The Chartered Insurance Institute has published a Green Finance Companion Guide that supports and extends its Code of Ethics.
The aim of the guide is to stress the duty on members to act with the highest ethical standards and integrity.
The guide explains what ‘green finance’ is and gives members support in how to incorporate green finance criteria into their decision-making.
It sets out the need for members to act as role models when it comes to sustainability.
While the guide is written for members, it can be used by all members of the insurance and personal finance professions, the CII says.
The guide recognises that protection of the natural environment is a global concern, and highlights action plans, resources and commitments made by regulators, governments and federations across the world to enable effective change.
The guide summarises the CII’s specific expectations of members in relation to each element of its Code of Ethics.
It notes that for members to act with the highest ethical standards and integrity, they should:
- Consider what an outsider would think of their choices, including ‘how would this decision impact the environment in 5/10/15 years?’
- Promote professional standards throughout the sector, sharing good practice and seeking alignment and commonality with other firms
- Encourage their company to publish a green finance strategy, perhaps under the umbrella of a wider set of ESG commitments
- Consider speaking up if they witness practices within their organisation which would lead to environmental damage
- Develop the ability to put oneself in the position of others, and make choices that ‘do good’ for many – not just those in their direct circle.
Publication of the guide follows the Financial Conduct Authority’s publication of an open letter setting out a review of ESG benchmarks.
CII chief executive Alan Vallance, said: “Professionals are often at the cutting edge of change in our lives, leading the way and setting examples for others to follow. One of the greatest needs of our time is to make sustainable choices for the future, and be mindful of protecting our environment and natural resources. Clients are increasingly aware and concerned about their impact on the planet, and many firms in which professionals work have ESG policies that they expect their staff to uphold.
“This Companion Guide seeks to help insurance and personal finance professionals understand that their responsibilities when it comes to Green Finance are part of their duty to act ethically, and learn about how they can make a difference day to day to meet the needs of the planet, as well as the needs of their clients.”
• The CII has joined forces with Chartered Body Alliance bodies to develop a Certificate in Climate Risk – a qualification which aims to support finance and risk professionals globally to develop their expertise in this area.
