Eight firms commit to the ‘Net-Zero Insurance Alliance’
The “Net-Zero Insurance Alliance” (NZIA) was launched on Sunday 11 July at the G20 climate summit in Venice. Axa (Renaud Guidée, Axa’s head risk manager chairs the NZIA), Generali, Allianz, Aviva, Munich Re, Scor, Swiss Re and Zurich Insurance Group “stated a historic commitment to play their role in accelerating the transition towards a zero net emission global economy,” the press release said.
The eight insurance and reinsurance companies pledge to reduce to zero the net emissions of their insurance and reinsurance subscription portfolios by 2050 in compliance with the 1.5°C upper limit in temperatures set by the Paris Agreement on climate change. Each member will determine on an individual basis every five years its intermediate targets based on scientific criteria and will publicly and annually announce the progress it has made in meeting those targets.
At first, the NZIA will develop tools and a methodology for measuring the carbon footprint of its insurance portfolios. With these measures, the insurance companies hope to be able to better assist customers in their transition (...) “For example, in their subscription activity NZIA members individual could plan structural programmes to encourage green activities such as the use of renewable energies or clean vehicles. The members can also apply the principles of the circular economy to managing claims, for example in preferring the use of recycled spare parts or green materials for building reconstruction. There is an alignment of interests there, as that also leads to lower costs for customers,” Guidée said on Axa’s website.
NZIA is on the verge of joining the United Nations’ “Zero Objective” campaign in order to be an official stakeholder in the Glasgow Financial Alliance for Net Zero (GFANZ), an alliance of financial system players that take first-tier initiatives in favour de zero net emissions. Several insurance companies are also taking part in the Net-Zero Asset Owner Alliance (NZAOA) to align investment portfolios on the carbon neutrality trajectory.
To limit the increase in the average temperature worldwide to 1.5°C by 2100, the Intergovernmental Panel on Climate Change (IPCC) estimates that net CO2 emissions must fall to zero by 2050, i.e., the difference between the quantity of CO2 emitted and the quantity of atmospheric CO2 absorbed must be equal to zero by then.