Insight
Can You Protect the Environment and Your Yield?
Reducing carbon intensity doesn’t mean sacrificing yields. Issue selection in high-emitting sectors can help insurers stay on track with their liabilities.
Authors
-
Ed Martin
12/13/2023
9 min read
Topic
Systematic Research
Key takeaways
- As disclosure requirements increase, insurance company investors should understand their portfolio’s carbon profile and the key drivers of carbon intensity.
- For the typical property and casualty insurance company, about 20% of the portfolio drives over 80% of the total carbon intensity.
- Our analysis indicates carbon intensity can be reduced without harming portfolio yield.