Spain’s Mapfre and Lloyd’s insurer Chaucer have joined the Net-Zero Insurance Alliance (NZIA) with the objective of achieving net zero emissions in their insurance and reinsurance underwriting portfolios by 2050.
This commitment means that in coming years, they intend to reduce greenhouse gas emissions as far as possible throughout their businesses.
In order to do so, Mapfre said it must establish underwriting criteria so that it can have a significant impact in terms of emissions, as well as define decarbonisation commitments with more relevant customers, and promote agreements, products, and services that foster carbon footprint reduction.
“Economic decarbonisation is essential for the planet,” said Antonio Huertas, (pic) Mapfre chairman and CEO, who has indicated that “our environmental commitment is to continue raising the demand for sustainability firmly and progressively, accompanying society in a fair transition, and helping our customers and people who depend on their activity to also converge in this direction.”
He also highlighted that “from our end, we care about improving the management of our environmental footprint, promoting the circular economy, and, through underwriting and investment, supporting the fair transition toward a net-zero economy, prioritising people’s well-being.”
The carrier has committed to neutralising its carbon footprint by 2024 in eight countries, and to reduce the group’s carbon footprint by 50% (compared to 2019) by 2030.
At present, Mapfre said it does not invest in companies that earn 20% or more of their revenue from coal-produced energy. In addition, Mapfre said it does not insure the construction of new infrastructure related to coal mines or thermal power plants, and has stopped underwriting new risks related to tar sands and petroleum or gas in the Arctic.
Chaucer said its commitment to Net Zero is already well underway, with the company committed to reducing emissions using science-based methods, to meet the goals of the Paris Agreement; and committed to decarbonising its investment portfolios and increase its investment in climate solutions.
John Fowle, CEO of Chaucer said: “We all need to play our part in addressing climate change. By committing to net-zero emissions by 2050 or sooner, including proactively addressing the carbon footprint and transition plans of our counterparties, Chaucer is determined to be a positive influence.”
“As a (re)insurance group, we see the devastating impact of climate change, as extreme weather events become more frequent and severe, causing untold damage in their wake. It is incumbent upon us all to do our part to aid the transition to a low-carbon global economy to help meet the Net Zero target.”
“Our commitment to Net Zero supports our existing initiatives in ESG. Our ESG scorecard with Moody’s will enable Chaucer to work closely with its business partners to help them become more sustainable and measure progress”.
Being Net-Zero means that the carriers are contributing to one of the goals of the Paris Agreement, which consists of limiting the rise in global temperature to 1.5ºC above pre-industrial levels by 2100.