英杰華集團2019年氣候相關財務披露 - 英杰華集團（英文版）（28頁）.pdf

1、 1 Avivas Climate-Related Financial Disclosure 2019 Credit: Unsplash AV403358-RRDLB4365-0220.indd 123/03/2020 13:27 2 Avivas Climate-Related Financial Disclosure 2019 Climate change and extreme weather trends have been recognised as key risks facing the insurance, savings and investment industry and

2、 many regard the climate crisis as the greatest risk currently facing humanity. Aviva believes that unmitigated climate- related risks present a systemic threat to societal and financial stability over the coming decades. As Maurice Tulloch our Group Chief Executive Officer has said “The planet does

3、 not have time for excuses. Investors have a central role to play in moving the world to a low carbon future . The cost of doing nothing is far greater than any costs incurred by taking action.” Our responsibility as leaders is to ensure we understand the fast-changing world around us and we are tak

4、ing actions today to identify, measure, manage, monitor and report climate-related risks and opportunities. We are eager to help build a long-term sustainable future for our customers and investors and we believe that our actions will contribute to climate risk mitigation. Aviva is an asset owner wi

5、th assets under management to the value of 510bn, an insurer with IFRS gross written premiums of 31.2bn, and Aviva Investors has assets under management of 346bn. Aviva is committed to supporting a low carbon economy that will improve the resilience of our economy, society and the financial system i

6、n line with the 2015 Paris Agreement target on climate change. We have already invested 6bn in green assets since 2015 (3.8bn in low carbon infrastructure, 2.2bn in green and sustainable bonds). We welcome and fully endorse the recommendations of the Financial Stability Boards Taskforce on Climate-r

7、elated Financial Disclosures (TCFD) and the increased regulatory focus on climate change from the Prudential Regulation Authority, Financial Conduct Authority, European Insurance and Occupational Pensions Authority and the Network for Greening the Financial System. Aviva is working collaboratively w

8、ith the United Nations Environment Programme Finance Initiative (UNEP FI), industry associations, sector peers, academics, professional bodies, external consultancies, regulators and international agencies, including the Net Zero Asset Owner Alliance, to build robust, comprehensive and effective too

9、ls and approaches. These will enable the potential business impacts of climate-related risks and opportunities to be assessed and promote more informed understanding of climate-related risks and opportunities by investors, lenders, insurance underwriters and others. Foreword Matt Saker, Group Chief

10、Actuary Kirsty Cooper, Group General Counsel and Company Secretary AV403358-RRDLB4365-0220.indd 223/03/2020 13:27 3 Background Aviva provides 33 million customers around the world with insurance, savings and investment products. For our customers and our business, addressing climate change and suppo

11、rting the transition to a low carbon future represents the largest combined health, life, liability and general insurance contract that the world could sign-up to. The risks and uncertainty resulting from us not doing so are immense. Aviva has reported on climate change in our Annual Report and Acco

12、unts since 2004. This disclosure sets out how Aviva incorporates climate-related risks and opportunities into governance, strategy, risk management, metrics and targets (in line with the recommendations of the TCFD, published in June 2017) and how we are responding to new regulatory requirements. It

13、 builds on the summary Climate-related Financial Disclosure in the 2019 Annual Report and Accounts. These pages and our climate dashboard are available at The ways in which the insurance sector could be affected by the climate crisis1 are diverse. This disclosure focuses on the transition, physical

14、and litigation risk factors and related opportunities. These were described in the Prudential Regulation Authority (PRA) 2015 report “The impact of climate change on the UK insurance sector” and are defined by Aviva as follows: Transition risks and opportunities relate to the business impact resulti

15、ng from the transition to a low carbon economy. This may entail extensive policy, legal, technology, and market changes designed to mitigate climate change. As a result, depending on the nature, speed and focus of these changes, transition risks may pose varying levels of financial and reputational

16、risk to organisations. Physical risks and opportunities relate to the business impact arising from acute, abrupt, disruptive impacts such as more frequent and intensive storms, extreme heat and cold, floods, droughts and fires, as well as chronic gradual impacts such as higher than average temperatu

17、res, rises in sea level and the spread of vector-borne diseases. The risk includes the effects directly resulting from events, such as damage to property, and those that may arise indirectly through subsequent events, such as disruption of global supply chains or resource scarcity. Litigation risks

18、relate to the business impact that could arise from parties who have suffered loss and damage from climate change and seek to recover losses from others who they believe may have been responsible. Where such claims are successful, those parties against whom the claims are made may seek to pass on so

19、me or all of the cost to insurance firms under third-party contracts. The materiality and horizons over which climate-related risks and opportunities affect our business depend on the specific insurance products, geographies and investments being considered. For example, our general insurance busine

20、ss considers risks in the underwriting and pricing processes and setting the reinsurance strategy based on a relatively short time horizon (one to three years). Aviva recognises that the increased severity and frequency of weather-related losses have the potential to negatively affect our profitabil

21、ity. Consequently, large catastrophic losses are already explicitly considered in our economic capital modelling to ensure resilience to such catastrophic scenarios. 1 Climate crisis is a term describing global warming and climate change, and their consequences. The term has been used to describe th

22、e threat of global warming to the planet, and to urge aggressive climate change mitigation. AIQ: The climate crisis, examines challenges posed by climate change and explores potential solutions. In contrast, when developing our new product strategy and updating Avivas overall business plan, the impa

23、ct of these risks and opportunities should be considered over a medium time horizon (three to five years). With respect to life and pensions, in areas such as setting premium rates and reserves for annuities in payment as well as our investment strategy to back those liabilities, the impact of these

24、 risks and opportunities needs to be considered over a much longer time horizon (five years plus). In general, transition risk is likely to materialise more rapidly than the most extreme physical impacts from climate change. Aviva can mitigate the transition risk and grasp opportunities by investing

25、 in the transition to a low carbon economy. Sectors or subsectors particularly exposed to transition risk are closely monitored and the risk to Avivas individual company level investments is analysed. Conversely, the most extreme physical risks present a fundamental threat to the insurance business

26、model. The physical effects of climate change will result in more risks and perils becoming either uninsurable or unaffordable. It is important to note, however, that many commonly used climate scenarios assume a gradualist path, in which temperatures slowly rise and climate policy is ramped up with

27、 a fairly high degree of global coordination. This does not consider the transition risk in a more chaotic policy environment, where there is lack of global coordination and policy action is taken too late and is too sudden. See for example the European Systemic Risk Board Report - Too late, too sud

28、den. We continue to develop our tools and approaches as well as metrics to assess the potential business impacts of climate-related risks and opportunities over a range of different time horizons. In particular, we are enhancing our Climate Value-at-Risk (Climate VaR) measure. This measure enables t

29、he potential business impacts of climate-related risks and opportunities to be assessed taking into consideration different scenarios and assumptions regarding policies, technologies, demand and various other macroeconomic factors as well as extreme weather. This measure looks at the evolution of cl

30、imate-related risks and opportunities over the next 15 years, but with the ability to consider shorter time periods (three to five years) where appropriate. Aviva was awarded the Climate Risk Initiative of the Year 2020 by InsuranceERM, because the “Climate value-at-risk (VaR) initiative shows the p

31、ractical benefits that can be achieved when insurers focus resources, time and expertise on climate risk management, as well as collaborating with other knowledge partners”. AV403358-RRDLB4365-0220.indd 323/03/2020 13:27 4 Avivas Climate-Related Financial Disclosure 2019 Aviva invested 717.3m in low

32、 carbon infrastructure in 2019, this included 27m in wind turbine projects. Credit: Unsplash AV403358-RRDLB4365-0220.indd 423/03/2020 13:27 5 Governance Aviva has built a strong system of governance, with effective and robust controls. The system of governance is proportionate to the nature, scale a

33、nd complexity of the operations across Aviva businesses. It allows the Board, relevant management committees and senior management to integrate climate-related risks and opportunities into decision-making and business processes. In 2019, we updated the Senior Management Functions Statements of Respo

34、nsibilities and developed an implementation plan, in line with the PRAs Supervisory Statement 3/19 “Enhancing banks and insurers approaches to managing the financial risks from climate change”. As a result, the UK regulated entities Chief Risk Officers (CROs) are responsible for: Ensuring that clima

35、te-related risks and opportunities are identified, monitored and managed through Avivas risk management framework and in-line with our risk appetite. Advising the Board on our exposure to the financial risks arising from climate change (including how these risks impact our strategy and business mode

36、l) and assisting the Board with addressing and overseeing these risks. Assisting the Board with developing and maintaining an appropriate approach to disclosure and regulatory reporting of the financial risks from climate change. In addition, the Group CRO is responsible for: Overseeing at a Group l

37、evel Avivas approach to the embedding of climate-related risks and opportunities into governance, strategy, risk management and reporting processes. Scrutinising (and where necessary, challenging) Avivas regulated businesses in relation to their management of climate-related risks and opportunities.

38、 Advising the Plc Board in relation to the above and related corporate and regulatory reporting requirements. To support the CROs in meeting regulatory expectations, we have initiated a groupwide climate-related risks and opportunities project. The aim of this project is to integrate the assessment

39、of these risks and opportunities into our strategy, decision-making, risk management and reporting frameworks. In order to support this project, an inter-disciplinary team has been created with representation from across the business. The Group CRO is the executive sponsor of the project supported b

40、y a Steering Group. The project is managed day-to-day by a Working Group. An Expert Panel, with internal and external membership, is responsible for reviewing and challenging key expert judgements and outputs from the project. We have updated the relevant Group and UK Board Committees Terms of Refer

41、ence to ensure these committees are accountable with respect to potential shifts in the business landscape that may result from climate change. We have also updated our risk policies and the business planning instructions to ensure the assessment of climate-related risks and opportunities is integra

42、ted into governance, strategy, decision- making, risk management and reporting. Avivas Group Chief Actuary (on behalf of the Group CRO) and the Group General Counsel and Company Secretary are the executive sponsors overseeing this disclosure. Other Group executives and the management teams within ou

43、r businesses are responsible for managing specific areas of the business which may affect or be affected by climate change. The Board Risk Committee and the Board Customer Conduct and Reputation Committee (formerly the Board Governance Committee) oversee our management of climate-related risks and o

44、pportunities. In 2019 we completed a first of its kind in the UK solar carport installation at our office in Norwich which with the right weather conditions removes our reliance on the national grids electricity and feeds surplus electricity back into the grid. Credit: Aviva AV403358-RRDLB4365-0220.

45、indd 523/03/2020 13:27 6 Avivas Climate-Related Financial Disclosure 2019 Figure 1: Avivas climate governance structure. Source: Aviva. The Board Risk Committee met six times in 2019 to review, manage and monitor all aspects of risk management and climate-related risks and opportunities were noted i

46、n four of those meetings. Climate change is classified as one of the most material long-term risks to our business model and is assessed for its proximity and significance to Aviva as part of our emerging risk processes. The Board Governance Committee met four times in 2019 to oversee how Aviva meet

47、s its corporate and societal obligations. This includes setting the guidance, direction and policies for Avivas customer and corporate responsibility agenda, advising the Board and management on the assessment of the Groups exposure to climate- related risks and recommending to the Board management

48、actions to mitigate these risks and grasp opportunities. This committee also approves the Groups Environment and Climate Change Business Standard and ensures alignment with the Groups strategy. This committee has now been replaced by the Board Customer Conduct and Reputation Committee. The Board Ris

49、k Committee and the Board Customer Conduct and Reputation Committee reviewed the summary Climate-related Financial Disclosure in the 2019 Annual Report and Accounts before its approval by the Audit Committee. The Group Chief Actuary and the Group General Counsel and Company Secretary have reviewed and signed-off the content of this report. Our businesses are also taking actions to respond to local regulations (for example Article 173 in France and the PRAs climate change Insurance Stress Test in the UK). In 2019 papers considering the impact of climate