3 ways to make climate central to business

The author argues that businesses, particularly insurers and investors, must mainstream climate considerations to avoid asset write-downs, protect vulnerable populations through expanded insurance services, and provide long-term capital for low-carbon infrastructure.

• Companies relying on proven fossil fuel reserves face significant financial risks, specifically substantial asset write-downs, if climate policies are tightened to limit global warming to 2°C. For investors, this 'carbon risk' is considered as material as liquidity or credit risks and should be integrated into mainstream portfolio analysis.
• Insurance companies can support climate adaptation by incentivizing preventive measures and extending coverage to vulnerable populations. G7 leaders committed in June 2015 to provide insurance services to 400 million people in developing countries most susceptible to climate impacts by 2020, a goal requiring public-private collaboration and local government data.
• Approximately USD 90 trillion in global investment is required over 15 years for energy, city, and agriculture infrastructure. Insurers are positioned as natural long-term investors for these low-carbon assets because they hold capital for extended periods, unlike banks that rely on short-term funding.
• Allianz SE intends to at least double its current investments in renewables, which stand at EUR 2.5 billion, in the medium-term. The author calls on governments to ensure regulatory stability to facilitate the necessary scale of low-carbon investment.

APA

Bäte, O. (2015). 3 ways to make climate central to business. World Economic Forum. https://www.weforum.org/stories/climate-action/3-ways-to-make-climate-central-to-business/

Chicago

Bäte, Oliver. 3 ways to make climate central to business. World Economic Forum, 2015. https://www.weforum.org/stories/climate-action/3-ways-to-make-climate-central-to-business/.

Wikipedia

{{cite press release |last1=Bäte |first1=Oliver |title=3 ways to make climate central to business |publisher=World Economic Forum |date=23 December 2015 |url=https://www.weforum.org/stories/climate-action/3-ways-to-make-climate-central-to-business/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{bte2015ways, author = {Bäte, Oliver}, title = {{3 ways to make climate central to business}}, publisher = {World Economic Forum}, year = {2015}, month = dec, url = {https://www.weforum.org/stories/climate-action/3-ways-to-make-climate-central-to-business/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }