The Insurance Council of Australia (ICA) says in the first annual update on its climate change roadmap that more than 85% of members surveyed have set organisation-wide net zero targets by 2050 or earlier, and more than 60% have also set interim targets. 

ICA says it will continue advocating on behalf of members and their customers for policy settings that accelerate Australia’s transition to net zero, and the roadmap survey shows insurers are investing in renewable energy and efficiency and are working with communities to build resilience. 

“Our members are taking decisive action to address worsening extreme weather driven by a change climate, as well as building a more resilient future for all Australians,” CEO Andrew Hall said. “The updated roadmap will help us achieve our net zero targets.”  

The roadmap, launched at the ICA annual conference in Sydney last November, outlines pathways for insurers to achieve emission reductions. Annual updates will be provided and the roadmap itself will be revised regularly to reflect latest science and solutions. 

This year a cross-section of ICA members in the net-zero working group and climate change action committee, representing a total of more than $48 billion in gross written premium, were surveyed on their responses to the document

“Insurance Council member organisations have made substantial progress in implementing its best practice recommendations to cut emissions this decade, set targets to achieve net-zero by 2030 for their operations, and work towards achieving net-zero across their investments, supply chain and underwriting no later than 2050,” the report says.  

Findings from the survey also include that more than 45% have set targets to achieve net-zero emissions across their underwriting portfolios, with more than 15% planning to set a target by 2025.  

More than 55% have committed to a net-zero investment portfolio by 2050, with a further 20% planning to set a target by 2025. 

“Already more than half of respondents are incorporating climate considerations into their investments  and are developing baselines to track and report on their carbon intensity,” the update says. “Almost two-thirds of respondents are funding climate-positive economic activity, such as renewable energy.” 

Mr Hall says the ICA this year has ramped up support for members, including holding a roundtable on the roadmap with Assistant Minister for Climate Change and Energy Jenny McAllister and holding monthly webinars. 

The roadmap recently won the Sustainability Award, judged by 26 panellists across the industry globally and audited by KPMG, at the 27th Asia Insurance Industry Awards, ICA says.