Willis Towers Watson has introduced a new accreditation framework that provides insurers with a consistent way of identifying and rewarding organisations which demonstrate robust carbon transition plans.

Called Climate Transition Pathways, the framework supports the role of insurers as “stewards” in the transition to a low-carbon economy, WTW says.

Organisations moving to a net-zero carbon environment will achieve accreditation and have access to insurance capacity and capital.

“To ensure organisations in high-carbon industries transition effectively, in line with what the science indicates is needed, they require robust transition plans and the ability to execute successfully against these,” Head of the Climate and Resilience Hub at WTW Rowan Douglas says.

Using the WTW Pathways framework will support organisations through an orderly transition and ensure they “can continue to access insurance and benefit from a greater level of certainty around the future availability of risk capacity,” Mr Douglas said.

Mark Carney, UN Special Envoy for Climate Action and Finance, says Willis Towers Watson’s work is a valuable contribution to ensuring every professional financial decision takes climate change into account.

“As insurers take steps to align their underwriting activities with the transition, companies will increasingly need to display that they have the right plans or risk losing access to insurance,” Mr Carney, who is also the Prime Minister’s Finance Adviser for COP26, said.

Every company, bank, insurer and investor will have to adjust their business models, develop credible plans for the transition and implement them, he said.

More information on Climate Transition Pathways can be found here.