Association Of British Insurers Releases Guidance for Members on Taking Action Against Nature and Biodiversity Loss

The Association of British Insurers’ Action on Nature Guide

The Association of British Insurers (ABI) has published guidance, known as the Action on Nature Guide, to help insurers and long-term savings providers in the UK prevent biodiversity loss and become more “nature positive.” The guide aims to assist ABI member firms in understanding the challenges faced by policyholders and how they can protect themselves from the risks associated with nature and biodiversity loss.

Reasons for Taking Action

• Nature loss exposes policyholders’ properties and businesses to various risks, impacting markets and financial performance.
• Approximately half of global GDP, which amounts to USD 44 trillion, is highly to moderately dependent on nature, according to studies cited by the ABI.
• There is a link between the physical and mental health of the human population and healthy ecosystems, which affects the business models of long-term savings providers, life insurers, and health insurers.
• Inaction to prevent biodiversity and nature loss poses reputational risks for insurers.
• The transition to net zero emissions cannot be achieved solely through new technologies; nature plays a crucial role in decarbonization.

The Action on Nature Guide provides tools, best practice examples, and guidance from external organizations to help relevant firms develop strategies for addressing biodiversity loss. It also includes information on creating a heatmap to estimate potential impacts and showcases best practice examples from sector pioneers. The guide suggests setting up internal working groups within firms to establish guiding principles.

The ABI’s Action on Nature Guide is part of its Climate Change Roadmap, which sets targets for the sector to meet by 2025. These targets aim to halve emissions by 2030 and achieve net zero emissions by 2050.

The ABI is following the Kunming-Montreal Global Diversity Framework (GBF), adopted at COP15 in 2022, which commits nearly 200 countries to protect at least 30% of the planet’s lands, inland waters, coastal areas, and oceans by 2030.

Goldman Sachs Asset Management’s 12th annual insurance survey highlights that climate change considerations impact coverage decisions. Additionally, the European Insurance and Occupational Pensions Authority suggests in its staff paper on nature-related risks and impacts for insurance that insurers can reduce nature-related impacts through underwriting activities while mitigating risk to their investment portfolios.

Various insurers in the industry have taken different approaches to climate change. For example, Munich Re, the world’s largest reinsurer and a founding member of the Net Zero Insurance Alliance (NZIA), announced earlier this year that it would cease investment in and exclusive coverage of contracts and projects related to new oil and gas. However, some insurers, including Munich Re, have withdrawn from the Alliance due to U.S.-based challenges related to antitrust concerns. Furthermore, twenty-three Republican state attorneys general have expressed “serious concerns” about the NZIA’s requirements complying with federal and state laws.

SDGs, Targets, and Indicators in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 13: Climate Action
• SDG 15: Life on Land

The article discusses the prevention of biodiversity loss, which is directly related to SDG 15. It also mentions climate change considerations and the need for decarbonization, which are connected to SDG 13.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 15.5: Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity, and protect and prevent the extinction of threatened species.
• Target 13.2: Integrate climate change measures into national policies, strategies, and planning.

The article emphasizes the need for action to prevent biodiversity loss and protect nature, aligning with Target 15.5 under SDG 15. It also mentions the importance of integrating climate change measures into policies and planning, which relates to Target 13.2 under SDG 13.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned in the article that can be used to measure progress towards the identified targets:

• Indicator: Percentage of global GDP highly to moderately dependent on nature.
• Indicator: Adoption and implementation of measures to reduce the degradation of natural habitats and halt biodiversity loss.
• Indicator: Integration of climate change measures into national policies and planning.

The article mentions that approximately half of global GDP is highly to moderately dependent on nature, which serves as an indicator of the economic impact of biodiversity loss. The adoption and implementation of measures to reduce habitat degradation and biodiversity loss can be used as indicators of progress towards Target 15.5. Similarly, the integration of climate change measures into national policies and planning can be measured as an indicator of progress towards Target 13.2.

4. Table: SDGs, Targets, and Indicators

| SDGs | Targets | Indicators |

|——|———|————|

| SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies, strategies, and planning. | – Integration of climate change measures into national policies and planning. |

| SDG 15: Life on Land | Target 15.5: Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity, and protect and prevent the extinction of threatened species. | – Percentage of global GDP highly to moderately dependent on nature.
– Adoption and implementation of measures to reduce the degradation of natural habitats and halt biodiversity loss. |

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Source: lexology.com

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