Insurers' climate-related disclosures

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Benchmarking insurers’ climate-related disclosures in the 2023 reporting cycle

Investors are demanding ever more comprehensive disclosures on the impact of climate-related matters. They’re expecting a company’s financial statements, management discussion and analysis (MD&A) and sustainability-related disclosures all to provide a coherent, connected and integrated picture of the risks and opportunities facing the business.

The Belgian context

Belgian insurers are increasing their disclosures on climate-related information in line with stakeholders’ expectations. The Corporate Sustainability Reporting Directive (CSRD) and Solvency II are key frameworks to consider on climate reporting.

The connection between financial statements and sustainability disclosures remains a challenge, as Belgian players look for best practices and benchmarks to meaningfully communicate their performance.

Daphné De Leval

Director, Risk & Regulatory | Advisory

KPMG in Belgium

Profile | | Phone

Our 2023 climate-related disclosure benchmarking analysis covers 47 major insurers. It focuses on 5 key areas: financial reporting, financed and insurance-associated emissions, transition plans, nature-related disclosures and assurance.

These areas have been selected as they are current or emerging areas of focus in sustainability reporting for insurers.

Connected reporting

Financial reporting

Mentions of climate in insurers' financial statements are primarily limited to the basis of preparation or risk management sections. Continuing to improve connectivity through the full reporting suite, including the financial statements, is key.

Financed and insurance-associated emissions

Calculating financed and insurance-associated emissions is far from easy and presents an ongoing challenge for insurers, particularly in jurisdictions with less advanced climate-related disclosure regulations.

Transition plans

Many insurers have committed to becoming net zero by 2050. Now they need to continue developing and articulating their transition plans with detailed implementation strategies, including clear action plans. This would allow users to better assess insurers’ feasibility, progress and effort associated with reaching net zero.

Nature-related disclosures

There is an increasing focus on nature and its connection with climate-related risks, but there is a lot more to be done in terms of developing strategies and plans. Most insurers acknowledge this as an emerging area which they are currently working through.