Special Presidential Envoy on Climate Action (SPEC), Ajuri Ngelale, says there is a major shift in how commercial risk and value are assessed due to the rising frequency of climate disasters.

Speaking at the Global Energy Transition Congress in Milan, Ngelale said there has been notable changes in the insurance industry, especially in developed markets.

He emphasised that companies will increasingly be evaluated based on verifiable climate impact or mitigation measures.

Ngelale joined a Leadership Roundtable in Milan on Monday to develop solutions for boosting private sector investments in renewable energy and carbon capture projects, aiming to create de-risking finance pools to offer political risk guarantees for emerging markets.

“Gradually, we are seeing a paradigm shift with respect to how commercial risk and value are evaluated in the wake of an increasing frequency of climate disasters.

“The insurance industry, especially in developed markets, is just one sector seeing major changes – and a future in which companies will be assessed according to verifiable measurement of climate impact or mitigation is evolving into reality across sectors,” he said.