Ceres published its 2025 Progress Report on climate risk reporting in the US insurance sector, finding that large insurers are improving their disclosure of climate-related risks and governance but continue to provide limited, decision-useful information on metrics and targets. The review assesses disclosures made through the National Association of Insurance Commissioners (NAIC) Climate Risk Disclosure Survey for reporting year 2023. The report analyzes submissions from 526 insurance groups representing more than 1,723 individual companies and benchmarks responses against the Task Force on Climate-related Financial Disclosures (TCFD) framework, using analysis conducted with Manifest Climate. It found that 99% of insurers reported on risk management processes, 97% on strategy and 87% on governance, while only 29% disclosed climate-related metrics and targets, and just 28% provided disclosures across all four TCFD pillars. Year-on-year improvements were noted in risk management integration, identification of climate risks and opportunities, and greenhouse gas emissions reporting, while the metrics and targets pillar showed virtually no improvement; scenario analysis adoption increased to 148 groups in 2023 from 116 in 2022. Ceres also sets out best practices and recommendations for insurers and regulators, including developing comprehensive metrics frameworks covering underwriting and investment portfolios, setting science-based targets with interim milestones and baselines, improving tools to measure emissions across all scopes, and moving from TCFD-aligned disclosure toward actionable climate transition plans.
Ceres 2025-06-04
Ceres report finds major US insurers improving climate risk disclosures but metrics and targets gaps persist
Ceres' 2025 Progress Report on US insurance sector climate risk reporting highlights improved disclosure of climate-related risks and governance among large insurers but notes limited metrics and targets information. Based on the National Association of Insurance Commissioners Climate Risk Disclosure Survey, the report found significant improvements in risk management and greenhouse gas emissions reporting, while metrics and targets showed little progress. Ceres recommends developing comprehensive metrics frameworks and actionable climate transition plans.