Navigating the evolving climate-related disclosure requirements for insurers

Climate-related disclosure regimes around the world are undergoing significant transformation as a direct result of the growing urgency to address climate change and the associated risks. Insurers across the globe are at the forefront of these regulatory shifts, with increasing emphasis on transparency, accountability, and alignment with international climate goals.

Staying ahead

This article explores the recent changes and anticipated developments, particularly in the United Kingdom, the United States, the European Union and Australia. Exploring some of the themes that will impact insurers, we shine a light on: 

• Strengthening disclosure through TCFD alignment in the UK
• From voluntary to mandatory disclosure in the US
• Leading with the CSRD and the Green Taxonomy in the EU
• Mandatory Reporting gets the green light in Australia

The future

As climate change reporting evolves, some commentators suggest that increased accountability will help reduce the carbon footprint of large corporations that are major greenhouse gases emitters.

Disclosure requirements are likely to grow in scope and complexity as governments and regulatory bodies around the world look to align reporting frameworks. Insurers will face increased regulatory, investor and social pressures to provide transparent and detailed information about their climate-related risks, strategies and emissions, so will need to stay ahead of these changes by integrating robust governance structures, leveraging reliable data and embedding sustainability into their core business models.