IAG has joined the United Nations-convened Net-Zero Insurance Alliance as part of its overall commitment to achieving net zero.
The insurer joins 28 other leading insurance companies worldwide, representing just under 15 per cent of the world’s premium volume.
NZIA members aim to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050, consistent with a maximum global temperature rise of 1.5°C above pre-industrial levels by 2100, in alignment with the Paris Agreement on Climate Change.
IAG New Zealand CEO Amanda Whiting said: “As New Zealand’s largest general insurer, with a relationship with one in every two New Zealand households, we see first-hand the impact of climate change through changing weather patterns and weather events on our customers and their communities.
“As a business, we are committed to reaching net zero by 2050. We are excited to join the Net-Zero Insurance Alliance and be involved in developing the methodologies and strategies to achieve this through our underwriting portfolio and work towards a net-zero future.”
The move follows the Driving to Zero focus area outlined in IAG’s Climate and Disaster Resilience Action Plan. The insurer committed to using its underwriting and investment approach to drive net-zero emissions.
IAG has a target of achieving net-zero emissions by 2050 across its value chain, with an intermediate target of a 50% reduction in emissions by 2030.
As no methodology currently exists to measure and disclose net zero Scope 3 emissions relating to customers’ insured assets, by participating in the NZIA, IAG will work with the world’s leading insurers to develop industry-appropriate methodologies and strategies to support a just transition to net zero.
IAG has been a carbon neutral business in relation to its Scope 1 and 2 emissions since 2012, and it has intermediate targets to align its investment portfolio to net-zero emissions by 2050.
