This module is designed to assess the greenhouse gas (GHG) emissions generated by your insurance lines which are called Insurance-Associated emissions (scope 3.15).
1. Why consider insured emissions?
Insured emissions represent the greenhouse gas emissions associated with insurance lines. They are a crucial component of a financial institution's carbon footprint, often representing the largest source of emissions impact.
2. Insurance types
This module covers different types of insurance : Commercial Lines or Personal Motor Lines.
Within Commercial lines these insurance types are covered:
Property (e.g., fire, multi-peril)
Liability/Casualty (e.g., General Liability, Product Liability, Product Recall, Environmental Liability)
Commercial motor (all lines)
Marine (liability and hull)
Aviation (liability and hull)
Agriculture (excluding government schemes, arrangements)
Trade credit (insurance of credit risk for sold goods) and political risk – primary insurance only
All other engineering lines (e.g., machinery breakdown and electronic equipment)
Other/Special lines (e.g., Financial Lines [e.g., Professional Indemnity, D&O], workers compensation)
Statutory lines of business
If your insurance product are from another type, you should refer to your Climate Expert that will guide you to another adapted module.
3.1 Commercial Lines: data required & calculation method
Name of the Company
Re/Insurance premium
Company revenue
Result of latest GHG assessment
If Result of latest GHG assessment is not available, NACE code, Country of operation and Revenue of the company
If Revenue is not available, Number of employees of the company
Financed emissions are calculated using this core formula:
Insured Emissions = Attribution Factor × Emissions of Company
Here's how each component works:
Attribution Factor: This represents your share of the annual emissions of the customer. It's calculated by dividing your re/insurance premium for that customer by the revenues generated by the customer. It must be inferior to 1.
Emissions of the Company: These can be determined through several methods, in order of precision:
Using the company's verified GHG assessment
Using the company's unverified GHG assessment
Estimating based on the company's physical activity data collected from the insured company
Estimating based on the company's revenue, sector, and country using EXIOBASE coefficients. For estimation using EXIOBASE, the calculation takes into account both direct emissions within the sector and indirect emissions from upstream sectors, including those occurring abroad.
3.2 Personal Motor Lines: data required & calculation method
Insurance label/name [MANDATORY]
Insurance premium amount [MANDATORY]
Total Cost of Ownership of the vehicle [MANDATORY], if unavailable please use 6.99% as recommended by the PCAF methodology (link to the article) [MANDATORY]
Actual fuel consumption and fuel efficiency of the vehicle
If Actual fuel consumption is not available, actual annual distance or location and fuel efficiency of the vehicle
Financed emissions are calculated using this core formula:
Insured Emissions = Attribution Factor × Emissions of Vehicle
Here's how each component works:
Attribution Factor: This represents your ownership share of the vehicle’s emissions as an enabler. It's calculated by dividing your re/insurance premium for that customer by the vehicle value. It must be inferior to 1.
Emissions of the vehicle: These can be determined through several methods, in order of precision:
Using the vehicle’s actual emissions
Estimating based on the vehicle’s actual fuel/energy consumed and distance travelled
Estimating based on the vehicle’s model, year, engine type and city using averages and local/regional statistical data
The methodology follows the Partnership for Carbon Accounting Financials (PCAF) standard, which has been validated by the GHG Protocol.
4. Upload your data
To complete the module, go to Data > Data collection > Insurance and follow the steps below:
1. Download the Greenly template to import your data. Click on "Import data" then "Bulk import"
2. Please follow the process written in the ‘READ ME’ tab of the file to fill the mandatory columns correctly.
3. Upload your completed template onto the module. A Greenly analyst will take over to compute the related carbon emissions and import the results.
5. Results
The Results page offers a clear and detailed view of the financed emissions by sector, portfolio, and other insightful analytics.
You can check the calculation methodology details for each asset, by going to the Data Upload page and click on the Methodology button:
Formula explanation:
Quantity x EF factor x Conversion factor = Financed emissions
Quantity: quantity which is the outstanding amount of investment
EF factor: Financed emissions / Outstanding amount
Conversion factor: A conversion factor is a numerical value, typically expressed as a ratio or fraction, used to convert a quantity from one unit of measurement to another.
Financed emissions
If you would like to check the EF selected based on the NACE code and country of operation, please ask your climate expert.