Calvert, one of the nation’s largest families of socially responsible mutual funds, has withdrawn climate change shareholder resolutions filed with two leading insurance companies: The Hartford Financial Services Group, Inc. and Prudential Financial Inc. The two companies agreed to improve their public reporting and disclosure regarding the potential financial risks they face from climate change and strategies for mitigating those risks.
“As a responsible corporate citizen and as a major underwriter of risk, it’s appropriate for The Hartford to address the issue of climate change rigorously and comprehensively,” said Neal Wolin, Executive Vice President and General Counsel of The Hartford.
The Hartford and Prudential Financial responded positively to shareholder resolutions filed by Calvert. Both insurers agreed to respond to a climate risk disclosure questionnaire sent to companies each year by the Carbon Disclosure Project. They also committed to disclose their assessment of the business impacts of climate change.
“Prudential Financial recognizes the importance of addressing the business impact of climate change,” said Kathleen Gibson, Vice-President and Corporate Governance Officer at Prudential. “Our company is not in the property and casualty line of insurance, nor does the company have high greenhouse gas emissions. Nevertheless, we will be including on our website a section that addresses Prudential’s policies, programs and performance on the environment generally and inform shareholders that we are and will continue to analyze the risks that environmental issues such as climate change may have on our business.”
A growing number of investors believe that climate change will have material impacts on most companies, including insurers. Climate change has the potential to affect virtually all segments of the insurance business, including coverage of damage to property, crops, business interruptions, life and health. The industry could also be affected through the large investment portfolios managed by insurance companies.
“Insurance is the world’s largest industry with core competencies in risk management and loss prevention, so it is crucial that insurance companies disclose their exposure to climate change impact and also explore the significant business opportunities becoming available” said Ms. Baljit Wadhwa, Social Research Analyst at Calvert.
“Calvert believes that early actions to identify the risks and opportunities that climate change presents can pay off. Forward-looking companies are developing climate change strategies and in turn, integrating them with overall business strategies and management processes. Calvert believes that by identifying leaders such as Prudential Financial and The Hartford early, our portfolios can benefit as well.”
The Hartford and Prudential Financial’s commitment to climate risk disclosure is part of a growing movement by US companies to recognize and disclose the risks and opportunities associated with climate change.
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