Amid insurers’ 2024 annual reports, they are also rolling out their sustainability reports, offering a crucial opportunity to scrutinise their climate commitments and their progress on meeting environmental targets.
For insurers operating in Europe, this reporting cycle marks their first attempt at aligning with the EU’s Corporate Sustainability Reporting Directive (CSRD).
The directive, which came into effect last year, requires large publicly listed companies, including insurers, to disclose a broad set of qualitative and quantitative sustainability data. Among the first insurers to publish their CSRD-aligned reports are Scandinavian groups Danica Pension, Tryg, and Gjensidige.
However, the future of the CSRD is uncertain. Last month, the European Commission unveiled its first Omnibus package, which includes proposals to scale back and simplify sustainability reporting requirements. This raises questions about the long-term scope of the directive.
Also stepping up to the reporting plate are UK-based Aviva and Swiss insurer Zurich, both of which released their latest sustainability reports this month.
Zurich’s report revealed plans to intensify engagement with its highest-emitting customers to drive a reduction in greenhouse gas emissions. Between September 2024 and September 2025, the insurer said it will work with 65 of its largest insurance customers on their transition-related objectives, challenges, and opportunities. By 2030, Zurich aims to expand this initiative to 450 corporate clients. Additionally, the insurer revealed that it has divested from several corporations after its climate engagement efforts failed to yield progress.
Meanwhile, Aviva has published its climate-related financial disclosures and unveiled its second transition plan, making a significant step forward by incorporating nature-related commitments.
The report outlined initiatives to support customers in transitioning to electric vehicles, reducing its own operational emissions, and cutting emissions from its investment portfolio.
However, Aviva has once again delayed the disclosure of its insurance-associated emissions, citing ongoing challenges with data quality and methodology. While the insurer has previously pledged to publish these figures, it acknowledges limited control over Scope 3 underwriting emissions, despite these emissions accounting for the majority of its overall climate impact.
Aviva is not alone in facing this challenge, with most other firms still to disclose insurance-associated emissions. The entire industry is grappling with how to accurately calculate insurance-associated emissions. To explore the significance of these emissions and their implications, InsuranceERM will be hosting a free webinar on Wednesday, 26 March at 3pm GMT. You can sign up here.
Elsewhere in the climate and sustainability sphere, Swiss Re has published research showing that coastal natural habitats could help reduce flood loss frequency by up to 65%.
The Partnership for Carbon Accounting Financials (PCAF) has also gained a new member with Malaysian life insurer Hong Leong Assurance joining its ranks. This brings the total number of insurers in the carbon accounting initiative to 29.
Additionally, Willis, a WTW business, and Global Parametrics made the first parametric payout to coffee farmers in Vietnam. This follows WTW winning nature/biodiversity initiative of the year at InsuranceERM’s 2024 global climate & risk sustainability awards.
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