Canadian insurer joins NZIA and PSI
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Beneva has become the first Canadian insurer to join the UN-convened Net-Zero Insurance Alliance, an initiative where re/insurers are committed to transitioning their underwriting portfolios to net-zero greenhouse gas emissions.
The addition of the first North American member of the NZIA is a “landmark step” in advancing insurance thinking and practices to support the net-zero transition globally, said the NZIA.
It has also become a signatory of the Principles for Sustainable Insurance, which provide global guidance on the integration of environmental, social and governance risks into insurance underwriting.
Jean-François Chalifoux, president and chief executive of Beneva, said: “The accomplishments stemming from the important work of the PSI and NZIA will not only benefit our members, clients and partners, but they will also be shared with society.”
Apart from the two initiatives, the Canadian firm said it is committed to reducing the greenhouse gas emissions of its operations by 50% by 2030, using 2022 as its reference year, and by 50% by 2030 in its investment portfolio, based on 2021 as its reference year.
Butch Bacani, programme leader of the PSI, said by joining the two initiatives, Beneva is “responding to the climate emergency and demonstrating sustainability leadership and ambition”.
Earlier this month, the NZIA lost three European members as Munich Re, Zurich and Hannover Re all decided to leave.
Hannover Re did not specify a reason for quitting. Zurich said it wanted to focus its resources to help customers with their transition to a net zero economy, and Munich Re cited antitrust risks.
While these re/insurers decided to meet their net zero objectives without the alliance, Bacani said in relation to Beneva joining the initiatives: “Tackling global challenges to achieve a sustainable future requires collaboration, not just individual action.”
What are the principles of the PSI?
Launched in 2012, the four voluntary principles are based on the insurance industry’s core business to understand, manage and carry risks:
· Principle 1 - We will embed in our decision-making environmental, social and governance issues relevant to our insurance business.
· Principle 2 - We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.
· Principle 3 - We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.
· Principle 4 - We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the principles.
Will the NZIA be able to gain more members this year to make up for the loss of the three European firms?
