Five New Members Join ILS ESG Transparency Initiative
The ILS ESG Transparency Initiative focuses on enhancing environmental, social and governance (ESG) data transparency and disclosure in the insurance-linked securities (ILS) market. The initiaite stems from what was formed a year ago as the "Zurich ILS Working Group" by founding members Credit Suisse Insurance-Linked Strategies, LGT ILS Partners, Plenum Investments, Schroders Capital ILS, Solidum Partners and Twelve Capital. Now joining the initiaitve are AXA Investment Managers, Leadenhall Capital Partners, SCOR Investment Partners, Securis Investment Partners and Tangency Capital.
A recent report from Preqin found that private markets’ ESG investments increased sharply from $29bn in 2020 to $92bn in 2022, but slowed in early 2023, mirroring wider trends in alternative investments. While the ILS ESG Tranparency Initiative's international expansion reflects sustained ESG investment demand and could help attract capital for collateralized reinsurance transations, it will need to quickly build further buy-in and consensus amidst an increasingly complex - and politicized - ESG regulatory and disclosure landscape across countries, regions and investors / asset classes.
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