Business Specifications for the Climate-Related Risk Returns for Insurers

Return files

IC1 (OSFI 1002) - Sample return (CSV, 13.59 KB) IC1 (OSFI 1002) - Technical specifications (XLSX, 58.84 KB) IC2 (OSFI 1003) - Sample return (CSV, 6.88 KB) IC2 (OSFI 1003) - Technical specifications (XLSX, 58.11 KB) Field applicability matrices for Insurers (XLSX, 79.34 KB)

Purpose

The purpose of the Climate Risk Returns is to collect standardized climate-related emissions and exposure data, directly from all institutions to enable OSFI to carry out evidence-based policy development, regulation, and prudential supervision as it pertains to climate risk management.

These returns capture data to enable quantification of Insurers’ 1) potential and realized physical risk exposures; and 2) potential transition risk exposures, as at fiscal year-end.

More specifically, these returns collect data on:

• underwritten physical risk exposures (claims, insurance revenue and PML) for select lines of business, by geophysical location
• absolute greenhouse gas (GHG) emissions (Scopes 1, 2 and 3)

The data collection is confidential and will not be released publicly.

Application

These returns apply to all Insurers.

Frequency

Annual.

Filing Format

Returns are to be filed through RRS in .CSV format.

Implementation Date

The Returns are effective on or after October 31 for the following fiscal year-ends:

• 2024, for IAIGsThe term "IAIGs" refers to Internationally Active Insurance Groups. "IAIGs headquartered in Canada" refers to Sun Life Assurance Company of Canada, Manufacturers Life Insurance Company, Canada Life Assurance Company, and Intact Financial Corporation.
• 2025, for Non-IAIGs

Reporting Date

The returns must be completed on a fiscal year-end basis and filed within 180 days of the insurer’s fiscal year-end date.

For example, an IAIG with a December 31 fiscal year-end would complete its first return for the 2024 fiscal year, using data as at December 31, 2024 and file it by the end of June 2025. A non-IAIG with a December 31 fiscal year-end would complete its first return for the 2025 fiscal year, using data as at December 31, 2025 and file it by the end of June 2026.

Contact Agency

Office of the Superintendent of Financial Institutions (OSFI).

Contact Person

For business and/or interpretation questions on the final version of the return, contact us through the Climate Risk Return email address: ClimateRiskReturn-ReleveRisquesClimatiques@osfi-bsif.gc.ca.

Key Terms and Definitions

Units of Measurement for Reporting

Financial Figures

Reported financial figures, such as Insurance Revenue, Claims Paid, Reinsurance Recoveries, outstanding loan balances or investment security values, should be expressed in Canadian Dollars or Canadian Dollar Equivalent, with no commas or other separators, unless otherwise specified. Note, policy count is not expressed in Canadian Dollars or Canadian Dollar Equivalent.

Greenhouse gas (GHG) Emissions

All reporting on Absolute GHG Emissions, including Scope 1, Scope 2 and Scope 3 emissions should be reported in metric tons of carbon dioxide-equivalent (tCO₂-e).

Probabilities and Percentages

All probabilities and percentages should be reported as their decimal equivalents. For example, a figure of 1.09% should be reported as 0.01090.

Greenhouse gas emissions accounting

Regarding calculation of GHG emissions, the insurer is expected to use the latest GHG Protocol Corporate Accounting and Reporting Standard and the latest GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Regarding calculation of the portion(s) of Scope 3 GHG emissions, pertaining to the Insurer’s Financed, and/or Insurance-Associated GHG Emissions, the insurer is expected to use the latest Partnership for Carbon Accounting Financials’ (PCAF’s) Global GHG Accounting and Reporting Standard for the Financial Industry (PCAF Standard).

OSFI recognizes that there is often a lag between financial reporting and required data becoming available, such as emissions data for an insured client. Accordingly, for Financed and Insurance-Associated GHG Emissions, the insurer may use the most recently available emissions-related data from entities within its value chain alongside its own current year financial data. For example, when filing for fiscal year 2024, use financial data for fiscal year 2024 and GHG emissions data for fiscal year 2023.

Structure of the Climate-Related Risk Returns for Insurers

Tabular Structure of the Climate-Related Data Return Templates

Each data return is structured to contain three types of data fields:

• Sub-Table Field
• Categorical Data Fields
• Calculated Data Fields

An illustration, using an example from the structure of the IC1 (OSFI 1002) return, is shown below.

1. Sub-Table Field: This data field is used to report the Sub-Table of the return (return_subtable). See the section Return Sub-Tables below for further details.
2. Categorical Data Fields: These data fields are used to report qualitative data that are mutually exclusive. Categorical fields used in the Climate-Related Risk Returns for Insurers are as follows: asset_class, insurance_class, region, sector and, credit_quality region (N.B. asset_class, sector, and credit_quality are not fields included in the IC1 (OSFI 1002) return, consistent with the illustration above).
3. Calculated Data Fields: The data reported in these fields are to be calculated to reflect the maximum granularity established by the applicable Categorical Data Fields, unless otherwise noted. Referencing the illustration above, the policy count reported as 5924 in the first row in the field policy_count represents (is calculated as) the number of policies in the region (i.e. province or territory in Canada) that are of the insurance_class code ‘1’ (‘Personal Automobile’).

Reference Format

Submission keys that identify each data field being collected are included in the first row of each template. For ease of identification within this document, submission keys are formatted in lower case with underscored spacing, such as return_subtable.

For categorical fields, categorical codes and their related values are listed in single quotes, such as code ‘1’ and ‘Personal Automobile’ respectively.

Categorical Field Selections

Tables containing the comprehensive list of the selections available for each of the categorical fields, other than region, are provided in the appendices to this document as follows:

• Appendix I – Asset Classes
• Appendix II – Insurance Classes
• Appendix III – Regions
• Appendix IV – Sectors
• Appendix V – Credit Quality Ratings

These tables correspond to those included in the input templates for the IC1 (OSFI 1002) and IC2 (OSFI 1003) returns.

Return Sub-Tables

For reporting purposes, each return consists of a single data table that are divided into sub-tables that group related reporting data elements. The sub-tables for each of the returns are as follows:

Note: The return template Insurance Physical Risk Return IC1 (OSFI 1002) is not applicable to Mortgage insurers and Life and Health Insurers.

Note: The return template Insurance Transition Risk Return IC2 (OSFI 1003) is applicable to all in scope Insurers – see footnote 3.

Field Applicability by Sub-Table

The fields applicable for each Sub-Table are outlined in the Field Applicability Matrices document (XLSX, 80 KB). Reported fields are based upon the insurance_class for the IC1 Return, by asset_class for Sub-Table IC1-A and IC1-B of the IC2 (OSFI 1003) Return, and by insurance_class for Sub-Table IC2-C. Non-applicable fields should be reported as blank on each row.

Instructions for the Physical Risk Return IC1 (OSFI 1002)

This return collects data on insurance revenues and paid claims losses to assess Insurers’ historical loss experience due to Physical Risk from climate-related perils for select climate-exposed insurance classes. This return also collects Probable Maximum Loss (PML) data at a regional granularity to assess Insurers’ forward-looking loss exposures due to physical risk from climate-related perils.

Overview of Return Data Fields

The following fields are included in the IC1 (OSFI 1002) Return template:

Sub-Table Field

return_subtable

Categorical Data Fields

• insurance_class
• region

Calculated Fields

• insurance_revenue
• policy_count
• claims_paid_flood
• claims_paid_wildfire
• claims_paid_sev_convec_storm
• claims_paid_hurricane
• reinsur_claims_paid
• count_claims_paid_flood
• count_claims_paid_wildfire
• count_claims_paid_sev_convec_storm
• count_claims_paid_hurricane
• reinsur_count_paid
• reinsur_recov_wildfire
• reinsur_recov_flood
• reinsur_recov_sev_convec_storm
• reinsur_recov_hurricane
• reinsur_recov
• total_insured_value
• gross_pml_flood_1_100
• gross_pml_wildfires_1_100
• gross_pml_sev_convec_storm_1_100
• gross_pml_hurricane_1_100
• gross_pml_flood_1_250
• gross_pml_wildfires_1_250
• gross_pml_sev_convec_storm_1_250
• gross_pml_hurricane_1_250
• net_pml_flood_1_100
• net_pml_wildfires_1_100
• net_pml_sev_convec_storm_1_100
• net_pml_hurricane_1_100
• net_pml_flood_1_250
• net_pml_wildfires_1_250
• net_pml_sev_convec_storm_1_250
• net_pml_hurricane_1_250

The above fields are to be completed using the reporting template provided at IC1 (OSFI 1002) Technical Specifications (XLSX, 59 KB), following the instructions below for reporting claims losses and premiums applicable in Canada and outside of Canada, as well as PML data.

Field Applicability by Sub-Table

The fields applicable for each Sub-Table are outlined in the Field Applicability Matrices (See Link: Field Applicability Matrices document (XLSX, 80 KB)).

Sub-Table IC1-A: Insurance Claims and Revenue Metrics by Region (Canada and outside of Canada)

Report on all fields in the template for business written in Canada and outside of Canada, per the instructions below. References below to Claims Paid, Counts of Claims Paid and Reinsurance Recoveries should include only amounts that were paid/received as a result of physical damage caused by climate-related perils, and exclude claims paid due to non-natural causes such as burst pipes or arson, as well as liability-related and warranty-related claims.

Sub-Table Field

• return_subtable – Set field value to ‘IC1-A’ on each row reported

Categorical Data Fields

• insurance_class – Report the applicable Insurance Classes per table in Appendix II – Insurance Classes for each row reported. For multi-peril policies, include insurance written for commercial clients under “Other Commercial Lines”, otherwise use “Other Personal”.

  Note: Reinsurance companies should use code “6” (“RE Aggregated Data”, i.e., data not available by insurance_class) as per Appendix II – Insurance Classes to report on the applicable data fields. Code “6” (“RE Aggregated Data”) is applicable only to Reinsurance companies.

• region – Report the applicable region, i.e., the location of the insured risk (not the location of the insurance policy) in Canada and/or outside of Canada per the table in Appendix III – Regions on each row reported

Calculated Data Fields

• insurance_revenue – Report the dollar amount of Insurance Revenue for the insurance_class in the reported region for the fiscal year

• policy_count – Report the number of active policies written for the insurance_class in the reported region.

  Note:

  • For the purpose of the IC1 (OSFI 1002) returns, multi-perils policies are considered as one policy.
  • For reinsurers “policy count" should be interpreted as "treaty" coverage which should be considered as one policy.
  • For multi-location policies such as large commercial policies that cannot be specifically attributed to a single physical location using the available insured data, insurers should report using the code ‘C1’ ‘Canada-Other’ for the region data field as per Appendix III – Regions.
• claims_paid_flood – Report the dollar amount of flood-related claims paid under coverage offered in the insurance_class in the reported in the region, net of deductible and gross of Reinsurance Recoveries for the fiscal year
• claims_paid_wildfire – Report the dollar amount of wildfire-related claims paid under coverage offered in the insurance_class in the reported region, net of deductible and gross of Reinsurance Recoveries for the fiscal year
• claims_paid_sev_convec_storm – Report the dollar amount of Severe convective storms-related claims paid (excluding flooding related losses) under coverage offered in the insurance_class in the reported region, net of deductible and gross of Reinsurance Recoveries for the fiscal year
• claims_paid_hurricane – Report the dollar amount of hurricane related-claims paid under coverage offered in the insurance_class in the reported region, net of deductible and gross of Reinsurance Recoveries for the fiscal year
• reinsur_claims_paid – Report the dollar amount of climate-related claims paid for by the Reinsurer in the corresponding insurance_class field in the reported region for the fiscal year. Reinsurance companies should use code “6” (“Aggregated LOB”, i.e., data not available by insurance_class) as per Appendix II – Insurance Classes to report the aggregated dollar amount of climate-related claims paid. This field is applicable only to Reinsurance companies.
• count_claims_paid_flood – Report the number of flood-related claims paid under coverage offered in the insurance_class in the reported region for the fiscal year
• count_claims_paid_wildfire - Report the number of wildfire-related claims paid under coverage offered in the insurance_class in the reported region for the fiscal year
• count_claims_paid_sev_convec_storm – Report the number of Severe convective storms-related claims paid (excluding flooding related losses) under coverage offered in the insurance_class in the reported region for the fiscal year
• count_claims_paid_hurricane – Report the number of Hurricane claims paid under coverage offered in the insurance_class in the reported region for the fiscal year
• reinsur_count_paid – Report the number of climate-related claims paid for by the reinsurer in the corresponding insurance_class in the reported region for the fiscal year. Reinsurance companies should use code “6” (“Aggregated LOB”, i.e., data not available by insurance_class) as per Appendix II – Insurance Classes to report the aggregated count of climate-related claims paid. This field is applicable only to Reinsurance companies.
• reinsur_recov_flood – Report the dollar amount of Reinsurance Recoveries pertaining to flood-related claims for the insurance_class in the reported region, for the fiscal year
• reinsur_recov_wildfire - Report the dollar amount of Reinsurance Recoveries pertaining to wildfire-related claims for the insurance_class in the reported region, for the fiscal year
• reinsur_recov_sev_convec_storm – Report the dollar amount of Reinsurance Recoveries pertaining to Severe convective storms-related claims for the insurance_class in the reported region, for the fiscal year
• reinsur_recov_hurricane – Report the dollar amount of Reinsurance Recoveries pertaining to Hurricanes claims for the insurance_class in the reported region, for the fiscal year
• reinsur_recov – Report the dollar amount of Reinsurance Recoveries for climate-related claims paid for by the reinsurer for the insurance_class in the reported region, for the fiscal year. Reinsurance companies should use code “6” (“Aggregated LOB”, i.e., data not available by insurance_class) as per Appendix II – Insurance Classes to report the aggregated dollar amount of Reinsurance Recoveries for climate-related claims paid data.This field is applicable only to Reinsurance companies.
• total_insured_value – Report the sum of the dollar amounts of Total Insured Values on assets under coverage to insureds in the insurance_class in the reported region, net of deductible. This field should be completed by P&C insurance companies only.
• Report the following fields as blank on each row:
  • gross_pml_flood_1_100
  • gross_pml_wildfires_1_100
  • gross_pml_wind_1_100
  • gross_pml_hurricane_1_100
  • gross_pml_flood_1_250
  • gross_pml_wildfire_1_250
  • gross_pml_sev_convec_storm_1_250
  • gross_pml_hurricane_1_250
  • net_pml_flood_1_100
  • net_pml_wildfire_1_100
  • net_pml_sev_convec_storm_1_100
  • net_pml_hurricane_1_100
  • net_pml_flood_1_250
  • net_pml_wildfires_1_250
  • net_pml_sev_convec_storm_1_250
  • net_pml_hurricane_1_250

Sub-Table IC1-B: Probable Maximum Loss (PML) By Region (Canada and outside Canada)

Report on all data fields in the template per the instructions by submission key below for each row reported.

Sub-Table Field

• return_subtable – Set field value to ‘IC1-B’

Categorical Data Fields

• insurance_class – Report the defined insurance classification per table in Appendix II – Insurance Classes
• region – Report the applicable province or territory of Canada, Region of the USA and ‘Other’ geographic region per the table in Appendix III – Regions

Calculated Data Fields

• Report the following fields as blank on each row:
  • insurance_revenue
  • policy_count
  • claims_paid_flood
  • claims_paid_wildfire
  • claims_paid_hurricane
  • claims_paid_sev_convec_storm
  • reinsur_claims_paid
  • count_claims_paid_wildfire
  • count_claims_paid_flood
  • count_claims_paid_hurricane
  • count_claims_paid_sev_convec_storm
  • reinsur_count_paid
  • reinsur_recov_flood
  • reinsur_recov_wildfire
  • reinsur_recov_hurricane
  • reinsur_recov_sev_convec_storm
  • reinsur_recov
  • total_insured_value
• gross_pml_flood_1_100 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 100-year return period on Flood (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Flood.
• gross_pml_wildfires_1_100 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 100-year return period on Wildfire (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Wildfire.
• gross_pml_sev_convec_storm_1_100 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 100-year return period on Severe convective storms (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Severe convective storms.
• gross_pml_hurricane_1_100 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 100-year return period for Hurricanes (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for hurricanes.
• gross_pml_flood_1_250 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 250-year return period on Flood (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Flood.
• gross_pml_wildfires_1_250 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 250-year return period on Wildfire (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Wildfire.
• gross_pml_sev_convec_storm_1_250 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 250-year return period on Severe convective storms (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Severe convective storms.
• gross_pml_hurricane_1_250 – Report the Gross Probable Maximum Loss (PML) on an occurrence basis for a 250-year return period on Hurricanes (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for hurricanes.
• net_pml_flood_1_100 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 100-year return period on Flood (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Flood.
• net_pml_wildfires_1_100 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 100-year return period on Wildfire (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Wildfire.
• net_pml_sev_convec_storm_1_100 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 100-year return period on Severe convective storms (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Severe convective storms.
• net_pml_hurricane_1_100 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 100-year return period on Hurricanes (i.e., PML100) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML100 and region code ‘U6’ (‘USA-Other’) should address US-wide PML100 for Hurricanes.
• net_pml_flood_1_250 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 250-year return period on Flood (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Flood.
• net_pml_wildfires_1_250 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 250-year return period on Wildfire (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Wildfire.
• net_pml_sev_convec_storm_1_250 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 250-year return period on Severe convective storms (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Severe convective storms.
• net_pml_hurricane_1_250 – Report the Net Probable Maximum Loss (PML) on an occurrence basis, net of all applicable reinsurance, deductibles and co-insurance for a 250-year return period on Hurricanes (i.e., PML250) for each region by insurance_class. Optionally, if available, reporting on PML pertaining to region code ‘C1’ (‘Canada-Other’) should reflect Canada-Wide PML250 and region code ‘U6’ (‘USA-Other’) should address US-wide PML250 for Hurricanes.

Additional Reporting Guidance

The technical specifications document for the IC1 (OSFI 1002) return, that includes a template sheet, field definitions and reference tables is available at IC1 (OSFI 1002) Technical Specifications (XLSX, 59 KB). For a reference example of a completed template that contains an abbreviated listing of completed rows following the above template instructions, see the sample IC1 (OSFI 1002) Return template (CSV, 14 KB).

Instructions for the Transition Risk Return IC2 (OSFI 1003)

This return collects GHG Absolute Emissions assigned on Investments and other Balance Sheet Assets and entity-wide (unattributable) from insurers. It also collects Insurance-Associated GHG Emissions to assess the emissions footprint enabled by insurers' underwritten insurance businesses.

Overview of Return Data Fields

The following fields are included in the IC2 (OSFI 1003) Return templates:

Sub-Table Field

return_subtable

Categorical Data Fields

• asset_class
• insurance_class
• sector
• region
• credit_quality

Calculated Fields

• scope_1_insurer_own_absolute_emissions
• scope_2_insurer_own_absolute_emissions
• scope_3_insurer_own_absolute_emissions
• scope_1_counterparty_absolute_emissions
• scope_2_counterparty_absolute_emissions
• weighted_avg_scope_1_counterparty_data_quality_score
• weighted_avg_scope_2_counterparty_data_quality_score
• weighted_avg_data_counterparty_quality_score
• scope_1_policyholder_absolute_emissions
• scope_2_policyholder_absolute_emissions
• weighted_avg_scope_1_policyholder_data_quality_score
• weighted_avg_scope_2_policyholder_data_quality_score
• weighted_avg_policyholder_data_quality_score
• asset_balance
• weighted_average_maturity
• balance_5_maturity
• balance_10_maturity

The above template fields are to be reported by completing the template contained in the technical specifications provided at IC2 (OSFI 1003) Technical Specifications (XLSX, 59 KB), following the instructions below for reporting Absolute GHG emissions and other related metrics on transition risk in Canada and outside of Canada.

Field Applicability by Sub-Table

The fields applicable for each Sub-Table are outlined in the Field Applicability Matrices (See Link: Field Applicability Matrices document (XLSX, 80 KB)).

Sub-Table IC2-A: Entity-level Insurer’s Own GHG Emissions by Scope

Report emissions by scope, excluding Financed Emissions for Scope 3, using the instructions by submission key below.

Sub-Table Field

• return_subtable – Set field value to ‘IC2-A’ on each row reported

Categorical Data Fields

• asset_class – Set field value to code ‘10’ (‘Unattributable – GHG emissions unattributable to a specific asset’) for each row reported; reporting on other asset classes is not applicable for Sub-Table IC2-A (see Field Applicability by Sub-Table section above for details)
• insurance_class – Report as blank
• sector – Not applicable; Report as blank
• region – Report the applicable province or territory of Canada, Region of USA or ‘Other’ geographic region per the table in Appendix III – Regions
• credit_quality – Not applicable; Report as blank

Calculated Data Fields

• scope_1_insurer_own_absolute_emissions – Report the Insurer’s Own Absolute Scope 1 GHG Emissions (in tCO₂-Equivalent) produced within each reported region
• scope_2_insurer_own_absolute_emissions – Report the Insurer’s Own Absolute Scope 2 GHG Emissions (in tCO₂-Equivalent) within each reported region
• scope_3_insurer_own_absolute_emissions – Report the Insurer’s Own Absolute Scope 3 GHG Emissions (in tCO₂-Equivalent) within each reported region
• asset_balance – Report as blank
• weighted_average_maturity – Report as blank
• balance_5_maturity – Report as blank
• balance_10_maturity – Report as blank

Note: The “Insurer’s Own Absolute Emissions” could alternatively be termed as “Non-Financed GHG Emissions”, as per the “Key Terms and Definitions” above.

Sub-Table IC2-B: Financed GHG Emissions – Scope 3 by Asset Class

For purposes of reporting Scope 3 (Financed) Emissions, report on each row using the instructions by submission key below.

Sub-Table Field

• return_subtable – Set field value to ‘IC2-B’

Categorical Data Fields

• asset_class – Report on each of the defined asset classes (see the table in Appendix I - Asset Classes for reference). Do not report using the ‘Unattributable’ classification of the asset_class for reporting on Financed GHG Emissions. For each selection within the asset_class, certain categorical fields may be applicable (see Field Applicability by Sub-Table section above for reference).
• insurance_class – Report as blank
• sector – If applicable per the Field Applicability Matrices, report the applicable sector code for each assets per the table in Appendix I - Asset Classes; otherwise report the sector field as blank
• region – If applicable for the applicable asset_class per the Field Applicability Matrices, report the applicable province or territory of Canada, Region of USA or ‘Other’ geographic region per the table in Appendix III – Regions; otherwise report the region field as blank

• credit_quality – If applicable for the asset_class per the Field Applicability Matrices, report the applicable credit_quality code per the table in Appendix V – Credit Quality Ratings; otherwise, report the credit_quality field for the non-applicable rows as blank

Note: If an insurer has multiple assessments from multiple rating agencies, the insurer should disclose the credit ratings using guidance from OSFI’s MCT (see Chapter 6 section “6.1.1 - Use of ratings”) and LICAT (see Chapter 3 section “3.1.1 - Use of ratings”) guidelines.

Calculated Fields

• scope_1_counterparty_absolute_emissions – Report the applicable amount of the Insurer’s Counterparty Scope 1 Absolute GHG Financed emissions for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• scope_2_counterparty_absolute_emissions - Report the applicable amount of the Insurer’s Counterparty Scope 2 Absolute GHG Financed emissions for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• weighted_avg_scope_1_counterparty_data_quality_score – Report the PCAF Data quality score for the Insurer's Counterparty Total Absolute Emissions (Scope 1) weighted by outstanding amount for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• weighted_avg_scope_2_counterparty_data_quality_score – Report the PCAF Data quality score for the Insurer's Counterparty Total Absolute Emissions (Scope 2) weighted by outstanding amount for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• weighted_avg_counterparty_data_quality_score – Report the PCAF Data quality score for the Insurer's Counterparty Total Absolute Emissions (Scope 1) and (Scope 2) weighted by outstanding amount for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• asset_balance – Report the dollar amount of the applicable financial balance for each asset_class by each region category (if applicable) split by each sector category (if applicable) by each credit_quality category (if applicable).
• weighted_average_maturity – Report the applicable exposure weighted maturity, measured in years, for each asset_class split by each region category by each sector category (if applicable) by each credit_quality category (if applicable).
• balance_5_maturity – Report the dollar amount of the asset_balance with a remaining maturity of between 5 and 10 years.
• balance_10_maturity – Report the dollar amount of the asset_balance with a remaining maturity greater than 10 years.

Sub-Table IC2-C: Insurance-Associated GHG Emissions

For purposes of reporting Scope 3 (Insurance-Associated) Emissions by Insurance Classes, report on each row using the instructions by submission key below. Note that this Sub-Table is to be completed by insurers writing classes of insurance including personal automobile, commercial property and other commercial lines.

Sub-Table Field

• return_subtable – Set field value to ‘IC2-C’ on each row reported

Categorical Data Fields

• asset_class – Report as blank
• insurance_class – Report the applicable class of insurance code per Appendix II – Insurance Classes; for purposes of reporting on IC2-C, only include the following Insurance Classes: Personal Automobile, Commercial Property, Other Commercial Lines (do not report on ‘Personal Property’).
• sector – Report the applicable Sector code for each insurance_class per the table in Appendix IV – Sectors; for insurance_class code ‘1’ (‘Personal Automobile’), report the sector field as blank
• region – Report the applicable region for each insurance_class per the table in Appendix III - Regions
• credit_quality – Report as blank

Calculated Fields

• scope_1_policyholder_emissions – Report the applicable amount of the Insurer's Policyholder Scope 1 Absolute GHG Insurance-Associated Emissions for each applicable insurance_class (‘Personal Automobile’, ‘Commercial Property’, ‘Other Commercial Lines’) for each region by each sector.
• scope_2_policyholder_emissions – Report the applicable amount of the Insurer's Policyholder Scope 2 Absolute GHG Insurance-Associated Emissions for each applicable insurance_class (‘Personal Automobile’, ‘Commercial Property’, ‘Other Commercial Lines’) for each region by each sector.
• weighted_avg_scope 1_policyholder_data_quality_score – Report the PCAF Data quality score for the Insurer's Policyholder Total Absolute Emissions (Scope 1) weighted by outstanding amount for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• weighted_avg_scope 2_policyholder_data_quality_score – Report the PCAF Data quality score for the Insurer's Policyholder Total Absolute Emissions (Scope 2) weighted by outstanding amount for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• weighted_avg_policyholder_data_quality_score – Report the PCAF Data quality score for the Insurer's Policyholder Total Absolute Emissions (Scope 1) and (Scope 2) weighted by outstanding amount for each asset_class by each region category (if applicable) by each sector category (if applicable) by each credit_quality category (if applicable).
• Report the following fields as blank on each row:
  • asset_balance
  • weighted_average_maturity
  • balance_5_maturity
  • balance_10_maturity

Additional Reporting Guidance

The technical specifications document for the IC2 (OSFI 1003) return, that includes a template sheet, field definitions and reference tables is available at IC2 (OSFI 1003) Technical Specifications (XLSX, 59 KB). For a reference example of a completed template that contains an abbreviated listing of completed rows following the above IC2 (OSFI 1003) template instructions, see the sample IC2 (OSFI 1003) Return template (CSV, 7 KB).

Appendix I – Asset Classes

The coding selections for the Returns listed below reflect the investment security classifications on the Supervisory Quarterly Returns as follows:

• Life Insurance (LF2): Exhibit 21.012
• Mortgage Insurance (MI4): Exhibit 40.08
• Property & Casualty Insurance (PC2): Exhibit 40.08

Sub-Table IC2-A: Entity-level Insurer’s Own GHG Emissions by Scope

The following category is to be used for the asset_class field when completing the IC2-A Return.

The “Unattributable (i.e., GHG emissions unattributable to a specific asset)” asset class is to be used for reporting on entity-wide emissions in IC2 return sub-table 'IC2-A' only, and it is not intended to be used in lieu of reporting emissions by specific asset classes in IC2 return sub-table 'IC2-B'.

Report in the asset_class field using the codes shown below.

Sub-Table IC2-B: Financed GHG Emissions – Scope 3 by Asset Class (Canada and outside Canada)

The following asset classes are to be used for the asset_class field when completing the IC2-B Return.

Appendix II – Insurance Classes

IC1 (OSFI 1002) - Physical Risk Returns

The classes of insurance presented in the table below are to be used for purposes of reporting in the insurance_class categorical field for the following IC1 returns:

• Sub-Table IC1-A: Insurance Claim and Revenue Metrics by Region (Canada and outside Canada)
• Sub-Table IC1-B: Probable Maximum Loss (PML) by Region (Canada and outside Canada)

Report in the insurance_class field using the codes shown below.

insurance_class code ‘6’ ‘RE Aggregated Data - data not available by insurance_class’ is applicable only to Reinsurance companies.

IC2 (OSFI 1003) - Transition Risk Returns

The classes of insurance presented in the table below should be used to report the insurance_class categorical field for the Sub-Table IC2-C: Insurance-Associated GHG Emissions.

Report in the insurance_class field using the codes shown below.

The insurance classes in the table above have been reduced to three classes of insurance as the methodology for calculating Insurance-Associated GHG emissions (i.e., PCAF Standard Part C) only covered the "Commercial lines" and "Personal motor lines" when this document was developed.

Appendix III – Regions

The categorical codes shown in the table below are to be used for the region field when completing the IC1 (OSFI 1002) Return and the IC2 (OSFI 1003) Return. The name for each region, along with a Region Description that lists the constituent region(s) associated to each Region code are also listed in the table below. For example, the region code ‘US2’, described as ‘USA Midwest’ is constituted of a grouping of states of the USA including: ‘IA’, ‘IL’, ‘IN’, ‘KS’, ‘MI’, ‘MN’, ‘MO’, ‘ND’, ‘NE’, ‘OH’, ‘SD’, and ‘WI’.

Report in the region field using the codes shown below.

Appendix IV – Sectors

The coding selections shown in Table 1 below are to be used for the sector field when completing the IC2 Return.

Table 1 lists 25 Sectors, most of which are sensitive to the transition toward a low-carbon economy, starting with Sector codes ‘1’ (‘ELEC-RNEW - Electricity Production from Renewable Sources and Nuclear’) and ending with codes ‘25’ (‘OTHR’- ‘Other Industries).

Within the table, each sector code has a sector name, a sector description and the corresponding 2022 North American Industry Classification System (NAICS) code(s).

The sectorial assignment is based on “leading NAICS codes” which is defined as follows: if a NAICS code belongs to a sector, all the NAICS codes that start with the same digits also belong to that sector. For example, 111 is the NAICS code for Crop Production and therefore, all the NAICS codes that start with the digits 111 also belong to this sector, e.g., 1113 is the NAICS code for Fruit and Tree Nut Farming and belongs to the Crop Production sector.

Note that there are codes which are used for more than one sector, i.e., 213119 for EINT-MINE and COAL (for a complete list see Table 2 – NAICS codes with multiple sectors). This is because there is no further granularity available for these NAICS codes. Exposures to counterparties that are mapped to one of these NAICS codes would be classified to one of the sectors based on the nature of the counterparty.

Report the sector field using the codes shown below (Table 1).

Appendix V – Credit Quality Ratings

Externally-assigned ratings of long-term borrower creditworthiness are assigned on debt security issuers and wholesale borrowers including corporates, banks and sovereigns. To facilitate comparison, ratings from several recognized credit rating organizations should be mapped into the credit_quality categories shown in the table below.

For reporting purposes on the IC2 (OSFI 1003) return, investments should be grouped within each credit_quality category; borrowers are not to be reported on an individual name basis.

Report in the credit_quality field using the codes shown below.