Climate Risk & Disclosure

The interactive data visualisation tool accompanying the IPCC Sixth Assessment Report providing regional climate projections for temperature, precipitation, and extreme events under different warming scenarios (1.5°C, 2°C, 3°C, 4°C) for any region globally. The most accessible free resource for understanding directional climate trend by region and peril. For a practitioner, the most useful function is selecting a specific region (e.g. Southeast Asia, Mediterranean, Southern Australia) and a variable (e.g. maximum daily precipitation, number of hot days) and seeing how the projected change compares across warming scenarios and time horizons. Download underlying data for use in internal climate adjustment analyses.

Authoritative climate data and services from the European Centre for Medium-Range Weather Forecasts — including seasonal climate outlooks, climate projections, and the ERA5 reanalysis dataset underpinning most parametric product design. The C3S Climate Data Store provides access to observed and projected climate variables globally. Used for understanding historical climate trends and near-term (seasonal to decadal) climate projections relevant to portfolio-level physical risk assessment. Free access with registration.

The framework that defined how organisations should assess and disclose climate-related financial risks covering governance, strategy, risk management, and metrics and targets. Now incorporated into IFRS S2 but still the reference framework widely cited in insurance industry climate disclosures. Understanding the TCFD scenario framework (1.5°C, 2°C, 4°C pathways) is essential for cat modellers asked to provide physical risk inputs to climate disclosures these pathways define the boundary conditions for climate-adjusted loss projections.

The new global baseline for sustainability and climate-related financial disclosures S1 covers general sustainability risks and S2 covers climate-related risks specifically, incorporating the TCFD recommendations. IFRS S2 creates a direct link between cat model output and public financial disclosure requiring insurers to disclose how physical climate risks affect underwriting results and strategy. Cat modellers at IFRS-reporting entities will increasingly be asked to provide climate-adjusted loss scenarios for S2 compliance.

Standardised climate scenarios developed by the Network for Greening the Financial System for use in financial sector stress testing covering orderly transition (Net Zero 2050), disorderly transition (Delayed Transition), and failed transition (Hot House World) pathways. Increasingly used by (re)insurers for climate stress testing particularly for boards and regulators who want to understand how underwriting results might differ under different long-run warming pathways. The physical risk component of the NGFS scenarios maps directly onto cat model output at different time horizons.

A global partnership of financial institutions developing and implementing harmonised approaches to assess and disclose greenhouse gas emissions associated with loans, investments, and insurance underwriting. The PCAF standard for insurance underwriting provides guidance on measuring the financed emissions embedded in insurance portfolios. Relevant for underwriters at firms with net-zero commitments being asked to quantify the carbon footprint of their insured portfolios a growing requirement from institutional cedants and regulators.

Lloyd's published guidance on how the Lloyd's market is incorporating climate change into underwriting strategy, risk appetite, and product development including specific guidance for syndicates on assessing physical climate risk in their portfolios. More operationally relevant than the IPCC for Lloyd's practitioners it translates the climate science into specific expectations for how syndicates should be thinking about climate trend in their cat accumulation management and product development strategies. Provides the market-level framing within which individual syndicate climate risk work should sit.

A global insurance industry initiative under the University of Cambridge Institute for Sustainability Leadership providing principles and guidance for how insurers should integrate climate change into their underwriting, investment, and engagement activities. Member companies include major Lloyd's and international (re)insurers. Provides practical frameworks for operationalising climate risk in underwriting decisions more actionable for practitioners than the IPCC or NGFS at the individual underwriting workflow level. Reporting framework and member guidance documents are freely available.