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MetricNature-related financial impacts

Increase in insurance costs due to nature-related loss and damage

Measurement answer

What this metric measures

Reports the percentage increase in insurance costs, relative to the prior reporting period, attributed to nature-related loss and damage events.

Specification

Metric specification

Result format
Single value
Unit
percent — source-defined reporting unit
Reporting basis
Current reporting period compared with the prior reporting period
Aggregation
Percentage change in insurance costs attributable to nature-related loss and damage across the reporting entity's reported boundary
Pillar
Environmental
Topic
Nature-related financial impacts
Controlled domain
Sustainable finance
Entity type
Metric

Reporting boundary

Reporting entity insurance costs attributable to nature-related loss and damage events

Verified source occurrences

Framework coverage

This is one canonical metric. The bindings below show every verified framework occurrence without creating duplicate metric pages. Edition, disclosure, role, and relationship remain source-specific.

  • Adopting Disclosure

    TNFD LEAP approach

    r010
    Publisher
    Taskforce on Nature-related Financial Disclosures
    Edition
    Version 1.1, October 2023
    Requirement
    Not Specified
    Relationship
    Reuses Canonical Metric
    Mapping outcome
    Reused
    Source locator
    TNFD LEAP Approach v1.1, Annex 1, Table 26, PDF page 173, metric row 2
    Open official framework source
  • Adopting Disclosure

    TNFD Recommendations

    Source evidence
    Publisher
    Taskforce on Nature-related Financial Disclosures
    Edition
    September 2023
    Requirement
    Not Specified
    Relationship
    Defines Disclosure
    Mapping outcome
    Direct Evidence
    Source locator
    Page 94, Table 9, A8.3
    Open official framework source
  • Adopting Disclosure

    TNFD Recommendations

    37dd0b58b5d33155dc8f
    Publisher
    Taskforce on Nature-related Financial Disclosures
    Edition
    September 2023
    Requirement
    Not Specified
    Relationship
    Maps Source Identity
    Mapping outcome
    Published
    Source locator
    Page 94, Table 9, A8.3
    Open official framework source

Value structure

Dimensions and units

Unit
percent — source-defined reporting unit
Reporting basis
Current reporting period compared with the prior reporting period

Unit meaning: Values use percent under the disclosed TNFD Recommendations method, period, location and reporting boundary.

Published dimensions

  • reporting period
  • prior reporting period
  • nature-related loss and damage attribution
  • reporting entity boundary

Calculation method

Formula information

Status
Specified
Formula type
Percentage

Formula

((C_current - C_prior) / C_prior) × 100

Apply the source-defined TNFD Recommendations method only within the disclosed location, ecosystem and value-chain boundary. A8.3 specifies a reportable percentage increase in insurance expenses relative to the prior year and identifies the required attribution to nature-related loss and damage. It is a standalone financial-impact metric, retained as an Annex 2 optional additional metric and not treated as a core acceptance gate.

Variables

SymbolVariableDefinitionUnit
C_currentCurrent-period attributable insurance costsInsurance costs in the current reporting period attributed to nature-related loss and damage events.currency
C_priorPrior-period attributable insurance costsInsurance costs in the prior reporting period attributed to nature-related loss and damage events, measured on a comparable basis.currency

Verified sources

Evidence and status sources

Sustopedia checked each record-specific claim directly against primary publisher material. Labels distinguish current measurement authority from future compatibility and corroborative, legal, edition, or method status context. Corroborative evidence can support a stated limitation but cannot establish the core measurement by itself.

Measurement evidence

  • Measurement evidenceChecked 27 August 2026

    Recommendations of the Taskforce on Nature-related Financial Disclosures

    Publisher
    Taskforce on Nature-related Financial Disclosures
    Edition
    September 2023
    Locator
    Page 94, Table 9, A8.3

    Supports: The official TNFD Recommendations source supports the identity, boundary and method basis of “Increase in insurance costs due to nature-related loss and damage”.

    Open official source

Use with context

Interpretation boundaries

Method disclosures required

Source-edition basis: Recommendations of the Taskforce on Nature-related Financial Disclosures, September 2023.

  • Define insurance costs included in the metric and the reporting-entity boundary.
  • Describe the method, evidence, assumptions, and judgement used to attribute insurance costs and their change to nature-related loss and damage events.
  • Disclose the current- and prior-period insurance-cost values used as the comparison basis, including treatment of a zero or immaterial prior-period value.
  • State whether changes in insurance coverage, deductibles, premiums, claims experience, or portfolio composition affected comparability.

Record-specific limitations

  • The metric depends on the entity's attribution of insurance-cost changes to nature-related loss and damage events.
  • A percentage change can be unstable or not meaningful where prior-period attributable insurance costs are zero or immaterial.
  • TNFD presents A8.3 as an optional additional metric in Annex 2, rather than an Annex 1 core global metric.

Interpret this metric with the stated reporting boundary, period convention, value shape, and unit. Results prepared with different boundaries or conventions may not be directly comparable.

Measurement evidence supports the core record-specific claims described above. Corroborative evidence can support limitations, while compatibility and status sources provide their separately labelled context. None of these cards by itself determines an organisation's legal applicability, filing readiness, assurance status, or compliance conclusion.