Major insurance companies launch net zero climate alliance
MILAN, July 11 (Reuters) – Eight of the world’s largest insurance and reinsurance companies on Sunday launched an alliance to help accelerate the transition to a net zero emissions economy.
The companies, which include the top three European insurers in terms of premiums – Allianz (ALVG.DE), AXA (AXAF.PA) and Generali (GASI.MI) – said the Net-Zero Insurance Alliance (NZIA) is strive to shift underwriting portfolios towards zero net greenhouse gas emissions by 2050.
The move comes as insurers come under increasing pressure to explain how they plan to decarbonize their businesses amid growing calls to stop underwriting and investing in fossil fuel projects. Read more
Each of the companies will individually set milestones every five years and report on progress each year in cooperation with competition authorities, NZIA members said in a statement.
“With this new Net-Zero insurance alliance, we are further enhancing our climate ambition,” said Thomas Buberl, CEO of AXA Group, who chairs NZIA.
NZIA members, which also include Aviva (AV.L), Munich Re (MUVGn.DE), SCOR (SCOR.PA), Swiss Re (SRENH.S) and Zurich Insurance Group (ZURN.S), will define the subscription criteria for the most carbon-intensive activities in their subscription portfolios and offer solutions for low-emission and zero-emission technologies.
They will also include net zero risk and decarbonization criteria in their risk management frameworks.
“By committing to join the standard-gold alliance for net zero, the (NZIA) will ultimately make the subscription subordinate to the underlying companies with credible net zero transition strategies,” the UN envoy said. for the climate, Mark Carney.
The Alliance, first defined in April, was presented by Generali CEO Philippe Donnet at the G20 climate summit in Venice on Sunday.
Many of the major European insurers have already adopted climate-friendly policies. Last month, Generali pledged to achieve carbon neutrality in its direct investment portfolio by 2050. read more
Reporting by Stephen Jewkes Editing by David Goodman and Jane Merriman