- US Department of the Treasury and the Office of the US Trade Representative announce their intent to sign the Bilateral Agreement between the US and the UK on Prudential Measures Regarding Insurance and Reinsurance (US-UK Covered Agreement)
- Insurance Europe raises serious concerns in its response to a consultation by the European Commission on its draft proposals for the 2018 review of the Solvency II Delegated Regulation
- Insurance Europe seriously concerned by the quick-fix approach taken by the European Supervisory Authorities (ESAs) in their proposals for changes to the Key Information Document (KID) for Packaged Retail Investment and Insurance Products (PRIIPs)
- Commercial insurance prices in the US increased by over 2% in the third quarter of 2018 according to Willis Towers Watson CLIPS survey
- SME attitude to cyber security worrying says Aon after commissioning poll
- Beazley launches cyber and breach response portal that provides exclusive access to a wealth of risk management information and risk mitigation tools to its Beazley Breach Response (BBR) policyholders in the UK, France, Spain and Italy
- Royal London CEO and Chair to stand down expired
- Co-operators selects Guidewire Predictive Analytics for Claims to embed predictive insights into Guidewire ClaimCenter expired
- Willis Towers Watson launches latest version of its innovative Radar software expired
- Coverys to join DTW’s panel of capacity providers as one of its largest backers expired
- Peak Re launches Asia’s first sidecar transaction via a new Bermuda-domiciled special purpose insurer, Lion Rock Re expired
- Ed appoints CEO-designate and is setting up a new broking platform in Bermuda expired
5th December 2018
Clyde & Co publishes report exploring the legal, commercial and liability risks that climate change creates for businesses and their boards
Clyde & Co has published a report exploring the legal, commercial and liability risks that climate change creates for businesses and their boards.
"Climate change: a burning issue for businesses and boardrooms" looks at what is driving the heightened risk environment and how most companies are vulnerable to climate-related risks in some way, even if they are not in the energy sector or other carbon-intensive parts of the world economy. The report examines the risks faced by businesses and their boards in three main areas.
-Physical risks are those that might impact businesses of all kinds as climate change-related events lead to physical damage to business property, assets or supply chains.
-Transition risks are those that arise as the worldwide shift to a low or zero carbon economy impacts the finances and valuations of organisations and asset portfolios.
-Liability risks are faced by those alleged to be responsible for (for example) contributing to climate change, or failing to avert, minimise or report on physical or transition risks.
Nigel Brook, partner, Clyde & Co, comments "Climate change is one of the defining issues of our time, with its effects becoming more apparent by the day. Boards have a responsibility to shareholders and other stakeholders to understand, measure, mitigate and report on the risks that climate change brings, which makes it a critical boardroom issue, not only to the corporations themselves, but to their directors, who are at risk of being held to account."
In its analysis of the liability risks faced, the report looks at current trends in climate change litigation which include an increase in product liability claims brought by activists, states and cities against oil majors which are passing through the courts, especially, but not exclusively, in the US.
Neil Beresford, partner, Clyde & Co, added "Climate change litigation is not new, but we are now seeing new types of claims emerging brought by a wider range of claimants against businesses."
The report also looks at how the risks associated with climate change have for a long time impacted insurers and will continue to do so as weather-related perils become more severe and more common. It also considers the crucial part that insurance has to play in mitigating the impacts of climate change and helping build resilience to it.
James Cooper, chair of the Insurance Global Practice Group at Clyde & Co, says "Insurers are no strangers to climate change issues and have long played a key role in raising awareness of the physical risks that it poses. They have also advanced their thinking on the impact that the transition to a low carbon economy will have on their balance sheets. But there are still significant opportunities for insurers to help businesses, communities and individuals build resilience to climate change through traditional and novel insurance models."
"Climate change: a burning issue for businesses and boardrooms" is the first of three reports being launched in the coming months which delve further into the risks faced by businesses and their boards.
Clyde & Co Trends(26 articles)