Steps taken by insurance companies and pension funds Insurers and pension funds did take important steps to integrate sustainability in business models and risk management practices. Good progress has been made in Risk management. Many institutions are embedding climate risk into their risk management. And climate change is also discussed and strategized more often in the boardroom.
What’s more, we see institutions conduct scenario analyses. This helps them better understand their risks on the liability and asset-side. This is a big leap in the right direction. However, forward-looking risk management methods still need to be refined. This includes improved scenario analyses: to better understand the effects of climaterelated risks on the institution. We have seen insurers conducting these.