Hi These examples are listed under the transition risk section, please clarify the meaning/ intention of these examples: - "transition to low-carbon economy reducing demand for life insurance products...": Why would the demand for LI products reduce? - "adaptation of the operational model": Does this refer to changes in the LIC operational activity to adopt greener and more sustainable solutions to attract investors, staff, customers? Many thanks
If you read to the end of that bullet point, the example it gives is a company selling occupational pension plans to a customer base that is heavily exposed to conventional carbon-intensive industries. If such industries contract, so will that insurer's customer base.
Yes - it's about making sure that its own operations are adapting to (and not contributing to) climate change, eg using more sustainable energy sources to heat its office buildings.
