Zurich’s Scott: don’t levy climate risk capital charges

Imposing set-asides based on stress tests “does not make any sense”, sustainability chief warns watchdogs

Five years ago, as chief risk officer for underwriting giant Zurich Insurance’s commercial business lines, John Scott’s mind was on esoteric risks such as the health threat posed by nanoparticles, or the Internet of Things. Now, it’s focused squarely on the existential threat facing the entire planet.

In his current role as head of sustainability risk, Scott – a geologist by training – is responsible for measuring and managing Zurich’s potential losses from climate risk across an intimidating