COP27 corporate environmental transparency

COP27 discussions have focussed on transparency under the banner  “Together4Transparency” including discussion of “the role that information plays in reducing risks and uncertainties in order to attract financial support for action”.

More details of the discussion can be found in the article from the UN: Transparency and Accountability Underpin Effective Climate Action

Insurance supports action for climate change by helping to attract financial support and investment in the green energy transition. It can also play an important role in supporting transparent reporting.

This relationship was highlighted in Energy Storage News, featuring an interview with Altelium’s Chairman, Charley Grimston.

Insurance has always been a building block of market growth. The possession of insurance or, in the case of lithium-ion battery products, an insured warranty, is a sign that the product is supported, understood, evaluated and assessed against risk.

The warranty will last beyond the life of the original manufacturer and gives the product quality assurance and bankability, enabling the market to grow and mature. It therefore plays a vital role in the development of the battery energy storage market.

In addition to this role in helping to secure finance, or in taking risk and financial liability off a business’s balance sheet, insurance can play a key part in helping to meet Environmental Social and Governance (ESG) targets. In doing this, it also helps address and overcome some of the key challenges of the sector, namely confidence in battery lifecycles and fire safety risks.

This is because the information and techniques required to secure insurance, such as due diligence of risk and risk mitigation, are also required by new climate change regulations.

The process can also play a meaningful part in establishing best practice procedures relating to site planning, design and operation to mitigate fire risk, particularly in the context of securing Operational All Risk (OAR) insurance for energy storage sites.