leveraged this strength to invest significantly in climate solutions, community resilience, and a net-zero, sustainable economy.
In addition to CAD 2.77 billion paid in claims and benefits to its clients in 2023, Co-operators announced that it had directed a sizable proportion of its capital to build the sustainability and resilience of Canadians. By the end of 2023, 48.4% of its invested assets – or CAD 5.90 billion – was invested in climate transition and impact investments that provide strong financial returns and positive social and/or environmental impacts that can be adequately measured, tracked and reported. Co-operators has committed that by 2030, 60% of its portfolio will be in impact, climate transition or resilience investments, and that by no later than 2050, its investment portfolio will be net-zero aligned.
Co-operators highlighted efforts to seed a new resilience investing market in Canada, mobilising private capital to build much-needed climate adapted infrastructure, and to strengthen household, community, and ecosystem-level resilience. To ensure this work is built with insights from and in collaboration with Canadian communities, Co-operators partnered with ICLEI Canada and ten Canadian municipalities from coast to coast on the Financing Resilient Infrastructure Project, where participating municipalities identified a suite of possible resilient infrastructure projects that private investors could help realise.
“Our industry and indeed all of society is reckoning with the impacts of climate change; impacts that will worsen unless we move to better protect our communities. As insurers, our business models need to expand to include a greater focus on resilience,” says Rob Wesseling, President and CEO of Co-operators, and Chair of ICMIF. “We need creative, whole-of-society partnerships and imaginative ideas that confront the climate crisis head on, because every day and every year that we don’t move forward with substantial action increases the risks and the costs to society.”
Co-operators says in its report that its “investment and asset management practices can help shift the economy toward one that supports sustainable, resilient communities.” By directing its financial strength toward mitigating and adapting to the climate crisis, and advocating for others to do the same, the Canadian cooperative aims to mobilise a targeted, coordinated effort to de-risk our society while supporting the environmental, social, and financial fabric of Canada.
The Integrated Annual Report serves as Co-operators’ Public Accountability Statement and is made available to all members, clients and the public.
For the full report, visit integratedreport.cooperators.ca
Detailed information on climate-related milestones, governance, strategy, risk-management and targets and metrics, can be found in Co-operators Climate Report at cooperators.ca/reports
