Global insurance/reinsurance leaders establish alliance to accelerate transition to net-zero emissions economy

Written by Adam Cadle

12/07/2021

Eight of the world’s leading insurers and reinsurers have established the UN-convened Net-Zero Insurance Alliance (NZIA) as founding members, committing to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050.

AXA (NZIA chair), Allianz, Aviva, Generali, Munich Re, SCOR, Swiss Re and Zurich Insurance Group will individually set science-based intermediate targets every five years and independently report on their progress publicly and annually to contribute to achieving the goals of the Paris Climate Agreement, in cooperation with the respective competition authorities.

All eight NZIA founding members are part of the UN-convened Net-Zero Asset Owner Alliance (NZAOA) established in 2019, where they are already individually setting science-based 2025 decarbonisation targets for their respective investment portfolios in line with a net-zero transition pathway. The NZIA has also committed to join the Glasgow Financial Alliance for Net Zero (GFANZ). Chaired by Mark Carney, UN Special Envoy on Climate Action and Finance, GFANZ brings together the leading net-zero financial alliances within the UN’s Race to Zero campaign, representing over $88trn assets, to work together to accelerate the transition of the financial sector and the global economy to net-zero emissions.

For generations, the insurance industry has served as society’s early warning system and risk manager by understanding, reducing, pricing and carrying risk. As the COP26 in Glasgow approaches, the risks posed by global heating are escalating and the world is a long way from meeting the promises made when the Paris Climate Agreement was forged nearly six years ago,” Inger Andersen, executive director of the UN Environment Programme (UNEP), said.

“Along with governments, the insurance industry and wider financial sector have the power and responsibility to drive progress towards a net-zero economy and a sustainable future for all. Guided by science, I am pleased to see leading insurers embed the net-zero ambition in their core insurance business. I urge the rest of the global insurance industry to respond to the climate emergency and urgently follow the example set by the founding members of this pioneering alliance.”

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