Report by Ceres analyzes insurers' alignment with global
climate disclosure standards
BOSTON, June 18,
2024 /PRNewswire/ -- A new report released today by
Ceres reveals that while major U.S. insurance companies are making
progress in disclosing their climate-related risks and strategies,
significant gaps and disparities persist across the sector.
The report, Navigating Climate Risks: Progress and
Challenges in U.S. Insurance Sector Disclosures, analyzes
the disclosure reports from 516 insurance groups, which total more
than 1,695 individual companies, submitted to the National
Association of Insurance Commissioners' (NAIC) Climate Risk
Disclosure Survey for reporting year 2022.
The survey is aligned with the framework developed by the Task
Force on Climate-related Financial Disclosures (TCFD), the leading
global standard for corporate climate risk disclosure.
Key findings from the report:
- 94% of insurers reported on risk management processes, 86% on
strategy, 81% on governance, but only 29% disclosed metrics and
targets related to climate risks.
- Just 26% of insurers provided disclosures across all four
pillars of the TCFD framework (governance, strategy, risk
management, metrics and targets).
- A year-over-year comparison showed slight improvement in risk
management integration, identifying climate risks and
opportunities, and reporting greenhouse gas emissions.
- However, insurer disclosures declined in two areas: describing
management's role in assessing climate risks and setting targets to
manage risks and opportunities.
- Adoption of climate scenario analysis is increasing but still
low, with only 116 insurance groups (22%) conducting this
forward-looking assessment in 2022.
(Editor's note: These and the other measurements only reflect
that reporting in these areas is included. It does not reflect that
all of them are comprehensive in nature.)
The report highlights best practices from insurers and provides
recommendations for companies and regulators, such as:
- Establishing common methodologies and scenario analysis
frameworks
- Setting clear board and management oversight for climate
issues
- Investing in tools to measure greenhouse gas emissions across
all scopes
- Engaging constructively on climate policy and regulatory
development
In addition to response analysis, Ceres commissioned Manifest
Climate, the leading climate intelligence software, to analyze
TCFD-alignment using its proprietary methodology and AI-powered
platform.
This is Ceres' second annual report analyzing the insurance
industry's annual TCFD disclosures. In 2023 Ceres, in partnership
with the California Department of Insurance and Manifest Climate,
released the first systematic review of U.S. insurance companies'
climate risk strategies.
Media Contact: Diane May,
dmay@ceres.org, 617-247-0700 ext. 220
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SOURCE Ceres