UK insurers offer guidance to business to become “nature positive”

The Association of British Insurers (ABI) says British businesses need help as they face up to the risks posed by the “shocking” level of nature loss in the UK, which ranks in the bottom 10% for biodiversity on a global basis. Many businesses have not found it easy to assess their reliance on nature, the ABI says, or to recognise its importance to their business strategies. It has therefore published a guide aimed at enabling its members to better understand this issue and the risks and opportunities it poses to them and their customers so that they are truly “nature positive”. The insurer body also calls on the UK government to provide a “strong lead” to place nature at the centre of climate adaptation, which it said would help firms plan their strategies. “Nature, which includes all living matter (biodiversity), together with geology, water, climate and all other inanimate components that make up our planet, is in serious decline,” says the ABI. “For example, there has been a 70% drop in global wildlife populations since 1970; in the UK, a quarter of mammals are at risk of extinction, with 84% of rivers in poor ecological health. The UK ranks in the bottom 10% of countries for biodiversity,” it adds. Drivers for this worrying loss include climate change, changes in land use, pollution and invasive species, such as Japanese knotweed, says the insurer association. The ABI’s Guide to Action on Nature sets out the “compelling” case for action by the industry, including: Nature loss exposes the homes and businesses insured by ABI members across the UK to a wide range of risks, which in turn will impact markets and financial performance; Some studies have estimated that half of global GDP – $44trn – is highly to moderately dependent on nature; Impact on people’s health, with a clear link between physical and mental health and healthy ecosystems that the ABI says impacts on the business models of long-term savings providers, life and health insurers; Consumer pressure and reputation risk to firms not seen to be addressing nature loss. The ABI says 94% of residents polled by the Local Government Association in 2021 wanted more local biodiversity; and Net zero cannot be achieved with innovation and new technologies alone. Nature absorbs carbon from the atmosphere and strengthens resilience. Carbon credits and offsets must incorporate nature. The association says its guide will help firms begin to assess the risks and opportunities to develop a strategy for action. This will include: Identifying external organisations, tools and best practice examples for expertise and guidance; Developing a heat map for an initial estimate of possible impacts and identifying focus areas; Learning from best practice of ‘early movers’ in the sector; and Setting up internal working groups within firms, leading the agreement of guiding principles, including governance and accountability. The ABI says it will support its members, through collaboration and sharing best practice, consumer advice on ‘nature positive’ behaviours, and how the sector’s fraud-tackling expertise can help address environmental crime, like illegal deforestation. “Nature loss is one of the most crucial issues facing our planet. It’s shocking decline not only threatens life but will harm businesses and prevent economic growth,” says Hannah Gurga, the ABI’s director general. “Yet many businesses have not found it easy to assess their reliance on nature, or to recognise its importance to their business strategies. Our guide will enable our members to better understand this issue, and the risks and opportunities it poses to them and their customers, so that they are truly ‘nature positive’,” she added. At the association’s climate change summit taking place today in London, the ABI will review progress on its Climate Change Roadmap, at the halfway point between launching this work in 2021 and the deadline for the first set of milestones in 2025. The ABI’s annual update on the Roadmap includes recent activity from its members, including progress, with 84% already having set targets and developing transition plans, in advance of this becoming mandatory. “We are confident that the majority of our members remain on track to meet the 2025 milestones, but we also recognise that this momentum must not halt if we are to do so,” the association says.

UK insurers offer guidance to business to become “nature positive”

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