Sustainable Investing for Insurers
NEAM supports UK & European insurers in meeting evolving environmental, social and governance (ESG) expectations through a practical, thoughtful investment approach grounded in the same disciplined, insurance-focused perspective that defines our work.
ESG Integration
Sustainability considerations are embedded into our investment process, incorporating financial and non-financial ESG data to complement our standard qualitative and quantitative research.1 This facilitates a well-rounded research base informed by sustainable investment considerations.
Our Research Analysts regularly review and evaluate ongoing ESG and climate risk factors at both the sector and issuer level. In addition, our investment sector heads and many members of senior management have completed the PRI Academy courses, strengthening internal knowledge and consistency of approach.
1 Where deemed applicable and data for investment sector permits.
Tailored Approach to Sustainable Investing
Consistent with our partnership-like approach, we work with insurers to develop an appropriate responsible investment policy in alignment with their wider corporate sustainability goals and objectives. We recommend a tailored blend of ESG Investment tools for their specific investment strategy and guidelines.
NEAM’s Sustainable Investment Toolkit
Our modular Sustainable Investment Toolkit supports a “values aligned” approach to ESG investing, adaptable to each insurer’s requirements.
Investment Toolkit:
- ESG Risk Reduction
- Negative Screening
- Carbon Intensity Reduction
- GSSS Labelled Bond Allocation2
2 Green, Social, Sustainable, Sustainability-linked Bonds
ESG Reporting & Analytics
NEAM’s suite of reports and analytics help insurers monitor the potential impact of ESG and climate change on their investment portfolios and risk profiles.
Our comprehensive reporting package helps insurers demonstrate whether they are meeting their sustainability requirements, acting as supportive documentation to show whether portfolios are adhering to applicable regulatory, industry oversight or group level requirements.
Global insurance companies are increasingly subject to a range of multiplying corporate disclosure regimes. Our flexible reporting and analytics platform supports the production of clients’ non-financial data relating to their investment portfolio required under most disclosure frameworks (e.g. CSRD, TCFD/ISSB, PCAF, etc.).
Sustainable Investing Reports Include:
- ESG Risk Metrics
- GSS Bond Holdings3
- Carbon Metrics
- Sector Involvement
- Climate Change Risk Stress Testing
3 Green, Social, Sustainable, Sustainability-linked Bonds
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Strategic ESG Governance
NEAM Limited’s Head of Sustainability leads the firm’s Sustainability Steering Group, comprised of senior management members. The group is responsible for high-level, strategic decisions in ESG implementation across the organisation and NEAM’s Sustainable Investment Policy. It also reviews sustainable investment market trends and monitors regulatory developments in an effort to remain current on issues that impact ESG markets.
Supporting Clients’ Governance Obligations
NEAM works with insurers to support their governance frameworks by:
- Supplying clear, repeatable sustainable investment reporting
- Helping to define ESG risk appetite and investment guideline development
- Contributing to Responsible Investment Policies
- Maintaining awareness of regulators’ ESG requirements
NEAM’s Commitment to Sustainable Investing
- Principles for Responsible Investment (PRI Certification)
- United Nations Climate Change Certification4
NEAM acknowledges the importance of climate change, and we support the goal of the UNFCCC 2015 Paris Agreement of limiting the increase of global temperature to below 2 degrees Celsius (preferably 1.5 degrees Celsius) above pre-industrial levels. We commit to supporting those of our insurance clients who aim to play a role in achieving this goal.
4 NEAM acknowledges the importance of climate change, and we support the goal of the UNFCCC 2015 Paris Agreement of limiting the increase of global temperature to below 2 degrees Celsius (preferably 1.5 degrees Celsius) above pre-industrial levels. We commit to supporting those of our insurance clients who aim to play a role in achieving this goal.
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Intro to what this looks like in practice
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Insights on Sustainable Investing
NEAM's team publishes on ESG investment topics that matter to insurance executives.
Is the Climate Changing on Climate Change Regulation?
“Nuking” Our Way to Lower Emissions
Supporting Your Sustainable Investment Priorities
If you would like to discuss how NEAM can support your approach to sustainable investing, we welcome the opportunity to connect.
