A public consultation period for Version 1.0 of the Net-Zero Insurance Alliance (NZIA) Target Setting Protocol has been launched.
The Alliance has described it as the first of its kind for re/insurance underwriting portfolios. The Protocol outlines NZIA’s recommended approach to target-setting and reporting, as well as how it is expected to evolve in the future.
According to the announcement, the public consultation process is an opportunity for the wider insurance industry and key stakeholders to provide feedback on this Version 1.0 of the Protocol.
The final Version 1.0 of the NZIA Target Setting Protocol will be launched in January 2023. Existing NZIA members, NZIA added, will then set and disclose their initial targets by July 2023.
NZIA said: “Version 1.0 of the Protocol will enable NZIA members to begin to independently set science-based, interim decarbonisation targets for their respective insurance and reinsurance underwriting portfolios in line with a net-zero transition pathway that would limit global warming this century to 1.5° C.”
In addition, the Protocolo builds on the upcoming launch of the first-ever global accounting standard to measure greenhouse gas emissions associated to insurance portfolios (“insurance-associated emissions”), according to NZIA.
The former was developed by the Partnership for Carbon Accounting Financials (PCAF) in collaboration with the NZIA.