COP26 will see the official launch of the Net-Zero Insurance Alliance (NZIA), which is geared towards bringing industry initiatives under one umbrella to help ensure that frameworks are consistent across industries and geographies.
The initiative was created as part of the Glasgow Financial Alliance for Net Zero (GFANZ) with a goal of building on the UN Environment Programme Finance Initiative’s Principles for Sustainable Insurance.
The NZIA is chaired by Axa, with Allianz, Aviva, Munich Re, Scor, Swiss Re and Zurich announced as founder members in a soft launch in April this year.
Generali and Hannover Re have since also revealed they are joining the initiative, alongside American Hellenic Hull, Icea Lion Group (the alliance’s first African member), NN Group and Shinhan Life (the first Asian member).
On the eve of the COP26 talks, Lloyd’s became the latest member of the NZIA, with CEO John Neal stating that the Corporation was “fully committed to working collaboratively across the financial sector to achieve its net-zero ambition”.
The addition of Lloyd’s takes the alliance closer to its goal of bringing industry initiatives under one umbrella, although at this stage there remains a notable absence of members among major North American insurers.
As members of GFANZ, which is chaired by UN climate envoy and former Bank of England governor Mark Carney, the NZIA signatories are part of an alliance of financial services groups responsible for more than $90trn of assets.
GFANZ issued a call to action to governments ahead of COP26 to introduce a series of measures to facilitate the transition towards net zero.
The alliance called on governments to commit to five specific steps to help unlock trillions of dollars required for the transition to a net-zero future.
GFANZ has called on government to commit to five steps for COP26
Set economy-wide net-zero targets for 2050 or earlier
Green the multilateral and international financial architecture to deliver net zero
Commit to pricing the externalities of carbon emissions
Create incentives to help people, businesses and communities go green
Mobilise capital flows to emerging markets and developing countries