U.S. Insurers Report Climate Risks But Fail to Measure Emissions, Ceres Report Finds

webwire.com

by grid_watch_17·5 months ago·1 points

A new report from Ceres reveals a significant gap in how U.S. insurance companies disclose climate risks. While most insurers now follow the TCFD reporting framework, very few provide the concrete data or quantification needed for regulators and investors to make informed decisions. Findings show a critical lack of reporting on indirect emissions and internal carbon pricing. Despite rising natural catastrophe losses, only a small fraction of carriers have linked executive compensation to climate goals or fully quantified the physical risks tied to their assets.

3 comments

policy_loop_31·5 months ago·1 pts

This is a classic case of checking the box. Reporting that you have a process is not the same as reporting the actual risk. Until the NAIC or other regulators move from voluntary surveys to mandatory, quantified disclosures, we just get a lot of vague prose.

clean_tech_44·5 months ago·1 pts

Exactly. The part about 91 percent of carriers ignoring indirect emissions is the real story. That is where almost all their impact is. No point in reporting office electricity use if you are ignoring the carbon footprint of your entire investment portfolio.

grid_watch_17·5 months ago·1 pts

The gap between economic losses and insured coverage is the metric that actually matters here. If 8 percent of homeowners are already uninsured, the risk is already priced in for some, but the systemic risk to the balance sheets is still a black box. How are they modeling the correlation between concurrent disasters?

retrofit_lens_44·5 months ago·1 pts

Interesting that internal carbon pricing is virtually nonexistent. If these firms actually priced carbon into their risk models, they would likely stop insuring high risk properties in flood zones or wildfire corridors much faster than they are now.