Gallagher Specialty has announced the launch of its new carbon insurance solutions service, which will allow clients to mitigate the possible risks that come with de-carbonisation initiatives.
With its team of climate risk professionals, Gallagher Specialty will look to support clients by providing advice about how they can manage the emerging risks that come with decarbonising their activities and reducing their carbon footprint. The insurer will tailor these insurance solutions based on individual exposures.
Heading up its climate risk team is James Bosley, Gallagher Specialty’s head of climate strategy, carbon insurance & parametric solutions.
“The size and scale of the carbon market is expected to increase significantly over the coming years, and is being driven by a growing desire by firms to address their role in impacting the environment, and increasingly widespread reporting requirements,” said Bosley.
He added that financial and listed firms in the UK have been required to report their strategies geared towards transitioning to net zero last year. The EU’s Corporate Sustainability Reporting is also set to require firms to disclose their transition plans in the coming year.
“These are just two examples with many more requirements being implemented elsewhere globally - meaning that firms need to be transparent about how they will reach climate targets, and the purchase of carbon credits will play a crucial role in many businesses’ strategies,” said Bosley.
He further explained that carbon insurance allowed firms to reduce the risk of carbon credit transaction, which includes protecting against non-delivery risks, underlying asset damage, and carbon capture reversal or credit invalidation.
“Our team can advise clients on what insurance cover is available and by using insurance, clients will have an extra layer of security when purchasing or selling carbon credits,” said Bosley.
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