Insurers climate group adjusts guidelines after GOP attacks

(Bloomberg) --The Net Zero Insurance Alliance, which has been rocked by claims of antitrust violations by US Republicans, is tweaking its membership criteria to evade further accusations of collusion.

The UN Environment Programme, which convened NZIA two years ago, said Wednesday in a statement that NZIA members will no longer be obligated to set or publish targets. Instead, companies will be responsible and publicly accountable for any targets they set, the methodologies used to set them, the timeline on which they decide to publish them, and the progress they're making, according to UNEP's statement.

Each company that chooses to be a member of the NZIA "unilaterally and independently decides on the steps on its path towards net zero," UNEP said. NZIA membership doesn't involve "any coordinated competitive conduct or exchanges of competitively sensitive information."

UNEP added that NZIA members "remain committed to the net zero transition and are engaging with a broader community of stakeholders on the future evolution of the NZIA."

Some members of the insurance alliance including Assicurazioni Generali SpA are also advocating for industry regulators to join a revamped NZIA, according to a person familiar with the matter who asked not to be identified disclosing details of private discussions. By being part of the group, regulators could observe and comment on the group's target-setting protocol, the person said.

The NZIA, which was assembled in 2021 by a group of the world's biggest insurers with a commitment to transition their insurance and reinsurance underwriting portfolios to net zero emissions by 2050, has become the most high-profile casualty of the GOP's anti-ESG attacks. Axa SA Chief Executive Officer Thomas Buberl has said the group was "brutally attacked" by the Republicans that claimed the alliance had violated antitrust laws.

Axa, which chaired the NZIA, was among a throng of insurers that left the group in May. Others included Scor SE, Allianz SE, Tokio Marine Holdings Inc., Lloyd's of London and MS&AD Insurance Group Holdings Inc.

At its peak, NZIA had roughly 30 members and represented about 15% of global insurance premiums. It lists 12 members on its website today, including Aviva Plc and Generali.