IAG has outlined a series of actions it will take to help address climate change, including holding senior managers accountable.

Its five-point plan involves leadership “from the top”, preparing and involving employees, reducing emissions, aligning investments with climate objectives and “rethinking” risk.

“Our climate action plan sets out the framework and, importantly, commitment and steps to address this important and complex issue that requires immediate and ongoing action to mitigate its worst effects,” CEO Peter Harmer said.

“Underpinning this action plan is the primary objective identified in the Paris Agreement – to limit global climate change to two degrees of global warming above pre-industrial levels.

“Our plan incorporates a range of responses to this objective, across all aspects of our business. We will continue to embed consideration of climate change into our systems and how we work, and equip our people to understand the relevant issues and take action.”

IAG has been carbon neutral since 2012 and reduced its carbon emissions by almost 25% since 2015. But there is room to do more, Mr Harmer says.

“We know we can play a part but don’t have all the answers, and are committed to partnering with others to address this macro-societal challenge.”

An IAG spokesman told insuranceNEWS.com.au that there are "elements within the plan that can be aligned with specific business units, and therefore will be part of the overall performance assessment of the applicable senior leader".

"We recognise that IAG needs to play a role in climate change adaptation as well as reducing the emissions that are driving it," the spokesman said.