Zurich’s departure will raise further questions about the workability of voluntary industry associations targeting emissions reductions. While GFANZ, as the biggest finance sector initiative with sub-groups covering insurance to banking, has raised the awareness among senior executives about the need to address climate change, some members have complained it adds an administrative burden and may expose them to legal risks
Zurich Insurance Group AG is leaving a coalition of major insurers that have committed to reach net-zero emissions, the second high profile exit from the group in a matter of days.
The Swiss insurer said in a statement that it’s withdrawing from the Net-Zero Insurance Alliance, which is a sub-unit of the larger Glasgow Financial Alliance for Net Zero. The move comes after Munich Re said Friday it also will exit the group, which was convened by the United Nations in 2021 and has about 30 members.
Zurich’s departure will raise further questions about the workability of voluntary industry associations targeting emissions reductions. While GFANZ, as the biggest finance sector initiative with sub-groups covering insurance to banking, has raised the awareness among senior executives about the need to address climate change, some members have complained it adds an administrative burden and may expose them to legal risks.
In its statement, Zurich said it plans to support customers in their transition to clean energy. “We continue to remain fully committed to our sustainability ambitions and to supporting the net-zero transition,” it said.
Officials for NZIA weren’t available for comment.
While Zurich has quit the insurance alliance, it remains a member of GFANZ through its continued presence in another sub-group: the Net-Zero Asset Owner Alliance. Munich Re is a member of that same group and said it departed the insurance alliance because of “material antitrust risks.” Zurich didn’t cite antitrust concerns as a reason for its exit.
Zurich is the latest big name exit from a GFANZ group. Late last year, Vanguard Group Inc., the world’s second-biggest asset manager, said membership ultimately wasn’t compatible with its index-tracking business model.
In its statement, Zurich said it plans to support customers in their transition to clean energy. “We continue to remain fully committed to our sustainability ambitions and to supporting the net-zero transition,” it said.
Officials for NZIA weren’t available for comment.
While Zurich has quit the insurance alliance, it remains a member of GFANZ through its continued presence in another sub-group: the Net-Zero Asset Owner Alliance. Munich Re is a member of that same group and said it departed the insurance alliance because of “material antitrust risks.” Zurich didn’t cite antitrust concerns as a reason for its exit.
Zurich is the latest big name exit from a GFANZ group. Late last year, Vanguard Group Inc., the world’s second-biggest asset manager, said membership ultimately wasn’t compatible with its index-tracking business model.
Bloomberg