Mexico’s Joint Programme on “Sustainable Financing” aims to create better risk and resource management for sustainable development while improving the financial system’s resilience to the most pressing environmental threats.
Under this context, in collaboration with the Research Programme of Climate Change from the National Autonomous University of Mexico (UNAM) and the Latin American Climate Asset Disclosure Initiative (LACADI), the Joint Programme organized a workshop on “Scenarios and Climate Change Risk Management for Financial Institutions”.
The workshop was specially directed to insurance institutions as they are heavily exposed to sources of climate risk. However, they are also critical, and potential, actors for a low greenhouse-emission economy.
Principles and frameworks of risks and opportunities were thoroughly reviewed with the help of specialists. Impact-related scenarios were examined; among them stands out the International Association of Insurance Supervisors (IAIS) Global Insurance Market Report which concluded that over 35% of the insurance’s investment assets are exposed to climate-related risks.
Insurance Institutions are fundamental for pursuing climate-friendly policies and strong, green financial systems. Mexico is facing an accelerated pace of temperature warming, notably in the last decade, making it of vital importance to develop new and efficient strategies that respond to this context.