IAG, which encompasses New Zealand general insurance brands AMI, State and NZI, has joined the United Nations-convened Net-Zero Insurance Alliance (NZIA) as part of its overall commitment to achieving net-zero emissions.
By becoming a member of NZIA, IAG joins 28 other insurers worldwide, representing just under 15% of global premium volume.
According to IAG, NZIA members aim to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050. This is consistent with a maximum global temperature rise of 1.5°C above pre-industrial levels by 2100, as stated in the Paris Agreement on Climate Change.
“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,” said Amanda Whiting, IAG New Zealand CEO. “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.”
IAG’s joining NZIA aligns with the insurer’s Driving to Zero focus area outlined in its Climate and Disaster Resilience Action Plan, which states its commitment to direct its underwriting and investment approach to drive net-zero emissions. Within this focus area, IAG is targeting to achieve net-zero emissions by 2050 across its value chain, with an intermediate target of a 50% reduction in emissions by 2030.
Due to the lack of an existing methodology to measure and disclose net-zero Scope 3 emissions relating to customers’ insured assets, IAG said that, by participating in the NZIA, it will work with leading insurers worldwide to develop industry-appropriate methodologies and strategies to support a just transition to net zero.
According to IAG, it has been a carbon-neutral business with regard to Scope 1 and 2 emissions since 2012, and it has intermediate targets to align its investment portfolio to net-zero emissions by 2050.