The Special Presidential Envoy on Climate Action (SPEC) Ajuri Ngelale has said there is a significant paradigm shift in how commercial risk and value are assessed because of the increasing frequency of climate disasters.
Speaking on the sidelines of the Global Energy Transition Congress in Milan, Italy, Ngelale said the insurance industry, particularly in developed markets, is undergoing such major changes. He emphasized that a future, where companies are evaluated based on verifiable climate impact or mitigation measures, is becoming a reality across sectors.
Ngelale, on Monday, joined a Leadership Roundtable of global leaders to co-create solutions for catalyzing private sector investments in renewable energy and carbon capture technology projects. According to him, the discussion focused on creating coordinated pools of de-risking finance to provide political risk guarantees for emerging markets vulnerable to climate change.
He said: “Gradually, we are seeing a paradigm shift concerning how commercial risk and value are evaluated in the wake of an increasing frequency of climate disasters. The insurance industry, especially in developed markets, is just one sector seeing major changes and a future in which companies will be assessed according to verifiable measurement of climate impact or mitigation is evolving into reality across sectors.”
