NYDFS Study Finds Insurers' Assets Are "Meaningfully Exposed" To Climate Risks

In a report commissioned by the New York Department of Financial Services ("NYDFS") titled: "An Analysis of New York Domestic Insurers' Exposure to Transition Risks and Opportunities from Climate Change," independent analysts found that New York domestic insurers' portfolio investments had "meaningful exposure" to carbon-intensive sectors. The analysis was undertaken following NYDFS' March 25, 2021 Proposed Guidance for New York Domestic Insurers on Managing the Financial Risks from Climate Change.

Additionally, the analysts concluded that:

• the five-year forward-looking capital plans of most insurers in?carbon-intensive sectors do not align with the Paris Agreementmodel, except for those in natural gas production, natural gas-fired power generation and electric vehicle production;