As part of its overall commitment, IAG, Australia and New Zealand’s largest general insurer, has joined the United Nations convened Net-Zero Insurance Alliance (NZIA).
Joining the NZIA supports IAG’s Driving to Zero focus area outlined in its Climate and Disaster Resilience Action Plan.
In alignment with the Paris Agreement on Climate Change, NZIA members aim to transition their re/insurance underwriting portfolios to net-zero greenhouse gas emissions by 2050, consistent with a maximum global temperature rise of 1.5°C above pre-industrial levels by 2100.
According to IAG, the insurer has a specific target of achieving net-zero emissions by 2050 across its value chain, with an intermediate target of a 50% reduction in emissions by 2030.
By participating in the NZIA, IAG will work with the world’s leading insurers to develop industry-appropriate methodologies and strategies to support a just transition to net zero.
IAG Managing Director and CEO Nick Hawkins said: “Weather and climate are core business for IAG. For nearly two decades, we have worked to understand climate change, its impacts on our business, and the ways we can help reduce climate risk for our customers and the impacts on communities.
“As a business we are committed to reaching net zero by 2050. We are excited to join the Net-Zero Insurance Alliance and be involved in developing the methodologies and strategies to achieve this through our underwriting portfolio and work towards a net-zero future.”
IAG has been a carbon neutral business in relation to its Scope 1 and 2 emissions since 2012, and it has intermediate targets to align its investment portfolio to net-zero emissions by 2050.
There is currently no methodology to measure and disclose net zero Scope 3 emissions relating to customers’ insured assets, IAG noted.
As a NZIA member, IAG – and its brands NRMA Insurance, CGU, AMI, State and NZ – joins 28 other leading insurers globally, representing close to 15% of the world’s premium volume, according to the announcement.