Willis Towers Watson has announced that Arch Insurance International has committed to align capacity with, and Fidelis Insurance has endorsed, Climate Transition Pathways (CTP), an accreditation framework that provides insurance companies and financial institutions with a consistent approach to identifying businesses with low-carbon transition plans. The announcement comes on the heels of news that Liberty Specialty Markets and SCOR had become the first group of insurers to support CTP.
CTP is designed to help organizations wishing to make the low-carbon transition by achieving accreditation. The CTP framework is consistent with the goals of the Paris Agreement, the Science Based Target initiative and the EU Sustainable finance taxonomy, Willis Towers Watson said. The announcement that Arch and Fidelis are supporting CTP demonstrates wider industry support for the model, ensuring that companies will have the opportunity to access insurance capacity to support their transition and help them meet their low-carbon commitments.
“Following COP26, today’s announcement demonstrates the wider industry support which is building for Climate Transition Pathways,” said Graham Knight, global head of natural resources at Willis Towers Watson. “CTP was designed to help companies wishing to transition to a low-carbon economy, and we are absolutely delighted to see more insurers supporting the framework. We are urging businesses to start planning now for future changes to access capacity and capital to ensure your organization can have continued access to insurance for companies committed to transition. By supporting our clients in this way, we are also helping to create a sustainable future for the energy sector.”
“We are delighted to announce our commitment to the Climate Transition Pathways,” said High Sturgess, CEO of Arch Insurance International. “The accreditation framework offers companies a clearly defined, credible mechanism, aligned with the Paris Agreement, to support the transition to a low-carbon environment. We are proud to play our part in supporting this important industry initiative alongside Willis Towers Watson and others.”
“We are committed to supporting a just, material and measurable transition to a low-carbon economy,” said Richard Coulson, CEO insurance and UK chief underwriting officer at Fidelis. “The Climate Transition Pathways accreditation will allow insurers to access reliable data on companies’ plans and progress towards their stated decarbonization objectives. This will give us the opportunity to support those who are best in class, as well as those who are genuinely working in earnest to complete and execute a plan on how to drastically reduce their carbon footprint within a reasonable time frame. We welcome Willis Towers Watson’s efforts to develop an industry-wide initiative and are excited to join our peers supporting it.”