The Insurance sector adopts a Decarbonisation ‘Road Map’.
The Net Zero Insurance Alliance (NZIA) an agreement between major Global Insurance companies signed within the UN framework, published the first Protocol in defining objectives for a Low-Carbon Economy on the occasion of the annual meeting of the World Economic Forum in Davos Switzerland.
The Alliance , launched by eight of the world’s leading Insurers and Reinsurers during the 2021 G20 climate summit in Venice, has grown to 29 members representing around 15% of Global premium volume.
The Insurance Industry has an important role to play in the transition towards a Zero emissions Global Economy by supporting its customers as it undertakes concrete action to achieve that goal.
Members of NZIA actually intend to set their Insurance and Reinsurance underwriting targets in an Independent, Science-Based way, orienting their Portfolios in line with a transition path towards a productive system with a maximum temperature rise of 1.5°C by 2100. These objectives must be set and disclosed by 31 July 2023.
The Protocol is in fact based on the launch of the first calculable Global Accounting Standard to measure Greenhouse Gas Emissions associated with Insurance Portfolios, developed by the Partnership for Carbon Accounting Financials in collaboration with the NZIA. The document particularly outlines five types of objectives within three macro categories concerning: The Reduction of Emissions; The Commitment to Net Zero; and The Assurance of the transition.