TCFD Disclosure Report

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Acme Insurance Company - TCFD Report 2026

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Completion: 68% Sections: 5 enabled

Climate Disclosure Report

Acme Insurance Company

Report Type

TCFD Aligned

Reporting Period

FY 2025

Generated

February 2, 2026

Version

Draft 1.0

Executive Summary

Overview of climate risk approach and key highlights

Acme Insurance Company is committed to transparency in our climate risk management practices. This report summarizes our progress in implementing the Task Force on Climate-related Financial Disclosures (TCFD) recommendations across all four pillars.

As a property and casualty insurer with $800 million in written premium, we recognize that climate change poses both risks and opportunities for our business. Our integrated approach to climate risk management spans underwriting, investment, and operations.

85%

Governance

72%

Strategy

54%

Risk Mgmt

61%

Metrics

1. Governance

Board oversight and management's role in climate risk

85% Complete

Board Oversight

The Acme Insurance Board of Directors maintains oversight of climate-related risks and opportunities through a dedicated Climate Risk Committee established in 2024. The Committee meets quarterly to review climate risk exposures, progress on emissions reduction targets, and strategic responses to regulatory developments.

The Board receives quarterly reports on climate metrics including catastrophe exposure concentrations, emissions performance against targets, and progress on TCFD implementation. Climate risk is a standing agenda item at each board meeting.

Management's Role

Our Chief Risk Officer leads management's climate risk efforts, supported by the Sustainability Officer and cross-functional Climate Working Group. Climate risk considerations are integrated into management's monthly risk review process and annual strategic planning cycle.

Executive compensation includes climate-related KPIs, including progress on emissions reduction targets and completion of TCFD implementation milestones.

2. Strategy

Climate-related risks, opportunities, and scenario analysis

72% Complete

Climate-Related Risks & Opportunities

We have identified physical risks including increased frequency of severe weather events affecting our property portfolio, and transition risks related to changing regulations and market preferences. Our coastal property exposure represents 23% of written premium, with highest concentrations in Florida and Texas.

Key Risk Categories
  • Physical Acute: Hurricane, wildfire, and severe convective storm exposure
  • Physical Chronic: Sea level rise impact on coastal properties
  • Transition: Regulatory changes, market shifts to green products

Business Impact

Under our central scenario, we project climate-related claims could increase 15-20% by 2030. Our reinsurance program has been structured to maintain acceptable volatility levels under stressed climate scenarios.

Scenario Analysis

We have completed scenario analysis using a 2°C transition pathway. Analysis of a 4°C physical risk scenario is in progress and expected to be completed in Q2 2026.

3. Risk Management

Processes for identifying, assessing, and managing climate risks

54% Complete

Risk Identification & Assessment

Climate risks are identified through our annual strategic risk assessment process, which includes scenario workshops with business unit leaders. We utilize catastrophe modeling enhanced with climate change factors to assess physical risk exposures.

Risk Management Process

Our underwriting guidelines have been updated to incorporate climate risk factors, including:

  • Restrictions on new policies in high-risk flood zones
  • Requirements for loss control inspections in wildfire-prone areas
  • Enhanced pricing for properties in coastal hurricane zones
  • Climate resilience credits for properties with mitigation features

Claims data is analyzed quarterly for climate-related trends, feeding back into our underwriting and pricing models.

Gap Identified: Climate risk appetite statement is in development. Full integration with enterprise risk management framework is planned for Q3 2026.

4. Metrics & Targets

Key metrics used to assess and manage climate risks

61% Complete

Emissions Data

Scope 1 Emissions

4,250 tCO2e

-6% vs 2024

Scope 2 Emissions

8,120 tCO2e

-6% vs 2024

Scope 3 Emissions

In Progress

Est. Q2 2026

Targets

We have committed to reduce Scope 1 and 2 emissions by 30% by 2030 from a 2023 baseline. We are evaluating science-based targets for our investment portfolio.

Climate Risk Metrics

Metric Value
Hurricane Exposure $272M (34%)
Wildfire Exposure $96M (12%)
Flood Exposure $144M (18%)
PML (1-in-100 year) $245M
Climate-adjusted Loss Ratio 67.2%

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