“We’ve analysed losses from climate risk and the value of climate resilience,” said Randall E. Hodge, executive vice president for staff insurance operations, at FM Global. “These new climate resilience products provide our clients with informed guidance from which they can prioritise their climate-risk-mitigation investments, ultimately leading to a more resilient tomorrow.”
The FM Global Climate Risk Report provides clients with a score based on actions taken to address climate risk and exposure, with the goal of helping business leaders prioritise critical investments in climate resilience. It considers actional risks or those that can be mitigated by actions like installing flood barriers and inherent risks, as well as risks like extreme weather exposure.
The report uses property-risk data points collected by FM Global from over 60,000 engineering visits to client sites each year and is underpinned by artificial intelligence machine learning and predictive analytics. It also complements FM Global’s recently announced Resilience Credit, which is a 5% premium offset to FM Global policyholders. This allows companies to invest the credit in priorities identified in their report, providing the potential to reduce total loss expectancies from exposures by over US$120 billion.
Meanwhile, the Climate Reporting Aid was designed to help clients disclose acute and chronic climate-related financial risks to investors and the public. It follows widely used frameworks like the international Task Force on Climate-related Financial Disclosures (TCFD), which consists of representatives from across the G20.
“We are learning from our clients, and in particular from their chief sustainability officers, that this data is very valuable in completing these financial disclosures, and that data can be difficult and costly to obtain otherwise,” said Hodge.
Climate risk disclosure is an important part of reporting environmental, social and governance (ESG) factors. Specialised data from the Climate Risk Report can support ESG reporting on climate-related opportunities and actions
Both the Climate Risk Report and Climate Reporting Aid will also be available to policyholders of AFM, FM Global’s middle-market business unit.
