IAG welcomes the launch of the NZIA Target-Setting Protocol (the Protocol), which provides a framework for members to independently set and report on net zero targets related to Scope 3 emissions*.
The Protocol provides guidelines for members to set intermediate science-based targets to transition insurance and reinsurance underwriting portfolios to net-zero emissions by 2050 to help keep temperature rise to a maximum of 1.5°C above pre-industrial levels by 2100. This aligns to the Paris Agreement on climate change.
Specifically, NZIA (and the Protocol) is focused on addressing Scope 3 Insurance Associated Emissions, which are the emissions generated by policyholders through their insured assets – whether that’s their home, car or business. As an example, Scope 3 emissions in underwriting include the emissions involved in not only the use of a house or a car, but also the creation of materials used to repair a house or car.
As one of the 29 members of the UN-convened NZIA, IAG aims to disclose its first target within the next six months. This target will build on IAG’s existing climate commitments outlined in its Climate and Disaster Resilience Action Plan and Net Zero Roadmap.
IAG Chief Underwriting Officer Darren Maher who was involved in the working groups that contributed to the Protocol said: “We’re proud to have contributed to the development of the Protocol to provide a framework for NZIA members to set and report on their net zero goals.
“We’re already looking at how the Protocol can support our Net Zero Roadmap actions to reduce emissions across our insurance portfolios,” Mr Maher said.
IAG has been a carbon neutral business in relation to its Scope 1 and 2 emissions since 2012. Where it has been able to measure Scope 3 emissions, IAG has also achieved carbon neutrality for these measured emissions. In addition, IAG has intermediate targets to align its investment portfolio to net-zero emissions by 2050.
The Protocol outlines five target types within three target categories from which NZIA members each independently set at least one of the five target types by 31 July 2023, and at least one target type in each of the three target types by 31 July 2024. For more information on the Protocol visit www.unepfi.org/industries/insurance/nzia-target-setting-protocol-version-1-0/
* Scope 3 emissions are indirect greenhouse gas emissions that occur in a company’s value chain.
