Net-Zero Insurance Alliance’s target-setting protocol is a frustrating step backwards

The Net-Zero Insurance Alliance (NZIA) released its first Target-Setting Protocol on January 17, 2023. Reclaim Finance argues the protocol is a 'step backward' compared to other GFANZ alliances and IPCC guidelines. Key criticisms include a low minimum emission reduction target of 34% CO2e by 2030, the failure to explicitly address fossil fuel expansion, and the exclusion of treaty reinsurance and certain construction insurance from its scope. While the document notes the positive exclusion of carbon offsets from targets, it calls for the NZIA to accelerate its protocol update from late 2024 to the end of 2023.

• The NZIA Target-Setting Protocol is criticized for a lack of urgency and ambition, allowing members to delay setting comprehensive targets across all categories—including emission reductions—until July 2024, with initial targets in only one category due by July 2023.
• The protocol's minimum emission reduction requirement of 34% for CO2-equivalent in underwriting portfolios is deemed insufficient when compared to the IPCC's Sixth Assessment Report, which specifies a 45% cut in CO2e and a 50% cut in CO2 between 2019 and 2030 for 1.5° pathways.
• The protocol contains significant gaps regarding fossil fuels, failing to mention the cessation of coal financing or the need to address oil and gas emissions, with the term "fossil fuels" appearing only in a footnote.
• Several critical business areas are excluded from the protocol's scope, including treaty reinsurance, surety bonds, and "Construction/Erection All Risk" insurance, which the author claims allows insurers to support fossil fuel expansion while claiming net-zero commitment.
• The protocol is noted for two positive elements: requiring that physical intensity metrics result in absolute reductions of at least 34%, and prohibiting the use of carbon offsets to meet targets.

APA

Martin, L. (2023). Net-Zero Insurance Alliance’s target-setting protocol is a frustrating step backwards. Reclaim Finance. https://reclaimfinance.org/site/en/2023/01/18/net-zero-insurance-alliances-target-setting-protocol-is-a-frustrating-step-backwards/

Chicago

Martin, Léo. Net-Zero Insurance Alliance’s target-setting protocol is a frustrating step backwards. Reclaim Finance, 2023. https://reclaimfinance.org/site/en/2023/01/18/net-zero-insurance-alliances-target-setting-protocol-is-a-frustrating-step-backwards/.

Wikipedia

{{cite press release |last1=Martin |first1=Léo |title=Net-Zero Insurance Alliance’s target-setting protocol is a frustrating step backwards |publisher=Reclaim Finance |date=18 January 2023 |url=https://reclaimfinance.org/site/en/2023/01/18/net-zero-insurance-alliances-target-setting-protocol-is-a-frustrating-step-backwards/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{martin2023netzero, author = {Martin, Léo}, title = {{Net-Zero Insurance Alliance’s target-setting protocol is a frustrating step backwards}}, publisher = {Reclaim Finance}, year = {2023}, month = jan, url = {https://reclaimfinance.org/site/en/2023/01/18/net-zero-insurance-alliances-target-setting-protocol-is-a-frustrating-step-backwards/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }