NZIA an “Empty Shell” as it Scraps Emissions Target-setting Rules

NZIA members are no longer required to set or publish GHG emissions reduction targets.

Members of the Net-Zero Insurance Alliance (NZIA) are no longer required to set or publish greenhouse gas (GHG) emissions reduction targets, following a major re-write of the alliance’s rules this week.

The change comes following pressure from the anti-ESG campaign in the US, prompting the mass exodus of over half of the NZIA’s members in recent months.

NZIA members will be individually responsible and publicly accountable for any targets they set, the methodologies they use to set them, and the timeline they use to disclose targets and progress, the United Nations Environment Programme (UNEP) said in its statement.

Members will still be encouraged to use the alliance’s target-setting protocol and methodologies as a voluntary best practice guide.

“NZIA membership does not involve any coordinated competitive conduct or exchanges of competitively sensitive information,” UNEP added.

NZIA members are engaging with a broader community of stakeholders on the future evolution of the alliance.

Peter Bosshard, Coordinator of the Insure Our Future campaign, said: “It is unfortunate that UNEP caves to the fossil fuel lobby and abolishes the last material requirement which NZIA have to fulfil.”

“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.”

Read more articles like this on Regulation Asia’s sister publication, ESG Investor.

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