The Principles for Sustainable Insurance (PSI) were established by the United Nations Environment Programme Finance Initiative (UNEP FI). Here’s a detailed explanation:
UNEP FI and PSI: The United Nations Environment Programme Finance Initiative (UNEP FI) launched the Principles for Sustainable Insurance in 2012. The PSI aims to promote sustainability within the insurance industry by encouraging insurers to integrate environmental, social, and governance (ESG) factors into their business strategies and operations.
Objectives of PSI: The PSI provides a global framework for the insurance industry to address ESG risks and opportunities. It helps insurers improve risk management and decision-making processes, enhance their reputation, and contribute to sustainable development.
Not the Other Options:
Climate Disclosure Standards Board (CDSB): The CDSB is an international consortium of business and environmental NGOs. It was not established by UNEP FI but aims to provide a framework for companies to report environmental information with the same rigor as financial information.
Global Sustainable Investment Alliance (GSIA): The GSIA is a collaboration of the world's largest sustainable investment membership organizations. It was also not established by UNEP FI but works to deepen the impact and visibility of sustainable investment organizations.
CFA ESG Investing References:
According to the CFA Institute, the PSI was developed by UNEP FI to promote the integration of ESG factors in the insurance industry, enhancing the industry's role in sustainable development (CFA Institute, 2020).
The PSI is highlighted as a key initiative under UNEP FI to advance sustainable insurance practices globally.
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