Two insiders have revealed that the remaining insurers in the United Nations-backed Net-Zero Insurance Alliance (NZIA) are planning to relax the alliance’s membership requirements following the departure of several members, as reported by Reuters on July 4. The NZIA, launched in 2021 to support insurers in achieving net-zero emissions by 2050, is expected to eliminate the six-month deadline for publishing greenhouse gas emissions targets and introduce other changes to make membership less strict. The aim is to stabilize the alliance and provide an opportunity for former members to reconsider joining in the future.

The NZIA has lost over half of its members, including AXA [CS:FP], Lloyd’s of London, and Tokio Marine [8766:JP], due to concerns raised by attorneys general from Republican-led U.S. states. The attorneys general argued that the alliance’s requirements and actions infringed antitrust laws and increased costs for consumers. Despite concerns from environmental campaigners, the remaining members of the NZIA, including Aviva [AV/:LN], Generali [G:IM], and Shinhan Life [SHILIZ:KS], are seeking a modified approach to avoid simultaneous publication of targets and potential accusations of anti-competitive collaboration. The proposals are still under discussion, and it remains uncertain how the alliance will address insurers that delay publishing their targets. Insurers within and outside the NZIA remain committed to their net-zero goals, but concerns about regulatory and litigation risks, particularly in the U.S., have led to some companies leaving the coalition. However, the remaining members believe that the NZIA still plays a crucial role and highlight the methodologies it developed for assessing and reporting underwriting-related emissions.

Sources:

https://www.reuters.com/sustainability/insurers-look-ease-un-climate-alliance-rules-after-member-exodus-sources-2023-07-04/