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Net zero re/insurers commit to further climate targets

28th January 2022 - Author: Matt Sheehan

Insurers and reinsurers forming part of the UN-Convened Net-Zero Asset Owner Alliance have committed to a further set of climate targets that aim to reduce the impact of global warming.

financial-climate-riskThe Alliance is formed of 69 asset owner members, including Swiss Re, Munich Re, SCOR, Zurich, AXA, QBE, Generali, L&G and Aviva.

The new guidance states that the decarbonization range for absolute portfolio emissions reductions from 2020 to 2025 should range between 22% to 32%. To date, 30 members have already set 2025 targets.

Additionally, emissions reductions for the period 2020 to 2030 should range between 49% to 65% or beyond, following the same approach.

This extends the ambition of the original targets of the Alliance, published January 2021, which it says reflects the speed at which all parts of the economy need to decarbonize.

“This advanced guidance will help investors already committed to net-zero to take the urgent shorter-term action that climate science demands,” said Guenther Thallinger, Board Member Allianz SE & Chair of the Net-Zero Asset Owner Alliance.

“Where the first edition of this Protocol focused on 2020 to 2025, today’s ambition towards 2030 stresses the need for powerful, credible and rapid action to achieve a net-zero emissions world,” Thallinger continued.

“Action is needed now, and every company is challenged to follow the lead of Alliance members and adjust business models, develop plans for the transition to a low-carbon, climate-resilient future, and then implement those plans.

In addition to new portfolio emissions reduction targets, re/insurers in the Alliance have agreed to expand their scrutiny over assets classes and sub-portfolio targets.

Likewise, asset managers have been called on to publicly commit to supporting the transition and moreover, to commit their entire portfolios to 1.5°C degree alignment and net-zero by 2050.

In a statement, French reinsurer SCOR said: “SCOR is proud to have contributed to the second edition of the UN-Convened Net-Zero Asset Owner Alliance’s Target Setting Protocol, together with the 68 other institutional investors who make up the Alliance.”

“The science-based pathways in this second Protocol provide new guidance on setting decarbonation targets by 2030 to keep global warming to 1.5°C.”

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