The Net-Zero Insurance Alliance (NZIA), a global climate group for insurers convened by the United Nations, has amended the rules for its members to set or unveil targets to reduce greenhouse gas emissions amid an exodus of the member companies.
According to the new rules, individual members will now be in charge of and be publicly answerable for any targets they set.
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They will also be responsible for the methods used to set the targets, the timeframe to publish them, and the progress made in achieving those targets.
In a statement, NZIA said: “As before, NZIA members who publish their own decarbonisation targets and timelines do so unilaterally and independently.
“The NZIA Target-Setting Protocol will serve as a voluntary best practice guide to aid in the accurate measurement, standardisation, and comparability of science-based decarbonisation targets for insurance and reinsurance underwriting portfolios and to enhance overall transparency and accountability across the insurance industry on climate action.”
The number of NZIA members reduced from 30 to 12 after key companies such as AXA, Allianz and Tokio Marine left the alliance.
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By GlobalDataBoth members and non-members of the coalition said they are committed to achieving net zero by 2050, with a plan for publishing emission targets independently and providing information on their progress.
In May 2023, Reuters reported that many members were leaving NZIA after some US Republicans accused the coalition of breaching antitrust laws.
The breach could occur when the group works collectively to reduce the carbon emissions goals of their clients.
Furthermore, a letter sent by the attorneys general from 23 US states led by Republicans threatening a legal course of action has pushed more than 50% of NZIA’s members to leave the alliance.
