NZIA launches Target-setting Protocol

Written by Adam Cadle

17/01/2023

The United Nations-convened Net-Zero Insurance Alliance (NZIA) has launched the Alliance’s first Target-Setting Protocol at the World Economic Forum’s annual meeting in Davis, Switzerland.

Version 1.0 of the NZIA Target-Setting Protocol will enable NZIA members to begin to independently set science-based, intermediate targets for their respective insurance and reinsurance underwriting portfolios in line with a net-zero transition pathway consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. With the launch of the protocol, existing NZIA members are required to set and disclose their initial target(s) by 31 July 2023.

“The NZIA’s first Target-Setting Protocol is a landmark breakthrough,” NZIA chair and AXA group chief risk officer Renaud Guidée said.

“For the first time ever, insurance and reinsurance companies among the largest globally have built a framework and measurement tools to assess the impact of their activities on climate change. The NZIA’s Target-Setting Protocol will serve as a catalyst to set unprecedented and ambitious targets towards net-zero.”

The protocol builds on the launch of the first-ever global accounting standard to measure greenhouse gas emissions associated with insurance underwriting portfolios developed by the Partnership for Carbon Accounting Financials (PCAF) in collaboration with the NZIA.

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