Ivo Menzinger is head of sustainability and emerging risk management and an executive team member of the risk management division of Swiss Re in Zurich. He has worked for the company since January 1998, starting as a specialist for natural hazard and flood risk assessment. His department is in charge of improving the identification and management of environ¬mental, social and political risks and opportunities, and of emerging risks. It also drives Swiss Re’s commitment to provide ethical and socially and environmentally responsible products and services.
What one single thing convinces you that climate change is taking place?
For me, it’s the fact that carbon dioxide concentration in the atmosphere now stands at 380 parts per million, which is way above what the earth has experienced for 800,000 years. In all that time, there has never before been a period where the concentration has been above 280 parts per million.
What’s in it for businesses to adapt their models to climate change? How will that benefit them? What are the risks if they do not?
The big effect will be the opportunities that there are going to be. People have to replace their heating systems with more efficient ones or systems that use renewable and alternative energy. There are enormous opportunities for energy-efficient and alternative energy technology.
Do you think the EU and national governments are doing enough to raise awareness and tackle the issue of climate change?
I think the UK government has really done a terrific job as one of the leading governments in Europe on this issue. However, I think governments could do more in general. There is so much more to be done than Kyoto, which committed industrialised nations to reduce their emissions by five per cent, compared to 1990 levels.
What role should insurance play in understanding and managing the impact of climate change?
The insurance industry is in a privileged position to understand the implications of climate change because risk – including long-term risk – is our business. This makes the industry an important partner in efforts to shape a framework in which the transition to a low carbon economy is efficiently incentivized. In addition, we can play an important role in providing risk transfer solutions that foster both mitigation of, and adaptation to, climate change.
