Insights from Insurers’ First-ever CSRD Reports: Claims Emissions Are Material, but Calculation Methods Differ

As part of the first wave of disclosures under the Corporate Sustainability Reporting Directive (CSRD), Claims Carbon analyzed sustainability reports of leading Nordic and European insurers to understand how claims emissions are being reported. 

Our analysis covered companies such as If, Tryg, Gjensidige, Storebrand, Protector, LähiTapiola, Länsförsäkringar, Fennia, and Aviva. These insurers are among the early movers in addressing claims-related emissions – a significant but previously underreported source of greenhouse gases (GHGs) within the insurance sector.

This article highlights key learnings from the reported disclosures by the concerned insurers, focusing on how claims emissions are categorized, scoped, monetized, and ultimately interpreted in terms of materiality. The findings point to the growing relevance of claims emissions and emphasize the need for harmonized standards to support consistent and transparent reporting across the industry.

Urgent need for a clear and consistent standard

A growing number of leading Nordic and European insurers have started disclosing claims emissions, reinforcing their material importance in the context of CSRD reporting. Compared to other categories, claims emissions often represent one of the largest contributors to an insurer’s greenhouse gas (GHG) inventory.

We observed different approaches among insurers in categorizing these emissions. For instance, If and Tryg report under Scope 3 Category 11 ("Use of Sold Products"), while Gjensidige and Storebrand report under Scope 3 Category 1 ("Purchased Goods and Services" – such as by claims suppliers). We will discuss the implications of this selection in our upcoming article.

There are also inconsistencies in how insurers scope their emissions. Some report only from major Lines of Business (LoBs), such as Motor and Property, while others include all LoBs or omit this detail entirely.

Monetizing emissions provides additional clarity on their financial impact. When applying a carbon price of €125 per tonne of CO₂e and comparing the resulting costs to Net Premiums Earned (NPE), we observed a 0.15% to 1.9% increase in Combined Ratios. This range reflects the wide variation in emissions intensity among insurers, with emissions per euro of NPE ranging from as low as 16gCO₂e to as high as 150gCO₂e. 

These findings underscore the urgent need for a clear and consistent standard to guide claims emissions reporting, similar to frameworks already in place for financed and insurance-associated emissions (IAE) under PCAF.

Findings from reviewed annual reports of P&C insurers

Conclusion

The evidence is clear: claims emissions are a material and often a dominant part of an insurance company’s climate footprint. Yet, without a common standard, the industry remains fragmented in how these emissions are scoped, calculated, and disclosed.

Now is the time to act. Insurers, regulators, and industry bodies must come together to develop a unified reporting standard for claims emissions – one that reflects the true impact of claims activities and aligns with broader sustainability goals.

By embracing standardization, insurers can unlock new opportunities to reduce claims costs, offer more competitive pricing, and deliver greater value to customers. Just as importantly, they can lead the transition to a circular economy – prioritizing repair and reuse over replacement – and create a more sustainable claims ecosystem.

Let’s seize this moment to turn climate reporting from a compliance exercise into a catalyst for innovation, efficiency, and environmental leadership.

References

If: https://www.sampo.com/globalassets/year2024/if/if_annual_report_2024.pdf

Tryg: https://tryg.com/en/dokumenter/trygcom/annual-report-2024.pdf

Gjensidige: https://www.gjensidige.com/sustainability/responsible%20investments/Annual%20report%202024.pdf

Storebrand: https://www.storebrand.no/en/investor-relations/annual-reports/_/attachment/inline/f7268ecb-0b2b-44e3-b264-bb93a0a06afa:afbfc17fd8ac42a515a6a48fb54eaec364e37ae0/2024-annual-report-storebrand-asa.pdf

Protector: https://protectorforsikring.no/getfile.php/138692-1742385526/Documents/Investor%20Relation/Annual%20Reports/ENG/2024%20Annual%20Report.pdf

Lähitapiola: https://www.lahitapiola.fi/sv/om-lokaltapiola/nyhetsrum/aktuellt/localtapiola-groups-financial-statement-presentation-for-2024/

Länsförsäkringar: https://mb.cision.com/Main/152/4130104/3364420.pdf

Fennia: https://assets.ctfassets.net/9894b5zgk92p/7DGm8Q1nzHQxKrD1t6tTTF/67df429b3155a59a18b77d8c826cd2e9/Fennias_verksamhetsber%C3%A4ttelse__h%C3%A5llbarhetsrapport_och_bokslut_2024.pdf

Aviva: https://www.aviva.com/investors/annual-report/