Dropping the obligation to set emission reduction targets will turn the NZIA into an empty shell
In a statement published on July 5, UNEP announced that the Net Zero Insurance Alliance (NZIA) will no longer require its members to set and publish targets for reducing their insured emissions (1). This will reduce the NZIA to another industry talk-shop and an empty shell.
In its response, the Insure Our Future campaign notes that the NZIA’s target setting protocol doesn’t violate any anti-trust laws and that the attacks of the US fossil fuel lobby on the Alliance have no legal merit.
“It is unfortunate that UNEP caves to the fossil fuel lobby and abolishes the last material requirement which NZIA members have to fulfill. This reduces the Alliance to an empty shell and opens the door for further net zero greenwashing by the insurance industry.”
With the collapse of the NZIA, regulators need to step up and create a level playing field within the insurance industry by requiring all insurance companies to adopt science-based transition plans. The International Association of Insurance Supervisors (IAIS) should integrate this requirement into its Insurance Core Principles and put the topic on the agenda when it convenes for its annual meeting in Tokyo in November.
In the meantime, the Insure Our Future campaign will continue to hold insurance companies to account for their net zero commitments, including their commitments to set, publish and implement science based targets for reducing their insured emissions.