Eight insurance and reinsurance firms have launched Net-Zero Insurance (NZIA) Alliance to help transition towards a net-zero emissions economy.
The NZIA is convened by UN Environment Programme Finance Initiative.
The companies would work to transition their underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050.
All the NZIA members will individually set science-based intermediate targets every five years and independently report on their progress publicly on an annual basis.
UN Special Envoy on Climate Action & Finance Mark Carney said: “By committing to join the gold standard alliance for net-zero, the Net-Zero Insurance Alliance will ultimately make underwriting contingent on underlying companies having credible net-zero transition strategies.”
AXA Group CEO Thomas Buberl said: “With this new Net-Zero Insurance Alliance, we are raising our climate ambition further by using our underwriting, claims, and risk management practices to help ensure and enable the transition to a resilient net-zero global economy.”
Furthermore, NZIA has committed to join the Glasgow Financial Alliance for Net-Zero (GFANZ) and the UN Race to Zero.
GFANZ is a forum bringing together net-zero initiatives across the financial sector to speed up the transition of the financial sector by 2050.