IAG has signed up to the United Nations convened Net-Zero Insurance Alliance (NZIA), backed by almost 30 insurers globally which collectively represent 15% of the world’s premium volume.

NZIA members aim to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050 – consistent with the Paris Agreement on Climate Change.

Eight insurers and reinsurers established the NZIA a year ago in the belief the global insurance industry can play a key role in accelerating the transition.

The founding members were Axa (Chair), Allianz, Aviva, Generali, Munich Re, SCOR, Swiss Re and Zurich. QBE signed up in February and Lloyd’s in November.

IAG MD and CEO Nick Hawkins says weather and climate are “core business” and the insurer is committed to reaching net zero by 2050, with an intermediate target of halving emissions by 2030.

“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,” he said.

“For nearly two decades, we have worked to understand climate change, its impacts on our business, and the ways we can help reduce climate risk for our customers.”

No methodology currently exists to measure and disclose “Scope 3” emissions related to customers’ insured assets, and IAG says by participating in the NZIA it will work with top insurers on addressing such issues. Scope 3 emissions are those produced by activity along a value chain, not by the company itself or its assets.

IAG says it has been carbon neutral in relation to its Scope 1 and 2 emissions since 2012. Its brand NRMA Insurance recently launched a Carbon Offset Program aimed at mitigating the impact of emissions from vehicles, with customer offset payments to fund bush regeneration, renewable energy and rainforest protection.

UN High-level Climate Action Champion Nigel Topping has said insurance will be “absolutely critical” to building resilience to climate shocks and industry collaboration will be essential to achieving real outcomes.

The NZIA is also backed by Achmea, American Hellenic Hull, ASR, Beazley, CA Assurances, Fidelis, Catalano Occidente, Hanover Re, ICEA Lion, Intesa Sanpaolo Vita, Mapfre, Matmut, MS & AD Insurance Group, NN Group, Shinhan Life, Sompo and Tokyo Marine Holdings.

Lloyd’s has committed to transitioning its Central Fund to net zero by 2050 by redirecting capital flows to green investments, and to assisting all market participants to reach a net zero underwriting position.