The global insurance sector has a pivotal role in the transition to a lower emissions, resilient and sustainable global economy, both in terms of the risks it covers and the investments it makes. Sustainable insurance involves a strategic approach where all activities in the insurance value chain take into account risks and opportunities associated with environmental, social and governance (ESG) issues. One of the challenges facing the insurance sector, is ensuring accurate, informative and timely climate-related financial disclosures.
This paper outlines supervisory and regulatory practices for implementing climate-related financial disclosure systems. The report builds on the recommendations for climate-related financial disclosure presented by the Taskforce for Climate-related Financial Disclosures (TCFD). It also presents a range of case studies highlighting the improvements in the quantity, quality and comparability of climate-related disclosures observed through the implementation of the TCFD recommendations.
The report is prepared by the Sustainable Insurance Forum (SIF), a global network of 33 insurance supervisors and regulators working together to strengthen responses to sustainability and climate change challenges facing the insurance sector. The recommendations that the report addresses apply voluntarily to all financial sector organizations, including banks, insurance companies, asset managers and asset owners.