Liberty Specialty Markets has become the first major insurer to align capacity with Willis Towers Watson’s (WTW) Climate Transition Pathway (CTP) solution, which aims to boost insurance capacity for companies with proven green credentials as they transition to net-zero carbon.
CTP, launched earlier this year, is an accreditation framework that provides insurance companies and financial institutions with a consistent way of identifying businesses with robust low-carbon transition plans aligned to the Paris Agreement.
Companies achieving accreditation will have the opportunity to access insurance capacity and capital to support their orderly transition and help them meet their low-carbon commitments.
It is particularly aimed at high-carbon industries that are finding it increasingly difficult to find insurance cover.
Graham Knight, global head of natural resources at WTW, said: “We are delighted that Liberty is supporting the CTP solution. As part of our ongoing commitment to create innovative solutions for a low-carbon economy, we are supporting organisations through an orderly transition to enable them to have continued access to insurance as they transition and benefit from a greater level of certainty around the future availability of risk capacity, helping them deliver a more sustainable future.”
Michael Gosselin, chief underwriting officer of specialty at Liberty Specialty Markets, added: “Climate and environmental challenges continue, and all businesses are having to review their sustainable credentials. We are delighted to be collaborating with Willis Towers Watson on the Climate Transition Pathway, which will provide a best-practice industry standard to help businesses move to a more sustainable future.”
A CTP governance committee has been formed to create industry-specific solutions. The committee includes representation from consultancy Volans, which is responsible for the Bankers for Net Zero Initiative, and the Climate Bonds Initiative, a global investment organisation focused on climate resilience.
The committee’s work will feed into the accreditation framework to measure business commitments to the Paris Agreement’s below 2⁰C temperature rise and science-based targets to reduce global emissions.
More information on CTP can be found at: www.climatetransitionpathways.com