Ortec Finance: Insurers need more support on understanding climate investment impact
A global study of investors by Ortec Finance finds nearly one in three expecting climate risk and impact investing will become much more important to their portfolio and investment strategy over the next three years. Meanwhile, one in four investors say understanding of impact is only “average”.
Insurance investment managers and investment managers need more support on understanding the impact of different climate scenarios on their investments, a new study from Ortec Finance, that commissioned independent research company Pureprofile to interview in May 2025 100 senior executives working in insurance asset management or in investment management firms supporting insurers, involving investment managers located in the UK, France, Germany, Switzerland, Hong Kong, Malaysia, Singapore and Norway responsible for $10.48 trillion AUM, shows.
Around one in four respondents admit their organization’s current understanding of climate related impact is only average, while 76% consider their understanding of the impact of different climate scenarios to be good.
The study found that more than 90% of respondents said they expected climate risk and impacting investing to become more important to their organization’s portfolio and investment strategy over the next three years. Nearly a third (29%) believe it will become much more important.
The research shows that nearly two-thirds of respondents allocate 4% of their investment portfolio to sustainable investments, such as green bonds, social bonds and impact investing.
A further fifth report that only 3% of their investment portfolio is dedicated to sustainable investments, while 1 in 6 estimate 5% of their portfolios is dedicated to such investments.