Hedging and Principles for Sustainable Insurance: Difference between pages

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''Environmental social and governance (ESG) - insurance - United Nations Environment Programme Finance Initiative (UNEP FI).''


Traditionally hedging refers to the process whereby a firm uses financial instruments (such as forward contracts, futures contracts or options) or other techniques to reduce the impact of fluctuations in such factors as the market price of credit, foreign exchange rates, or commodity prices on its profits or corporate value.
(PSI).


Other techniques may operational or structural responses, for example re-locating manufacturing or assembly to align the currencies of costs with revenues.


Following such successful structuring, the organisation may then be said to be 'naturally' hedged.
The UNEP FI defines sustainable insurance as:


:"... a strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities associated with environmental, social and governance issues."


2.


The application of hedging  techniques has been extended to the management of many other risks including, for example, inflation and longevity risk arising in pension funds.
:Signatories to the Principles for Sustainable Insurance commit themselves accordingly to:


#Embed in their decision-making, environmental, social and governance issues relevant to their insurance business.
#Work together with clients and business partners to raise awareness of environmental, social and governance issues, manage related risks and develop solutions.
#Work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.
#Demonstrate accountability and transparency in regularly disclosing publicly their progress in implementing these Principles.


== See also ==
::''Source - United Nations Environment Programme Finance Initiative (UNEP FI)''
* [[Arbitrage]]
* [[Authorisation]]
* [[Covering]]
* [[Deal contingent forward]]
* [[Delta hedging]]
* [[Effective]]
* [[Foreign exchange forward contract]]
* [[Futures]]
* [[Guide to risk management]]
* [[Hedge accounting]]
* [[Hedge fund]]
* [[Interest rate guarantee]]
* [[Macro hedging]]
* [[Option]]
* [[Outturn]]
* [[Overhedging]]
* [[Pre-hedging]]
* [[Pre-settlement risk]]
* [[Reduce]]
* [[Risk response]]
* [[Speculation]]
* [[Transfer]]
* [[Uncovered]]
* [[Underhedging]]
* [[Warehousing]]




===Treasurer articles===
==See also==
*[[Environmental concerns]]
*[[Equator Principles]]
*[[European Bank for Reconstruction and Development]]
*[[ESG investment]]
*[[Insurance]]
* [[Organisation for Economic Co-operation and Development]]  (OECD)
*[[Paris Agreement]]
*[[Principles for Responsible Banking]]
*[[Principles for Responsible Investment]]
*[[Risk management]]
*[[Social concerns]]
*[[Sustainable Development Goals]]
*[[United Nations Environment Programme]]
*[[United Nations Environment Programme Finance Initiative]]


*[[Media:2015_05_May_-_The_devil_is_in_the_detail.pdf| The devil is in the detail, 2015]]


*[http://www.treasurers.org/node/8925 Harness your hedges, April 2013]
==External link==
 
[https://www.unepfi.org/psi/the-principles/ Principles for Sustainable Insurance - UNEP FI webpage]
*[http://www.treasurers.org/node/689 Interest rate hedging: demand the proof, 2008]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Trade_finance]]

Revision as of 12:56, 25 June 2022

Environmental social and governance (ESG) - insurance - United Nations Environment Programme Finance Initiative (UNEP FI).

(PSI).


The UNEP FI defines sustainable insurance as:

"... a strategic approach where all activities in the insurance value chain, including interactions with stakeholders, are done in a responsible and forward-looking way by identifying, assessing, managing and monitoring risks and opportunities associated with environmental, social and governance issues."


Signatories to the Principles for Sustainable Insurance commit themselves accordingly to:
  1. Embed in their decision-making, environmental, social and governance issues relevant to their insurance business.
  2. Work together with clients and business partners to raise awareness of environmental, social and governance issues, manage related risks and develop solutions.
  3. Work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.
  4. Demonstrate accountability and transparency in regularly disclosing publicly their progress in implementing these Principles.
Source - United Nations Environment Programme Finance Initiative (UNEP FI)


See also


External link

Principles for Sustainable Insurance - UNEP FI webpage

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