The Net-Zero Insurance Alliance was launched and convened by the UN Environment Programme, two years ago. Since then the NZIA and its partners have developed the foundational concepts and frameworks to support its members as they work towards decarbonising their insurance and reinsurance underwriting portfolios.
These include the NZIA statement of commitment, the NZIA white paper on net-zero insurance, the PCAF Insurance-Associated Emissions Standard, and the NZIA Target-Setting Protocol.
Companies that choose to be a member of the NZIA, can unilaterally and independently decide on the steps towards net zero. NZIA membership does not involve any coordinated competitive conduct or exchanges of competitively sensitive information. NZIA provides a range of methodology options to support individual NZIA members’ progress towards their own net-zero commitments.
In the future, NZIA member companies have no obligation to set or publish targets. The individual member companies will be privately responsible and publicly accountable for the targets set by them. The companies will also be responsible for the methodologies used to set these targets, the timeline on which they decide to publish any targets, and the progress they are making.
NZIA members who now publish decarbonisation targets and timelines do so unilaterally and independently.
The NZIA Target-Setting Protocol will serve as a voluntary practice guide to aid in the accurate measurement, standardisation, and comparability of science-based decarbonisation targets for underwriting portfolios and to enhance overall transparency and accountability across the re/insurance industry on climate action.
Insurance market participants despite not being members are encouraged by UNEP, to use the NZIA Target-Setting Protocol and the methodologies it outlines.
UNEP has shown full commitment to strengthening and deepening its collaborative work with the insurance industry and key stakeholders to advance net-zero insurance thinking and practices globally in order to speed and scale up the transition to a net-zero economy.
