Net-Zero Insurance Alliance Scraps Emissions Target-Setting Rules

Following a major u-tuen, the Net-Zero Insurance Alliance (NZIA) has diluted all requirements for members to set or publish greenhouse gas emission-reduction targets.

In the wake of an exodus of major global insurance groups from the grouping, in a statement, the NZIA said: “Going forward, NZIA member companies have no obligation to set or publish targets: rather, individual member companies will be responsible and publicly accountable for any targets they set, the methodologies used to set them, the timeline on which they decide to publish any targets, and the progress they are making.”

“As before, NZIA members who publish their own decarbonisation targets and timelines do so unilaterally and independently.”

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In addition, the NZIA said that the “Target-Setting Protocol” will serve as a voluntary best practice guide to aid in the accurate measurement, standardisation, and comparability of science-based decarbonisation targets for insurance and reinsurance underwriting portfolios and to enhance overall transparency and accountability across the insurance industry on climate action.

Whether NZIA members or not the NZIA stressed that insurance market participants may, and are encouraged by UNEP, to use the NZIA Target-Setting Protocol and the methodologies it outlines, which aid the measurement, standardisation, and comparability of science-based decarbonisation targets for their respective insurance and reinsurance underwriting portfolios in line with a net-zero transition pathway.

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UNEP said it is fully committed to strengthening and deepening its collaborative work with the insurance industry and key stakeholders to advance net-zero insurance thinking and practices globally in order to speed and scale up the transition to a net-zero economy.

NZIA added its members remain committed to the net-zero transition and are engaging with a broader community of stakeholders on the future evolution of the NZIA.