UN-convened

Net-Zero Insurance Alliance

Target-Setting Protocol
Version 1.0

January 2023
Contents

Important note.............................................................................................................. 3
1. Context of the NZIA Target-Setting Protocol (“Protocol”)....................................5
1.1 The NZIA’s Commitment............................................................................................5
1.2 The Science Based Targets initiative.......................................................................6
1.3 The role of re/insurance in a just transition to net zero.......................................7
2. How to use this Protocol......................................................................................8
2.1 How to read this Protocol..........................................................................................9
2.2 Quick start guide..........................................................................................................9
2.3 Minimum requirements for target setting........................................................... 10
3. General scope of the Protocol............................................................................13
3.1 Target term................................................................................................................ 13
3.2 Emissions in scope.................................................................................................. 14
3.3 Business in scope..................................................................................................... 15
3.4 Timing of target setting........................................................................................... 17
4. Recommended target types...............................................................................20
4.1 Emissions reduction target category.................................................................... 20
4.2 Engagement target category.................................................................................. 28
4.3 Other targets category: re/insuring the transition target type ........................ 31
5. Target disclosure and reporting.........................................................................33
5.1 Disclosure of target(s) and their portfolio boundary(ies)................................. 33
5.2 Reporting on actions and target progress........................................................... 33
5.3 Where to disclose and report................................................................................. 34
5.4 Recalculation of targets.......................................................................................... 34
6 Roadmap to Version 2 (and beyond) of the Protocol.........................................35
Acknowledgements.................................................................................................... 37

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 2

Contents | 
Important note

The United Nations-convened Net-Zero Insurance Alliance (NZIA) and its members
are committed to complying with all applicable laws, rules and regulations. These
include, among others, antitrust and other laws, rules and regulations, which may
impose restrictions on the information that may be exchanged as well as on the types
of collaborative engagement that may be carried out between NZIA members. Accord-
ingly, the NZIA will not recommend nor instruct its members to:
1. adopt specific measures to achieve the targets provided in this document;
2. discuss or reach agreement(s) on individual target-setting measures;
3. exchange any competitively-sensitive information relating to their respective busi-
nesses with other NZIA members.
For the avoidance of doubt, NZIA members are under no obligation to continue their
relationship with NZIA and, while this document may propose general measures and
best practices on how to set and pursue individual targets, NZIA members shall, at all
times, each remain free to determine and implement their respective decarbonisation
strategies independently and unilaterally.
As an initiative with global aspirations, the NZIA and its members are conscious of the
need to pursue the global 1.5°C climate goal in a manner that remains compliant with
all applicable laws, rules and regulations, including antitrust laws and regulations. This
document will not establish any strict requirement directly or indirectly related to NZIA
members’ underwriting criteria, including any criteria related to any specific sector. This
is without prejudice to the individual NZIA members’ freedom to establish unilaterally
their own underwriting criteria, including exclusionary criteria, in a manner aligned with
their own individual targets. Similarly individual members will be free to set their own
targets under this NZIA Target-Setting Protocol (“Protocol”) independently, unilaterally
and based on their own unique circumstances and in compliance with all laws, rules
and regulations that apply to them, including applicable antitrust laws and regulations.
NZIA members will do their utmost in alignment with the goal of the Paris Agreement
to keep global temperature rise well below 2°C, preferably to 1.5°C. Setting targets in
compliance to the recommendations in this Protocol does not guarantee that an NZIA
member's measures, plans, or claims that follow from these targets are aligned with
the global 1.5°C climate goal.

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Contents | Important note
When conducting discussions within the context of the NZIA’s activities, the NZIA
and its members have ensured and will ensure that no competitively-sensitive infor-
mation is shared and that no participant is required, expected nor incentivised to
exchange any information that could amount to insider information or, in any case,
competitively-sensitive information.
The work leading to the adoption of this Protocol included a public consultation in
November 2022. The consultation was open to all interested parties, including regu-
lators, participants from across the re/insurance industry, brokers, policymakers, data
providers, consultants, academia, non-governmental organisations (NGOs), insurance
associations, and civil society as a whole. The NZIA considered the input and feedback
received during the consultation process, which were reflected in this Protocol, to the
extent it was feasible and implementable and compatible with applicable laws, rules
and regulations.

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Contents | Important note
1. Context of the NZIA Target-
Setting Protocol (“Protocol”)

1.1 The NZIA’s Commitment

NZIA members are voluntary signatories to the NZIA convened, by the UN Environ-
ment Programme’s Principles for Sustainable Insurance Initiative (PSI). As such, NZIA
members have committed1 to the "Transitioning all operational and attributable green-
house gas (GHG) emissions from its insurance and reinsurance underwriting portfolios
to net-zero emissions by 2050 consistent with a maximum temperature rise of 1.5°C
above pre-industrial levels by 2100 in order to contribute to the implementation of the
COP21 Paris Agreement.".
How to achieve such an outcome through a 1.5°C-aligned pathway2 will be left to each
NZIA member’s individual discretion, using re/insurance-relevant approaches as listed
in the NZIA's Commitment3 and taking into consideration the latest available scien-
tific knowledge and associated social impacts, and the findings of recognised reports
such as the 6th Assessment Report by the Intergovernmental Panel on Climate Change
(IPCC)4 and the Net Zero by 2050 report by the International Energy Agency (IEA).5 This
Protocol looks to address the target-setting approach that NZIA members can adopt to
facilitate this ambition.
NZIA members shall make their respective first individual targets public within six (6)
months of the publication of this Protocol, or within six (6) months of joining the NZIA
(see Section 3.4, "Timing of target setting"). NZIA members will then independently report
publicly on an annual basis in whatever form and detail they consider appropriate on
the progress against the individual targets they have set themselves under this Protocol.

1 unepfi.org/psi/wp-content/uploads/2021/07/NZIA-Commitment.pdf
2 Use decarbonisation scenarios from the IPCC 6th Assessment Report, which are from credible and well-rec-
ognised sources; are no/low overshoot; do not rely on overstating the impact from negative emissions technol-
ogies; and to the extent possible, minimise misalignment with other UN Sustainable Development Goals
3 The NZIA's Commitment lists as "net-zero approaches": 1) Setting independently underwriting criteria and guide-
lines for […] the most GHG-intensive and GHG-emitting activities within its underwriting portfolios; 2) Engaging
with clients and potential clients; 3) Developing and offering insurance and reinsurance products for low-emis-
sion and zero-emission technologies; 4) Improving claims management in an environmentally sustainable
manner; 5) Integrating […] decarbonisation-related risk criteria into risk management frameworks; 6) Advocating
for and engaging in governmental policies for a science-based and socially just transition of economic sectors
to net zero
4 Intergovernmental Panel on Climate Change (2021–2022): 6th Assessment Report
5 International Energy Agency (2021): Net Zero by 2050: A roadmap for the global energy sector

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 5

Contents | Context of the NZIA Target-Setting Protocol (“Protocol”)
In all circumstances, NZIA members will refrain from disclosing competitively-sensitive
information and be particularly careful not to report information that may negatively
affect competition in any relevant market.

Navigating the limitations and dependencies re/insurers face when

setting targets
The NZIA Commitment is made with the expectation that governments will follow
through on their own commitments6 under the Paris Agreement of holding the increase
in the global average temperature to well below 2°C, preferably 1.5°C. NZIA members
rely on the intergovernmental ambition established under the Paris Agreement that this
is done in a manner consistent with a maximum temperature rise of 1.5°C and in accord-
ance with the latest available scientific findings.
The NZIA and its members recognise that they play an important role in supporting the
net-zero transition but acknowledge that they cannot deliver a net-zero future on their
own without comparable commitments from governments and wider industry actors
(including intermediaries). If the actual speed of decarbonisation across the broader
global economy lags too far behind a net-zero compatible pathway, NZIA members
might not be able to achieve their stated targets. The NZIA may need to tolerate a “buffer”
behind the scientific pathways in future iterations of the Protocol to reconcile members’
ambition to reach net zero with the need to continue to provide insurance capacity to
activities essential to the global economy and society.

1.2 The Science Based Targets initiative

The Science Based Targets initiative (SBTi) defines and promotes best practice in
science-based target setting and independently assesses companies’ climate targets.
SBTi has long recognised the key potential that financial institutions have to support the
economy in reducing GHG emissions, even without direct control over those reductions.
Therefore, in a first step, SBTi developed guidance for financial institutions’ lending and
investment activities to set science-based near-term reduction targets ("FI Guidance").7
Launched officially in October 2020, the FI Guidance defines global best practices for
financial institutions to set near-term lending and investment portfolio targets aligned
with the global 1.5°C climate goal. The FI Guidance allows insurers, in their role as insti-
tutional investors, to set targets independently for the decarbonisation of the asset side
of their balance sheet. However, the liability side of insurers’ balance sheets (i.e. the
emissions associated with and enabled by re/insurance underwriting portfolios), have
so far been out of scope of SBTi’s guidance.

6 To find out more about policy levers for government to realize intergovernmental ambition: GFANZ Call to Action
(assets.bbhub.io/company/sites/63/2021/10/GFANZ-call-to-action.pdf)
7 SBTi (2020): Financial Sector Science-Based Targets Guidance, Version 1.1 (August 2022) sciencebasedtargets.
org/resources/files/Financial-Sector-Science-Based-Targets-Guidance.pdf

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Contents | Context of the NZIA Target-Setting Protocol (“Protocol”)
Currently, SBTi is developing the world's first standard for science-based net-zero targets
in the financial sector ("FINZ").8 The FINZ work has the ambition to include informational
guidance for science-based target setting for re/insurers' underwriting activities, thus
extending the coverage of the FI Guidance not only in terms of target horizon (net zero
vs near term), but also in terms of the portfolios considered (including re/insurance
underwriting vs. investments/lending only). SBTi FINZ criteria will be incorporated in the
FI Guidance and new methods for re/insurance underwriting portfolios are expected to
be implemented in both once they have undergone sufficient development and stake-
holder engagement.
In recognition of the complementary objectives of the NZIA's Target-Setting Protocol
work and SBTi's FINZ work, the two initiatives announced their decision to formally
partner in October 2022 to collaboratively develop guidance for underwriting portfolios.
The long-term goal of the partnership is to harmonise the processes and criteria for
re/insurance companies to participate efficiently in both initiatives. This is an iterative
process, and substantial differences between the initiatives may persist during early
stages given their differing governance and orientation. The NZIA and its members are
looking forward to collaborating, on the basis launched by this Protocol, with SBTi in the
development of the upcoming FI Guidance and criteria updates.

1.3 The role of re/insurance in a just transition to

net zero
It has been recognised that the shift to a resilient net-zero economy will likely increase
prosperity and could be a net driver of job creation. However, there will be significant
transitional challenges for employees, communities, cities and countries while this shift
takes place. To address this, re/insurance strategies dealing with climate change must
consider the social consequences that a rapid net-zero transition might cause, while
ensuring that it is inclusive and that no one is left behind—a core principle of the UN’s
Sustainable Development Goals. The concept of a just transition9 comes from combining
climate action with social inclusion.
For instance, while seeking to reach a global reduction of carbon emissions in line with
the global 1.5°C climate goal, re/insurers should recognise that not all regions, countries
or communities can be expected to transition at the same pace. Re/insurers should
consider different decarbonisation trajectories for identified segments of their own port-
folios and adapt their individual engagement to facilitate their net-zero transition strate-
gies to address these disparities, while monitoring that the average pace of their overall
portfolio emissions reductions remains in line with the necessary global ambition.

8 The "FINZ" work kicked off with a public consultation from November 2021 to January 2022 and resulted in
the publication of: SBTi (2022): Foundations for Science-Based Net-Zero Target Setting in the Financial Sector,
Version 1.0 (April 2022) sciencebasedtargets.org/resources/files/SBTi-Finance-Net-Zero-Foundations-paper.pdf
9 Just Transition Centre (2017): Just transition: A report for the OECD oecd.org/environment/cc/g20-climate/
collapsecontents/Just-Transition-Centre-report-just-transition.pdf

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 7

Contents | Context of the NZIA Target-Setting Protocol (“Protocol”)
2. How to use this Protocol

This Protocol sets out NZIA’s recommended approach to target setting and reporting.
The Protocol's structure, terminology, and target types are inspired by SBTi's Finan-
cial Sector Science-Based Targets Guidance, noting that data and methodological
constraints persist.10 The Protocol provides non-binding informational guidance to NZIA
members on how to independently set targets in line with the latest climate science.
NZIA members will work with their re/insurance customers, who are also undergoing
their own respective transition journeys, and it is hoped that this will lead to procom-
petitive benefits for these customers as both re/insurers and re/insureds innovate to
facilitate their transitions, while remaining competitive in their respective markets.
The Protocol first sets out a methodology for establishing the general scope for target
setting, describing the recommended coverage in terms of target term (time horizon),
emissions in scope, business in scope, as well as the timing related to target setting under
the Protocol. The Protocol then suggests five target types, split into three differentiated
target categories, as illustrated in Figure 1 below: i) GHG emissions reduction, ii) engage-
ment, and iii) re/insuring the transition. Lastly, it contains general recommendations
around publishing targets and reporting on progress towards targets. The intention is
that future versions of the Protocol will recommend a target-setting validation process, in
addition to incorporating further updates that may include, but are not necessarily limited
to, scope expansions and target refinements. Future potential updates are discussed in
further detail in Section 6, “Roadmap to Version 2 (and beyond) of the Protocol".
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Figure 1: Summary of the Protocol’s five target types in three target categories

10 https://sciencebasedtargets.org/resources/files/Financial-Sector-Science-Based-Targets-Guidance.pdf

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 8

Contents | How to use this Protocol
2.1 How to read this Protocol
Within the context of this Protocol, it is necessary to distinguish between provisions
which are requirements, those which are recommendations, and those which are other
options that re/insurers may choose to follow. Accordingly, the following terms are used
throughout this Protocol:
◾ Shall means that a process is mandatory, on a comply-or-explain basis.
◾ Should means that a process is optional, but strongly recommended.
◾ May means that a process is optional.
When implementing this Protocol, re/insurers are to be mindful of applicable laws, rules
and regulations in the jurisdictions in which they operate. In case of conflict between
applicable laws, rules and regulations (including those relating to antitrust/competition)
and any of the provisions contained in this Protocol, the applicable laws, rules and regu-
lations shall prevail. Any deviations from the Protocol for this reason should be high-
lighted to protect the goal and value of the Protocol.

2.2 Quick start guide

Users of this Protocol can follow four basic steps to set and report on the recommended
targets, as illustrated in Figure 2 below:

Step 1: Become familiar with the general scope ("playing field") of the Protocol in
Section 3, "General scope of the Protocol".
Step 2: Independently select a target type or set of target types from the suite of
target types ("basket") presented in Section 4, "Recommended target types", and
define a target or set of targets for each selected target type.
Step 3: Individually define the portfolio target boundary ("the part of the play-
ing field that is to be covered") for the target or for each target that has been
defined, and explain the businesses covered and their materiality to the relevant
re/insurer’s portfolio.
Step 4: Publish the target(s) and target boundary(ies) decided upon, and report
annually on the progress towards meeting these targets.

To strive for a minimum ambition level consistent with the overall purpose of limiting
global warming to 1.5°C above pre-industrial levels by 2100 in line with the Paris Agree-
ment,11 the NZIA has set minimum requirements for Step 2: target selection and Step 3:
portfolio target boundary, as outlined in Section 2.3, "Minimum requirements for target
setting" below.

11 The Paris Agreement states "to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared
to pre-industrial levels".

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 9

Contents | How to use this Protocol
 Step 1: Familiarise Step 2: Independently Step 3: Individually Step 4: Publish
yourself with the select one or more set your portfolio targets and
General Scope of target types, in line target boundary report annually
the Protocol with the minimum for each target and on progress
requirements for target explain it
setting, and define your
target or targets per
selected target type
Target A
General scope
of the Protocol
("Playing field")
• Target term
(time horizon) • Two emissions
Target C
• Emissions in scope reduction types
• Business in scope • Two engagement
• Timing around types Target B
target setting
• Re/insuring the
transition

Figure 2: How to use the NZIA Target-Setting Protocol

2.3 Minimum requirements for target setting

2.3.1 Requirements for target selection

The intention is that the implementation of each of the three target categories suggested
in the Protocol (i.e. emissions reduction, engagement, and/or re/insuring the transition)
will support the decarbonisation of re/insurance portfolios in different yet complemen-
tary ways. By combining the three target categories, a re/insurer can have the greatest
impact and contribute to the desired transition towards a net-zero economy.
For their first target(s) set and disclosed under this Protocol, NZIA members shall select:
◾ by 31 July 2023, at least one of the five target types described in this Protocol
(Section 4, "Recommended target types"); and
◾ by 31 July 202412, at least one target type in each of the three target categories (as
described in Section 4.1, "Emissions reduction target category"; Section 4.2, "Engagement
target category"; and Section 4.3, "Other targets category: re/insuring the transition")

2.3.2 Requirements for portfolio target boundary

It is the mid/long-term ambition of NZIA members to establish a methodology which
encompasses a broad scope of their re/insurance portfolios with decarbonisation
targets, in line with the NZIA core commitment of transitioning all attributable GHG emis-
sions from their re/insurance underwriting portfolios to net zero by 2050, consistent with
a maximum temperature rise of 1.5°C.

12 This ensures that sufficiently credible and meaningful science-based target data and portfolio emissions data
is available.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 10

Contents | How to use this Protocol
However, at the moment, the coverage is limited by: (i) the scope of the available meth-
odology to account for and report on GHG emissions associated with re/insurance
portfolios (c.f. the PCAF Insurance-Associated Emissions Standard13), (ii) the lack of
science-based guidance for credible target setting in all sectors (e.g. sectoral decar-
bonisation pathways); and (iii) the availability of emissions data from/or in relation to
underlying re/insureds. There are also practical challenges in integrating emissions data
into NZIA members’ systems and/or requesting and collecting emissions data from re/
insureds (e.g. for portfolios dominated by small-to-medium-sized enterprises (SMEs),
where companies are still often unable to develop accurate emissions information).
Within the limitations and challenges described above, NZIA members shall individually
set portfolio target boundaries for a material and relevant portion of their respective
portfolios where reliable data is available. NZIA members may set different portfolio
target boundaries for different targets.
Members shall explain the rationale behind their choice of portfolio target boundaries
in their disclosure of targets and portfolio target boundary as per Section 5.1 "Disclosure
of target(s) and their portfolio target boundary", and quantify these boundaries using one
or a combination of the following metrics: gross written premiums (GWP), re/insured's
absolute GHG emissions, re/insurer's IAEs (e.g. as per the PCAF Insurance-Associ-
ated Emissions Standard14), revenue, number of clients, or another appropriate metric.
This ensures clarity regarding what portion of the full in-scope (sub)portfolio an NZIA
member considers as "material and relevant" with reliable data sufficiently available.
Irrespective of the metric chosen, the member's unilateral assessment of what is
"material and relevant" in its portfolio should be guided by that portfolio's reflection of
real-economy emissions. In particular, the quantification of target boundaries using busi-
ness metric values may not clearly denote the emissions significance versus the out-of-
scope portion of the portfolio, requiring further explanation of the underlying assessment
of materiality and relevance.
Any explanation must avoid sharing of any competitively-sensitive information.
NZIA members are aware of the highest-emitting sectors through basic science and
public climate data. This knowledge, alongside publicly available business indicators,
may inform the members' materiality assessments when setting their individual portfolio
target boundaries. For example, NZIA members could refer to the SBTi categorisation
when establishing highest-emitting sectors (see Figure 3 below).

13 carbonaccountingfinancials.com/files/downloads/pcaf-standard-part-c-insurance-associated-emis-
sions-nov-2022.pdf
14 carbonaccountingfinancials.com/files/downloads/pcaf-standard-part-c-insurance-associated-emis-
sions-nov-2022.pdf

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Contents | How to use this Protocol
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Figure 3: Sectors for which sectoral guidance by SBTi is available or in development.

To support the ambition of the NZIA, members should expand their initial portfolio
target boundaries over time, and the intention is that future versions of this Protocol will
provide additional minimum requirements for portfolio target boundary setting, as data
availability, as well as accounting and reporting standards, improve over time.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 12

Contents | How to use this Protocol
3. General scope of the Protocol

3.1 Target term

In interpreting this Protocol, NZIA members should refer to the Science Based Target
Initiative’s (SBTi) Corporate Net-Zero Standard, where “net-zero” in the corporate context
is defined as:15
◾ reducing Scope 1, 2, and 3 emissions to zero or to a residual level that is consistent
with reaching net-zero emissions at the global or sector level in eligible 1.5°C-aligned
pathways; and
◾ neutralising any residual emissions at the net-zero target year and any GHG emis-
sions released into the atmosphere thereafter.
The SBTi Corporate Net-Zero Standard differentiates four key elements for net-zero
target setting, as illustrated in Figure 4 below.
1. Near-term science-based targets are 5 to 10-year GHG mitigation targets within a
company’s own value chain in line with 1.5°C pathways;
2. Long-term science-based targets extend the near-term targets towards a residual
level in line with 1.5°C pathways by no later than 2050;
3. Beyond value chain mitigation (BVCM) targets are set around actions that will also
help others to mitigate their emissions;16 and
4. The neutralisation target requires that, to reach the net-zero state, any residual
emissions must be removed from the atmosphere and permanently stored.
SBTi has yet to come out with an exact definition of "net zero" in a financial institution's
context (including re/insurance underwriting portfolios). This is currently being done by
SBTi for the upcoming FINZ Standard. For instance, a key working area in the FINZ is
in what form and to what extent a financial institution's ability to influence the net-zero
transition is reflected in its net-zero goal ("transition finance/enablement targets").
Notwithstanding a potential refinement of the net-zero goal definition for financial insti-
tutions, and acknowledging the need to prioritise immediate and decisive emissions
reduction efforts in 1.5°C pathways, this Version 1.0 of the Protocol is geared towards
near-term science-based reduction targets, (see item 1 in Figure 4 below).

15 SBTI (2021): SBTi Corporate Net-Zero Standard sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf

16 BCVM targets are not presently assessed by SBTi.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 13

Contents | General scope of the Protocol
Certain target types presented in this Version 1.0 of the Protocol may also cater to one or
more of the other three key elements of SBTi's Corporate Net-Zero Standard (see items
2, 3 and 4 in Figure 4 below). This is something users of the Protocol are encouraged
to explore. Future versions of the Protocol are expected to cover dedicated long-term,
beyond value chain, and neutralisation targets for insurance-associated emissions.

Figure 4: Key elements of the SBTi Corporate Net-Zero Standard: 1) Near-term

science-based targets, 2) long-term science-based targets, 3) beyond value chain
mitigation, 4) neutralisation of residual emissions. (Source: SBTi Corporate Net-Zero
Standard, 2021, p.9).

3.2 Emissions in scope

Greenhouse gases in scope
The term "emissions" in this Protocol addresses all types of greenhouse gases (GHGs).17
NZIA members shall, where significant and reliable data is available, cover all relevant
types of GHGs in setting their targets under this Protocol.

17 "Relevant GHGs" are considered the seven gases mandated under the Kyoto Protocol and to be included in
national inventories under the United Nations Framework Convention on Climate Change (UNFCCC)—carbon
dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur
hexafluoride (SF6), and nitrogen trifluoride (NF3). These typically refer to the underlying emissions produced by
the individual or company in the real economy. All GHGs are typically reported in "CO2 equivalents" (CO2e).

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 14

Contents | General scope of the Protocol
Re/insurer's emissions in scope
The Protocol addresses a re/insurer's Insurance-Associated Emissions (IAE), i.e. Scope
3/Category 15/Underwriting18 as per the GHG Protocol Corporate Standard definition. In
particular, a re/insurer's emissions from its own operations (Scope 1, Scope 2, Scope 3/
Category 1–14) and asset management activities (Scope 3/Category 15/Investments)
are outside the scope of the Protocol, as they are covered by other relevant protocols.

Re/insured’s emissions in scope

NZIA members shall cover a re/insured's attributable Scope 1, Scope 2, and—where
significant and where data allow—should cover a re/insured's attributable Scope 3 emis-
sions in their IAE reduction targets.19

Emissions accounting
NZIA members shall use a recognised and consistent IAE accounting approach (e.g.
PCAF Insurance-Associated Emissions Standard20, CRO Forum Carbon Footprinting
Methodology for Underwriting Portfolios21) for setting and tracking progress towards
their targets.

3.3 Business in scope

Legal entity level
NZIA members shall submit targets at the parent-level or group-level at a minimum.

Lines of business in scope

This Version 1.0 of the Protocol is applicable to the following lines of business (LoBs)
where an IAE methodology exists:22

18 Insurance-Associated Emissions are GHG emissions in the real economy, which are associated with specific
re/insurance policies aggregated in the re/insurance portfolio. This definition is for accounting purposes only.
Insurance-Associated emissions should therefore be reported as a supplementary note to Scope 3 Category 15
(Investments). They should not be aggregated with “Financed Emissions”. See also the PCAF Insurance-Associ-
ated Emissions Standard that defines how to measure and report IAEs (carbonaccountingfinancials.com/files/
downloads/pcaf-standard-part-c-insurance-associated-emissions-nov-2022.pdf).
19 For a discussion on Scope 3 data and availability, see “Busch et al. 2020. Corporate carbon performance data:
Quo vadis?. Journal of Industrial Ecology 26(4)” researchgate.net/publication/340906588_Corporate_carbon_
performance_data_Quo_vadis
20 carbonaccountingfinancials.com/files/downloads/pcaf-standard-part-c-insurance-associated-emis-
sions-nov-2022.pdf
21 thecroforum.org/wp-content/uploads/2020/05/CRO-Carbon-Foot-Printing-Methodology.pdf
22 The scope of this Version 1.0 of the NZIA Target-Setting Protocol is aligned with the scope of methodologies
issued by the Partnership for Carbon Accounting Financials (PCAF) for the calculation of insurance-associated
emissions.

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Table 1: Lines of business in scope (adapted from PCAF)

Segment Lines of business (LoB) In/out of “General scope”

Commercial Property In scope

insurance (e.g. Fire, Multi-peril)
(directly
insured and Liability/Casualty In scope
facultative (e.g. General liability, Product liability, Product
reinsurance recall, Environmental liability)
covers)
Commercial motor In scope
(all lines)
Marine (liability and hull) In scope
Aviation (liability and hull) In scope
Agriculture (excluding government schemes/ In scope
arrangements)
Trade credit (insurance of credit risk for In scope
sold goods) and political risk—primary
insurance only
Structured trade credit (insurance of credit Out of scope of the current version
risk for bank loans, mortgages, or other of the Protocol
financial instruments)
Surety Out of scope of the current version
of the Protocol
Engineering lines: Construction all-risks, Out of scope of the current version
Erection all-risks only of the Protocol
All other Engineering lines (e.g. Machinery In scope
breakdown, Electronic equipment)
Corporate life and pensions, Personal acci- Out of scope of the current version
dent of the Protocol
Other/Special lines In scope
(e.g. Financial lines [e.g. Professional indem-
nity, Directors’ & Officers’ liability], Workers’
compensation)
Statutory In scope (subject to applicable laws,
lines of rules and regulations)
business
Public Insurance contracts purchased by public enti- Out of scope of the current version
entities ties (e.g. government agencies, municipalities, of the Protocol
government insurance arrangements)

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 Segment Lines of business (LoB) In/out of “General scope”

Personal Motor (all lines) In scope

lines
Liability Out of scope of the current version
of the Protocol
Property Out of scope of the current version
of the Protocol
Other personal lines (e.g. Travel assistance, Out of scope of the current version
Legal assistance, Pet) of the Protocol
Life and Health Out of scope of the current version
of the Protocol
Treaty All LoBs Out of scope of current version of
reinsurance the Protocol
(including
treaty-like
facultative
reinsurance
structures)

To recall, NZIA members individually set a portfolio target boundary for each target they
choose, thereby defining which of the LoBs that are in scope (as listed in Table 1 above)
will be covered (or not) by the particular targets established by that re/insurer. The NZIA
will consider whether further LoBs are to be brought “in scope” for the purposes of target
setting and will update future versions of the Protocol accordingly.

3.4 Timing of target setting

This section establishes the standard for:
◾ the date by which the target(s) have to be reported, depending on the date when the
member joined the NZIA;
◾ the base year(s) and target year(s); and
◾ the date by which the company first has to report on the progress achieved.
Furthermore, guidance is provided as to how prospective NZIA members can assess
existing targets against the requirements of the Protocol prior to joining NZIA, and how
future versions of the Protocol should be taken into account for members who have
already published targets.

Date for target disclosure

As per the NZIA Commitment, once the first Protocol is published (i.e. this document—
Version 1.0 of the Protocol), NZIA members shall set and disclose their first targets
within six (6) months of its publication, in line with the Protocol's requirements.

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Requirements for new NZIA members
New NZIA members joining until and including 31 July 2023 shall set within six (6)
months from the date of joining at least one of the five target types (as described in
Section 4, "Recommended target types"), and shall set by 31 July 2024 at least one
target type in each of the Protocol's three target categories.
Members joining from 1 August 2023 until and including 31 December 2023 shall set
by 31 July 2024 at least one target type in each of the Protocol's three target categories.
Members joining from 1 January 2024 shall set within six (6) months from the date of
joining at least one target type in each of the Protocol's three target categories.

Base year(s)
NZIA members shall choose a base year when setting targets. The base year shall be
no earlier than 2019.

Progress to date
Targets shall not be set such that they have already been achieved by the date they are
published (i.e. in the period between base year and date of target publication).

Target year(s)
NZIA members shall adopt a target year no later than 2030 for their near-term targets,
and thereafter publish interim targets every five years in 2035, 2040, and 2045.23 24
◾ Example 1: Insurer A sets its first near-term target year to 2030, and will in that year
publish updated targets for 2035, in 2035 for 2040, etc.
◾ Example 2: Insurer B sets its first near-term target year to 2028, and will in that year
publish updated targets for 2035, in 2035 for 2040, etc.
Future versions of this Protocol are expected to provide further considerations for
setting long-term targets up to 2050 (see Section 3.1, "Target term").

First reporting year of progress

NZIA members shall use official channels for independent disclosure and reporting (see
Section 5.3, "Where to disclose and report" below for various possible channels). The
progress should only be reported after at least 12 months of actual experience has
passed since a target has been set (see Section 5, "Target disclosure and reporting").

23 This schedule is in line with article 4.9 of the UNFCCC 2015 Paris Agreement which requires signatories to
submit updated emissions reduction plans every five years. National governments who have signed up to the
Paris Agreement will communicate these updated emissions reduction plans, also known as Nationally Deter-
mined Contributions (NDCs), in 2025, 2030, 2035, 2040, 2045 and 2050.
24 Material changes to a member may require the need to recalculate and re-baseline the IAE. These changes may
require a change to the base year, while the target year should remain unchanged.

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Protocol version validity
New targets published by NZIA members shall be in line with the latest version of the
Protocol available at the time when the targets are set.
Targets using a previous version of the Protocol shall only be published within six (6)
months of the publication of the revised Protocol.
Each new version of the Protocol provides considerations for members with previously
set targets, in particular specifying the possible expectation to set additional targets and/
or adjust existing ones.

Pre-existing targets
Targets set by a member prior to joining the NZIA can be considered if the member can
demonstrate (in their published reporting on their approach to target-setting under this
Protocol) their compatibility with this Protocol or any later version, in particular with
respect to the ambition level as outlined in Section 4.1.1, "Level of ambition for emis-
sions reduction targets".

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4. Recommended target types

4.1 Emissions reduction target category

The Protocol suggests two possible target types under the emissions reduction target
category, with each NZIA member being free to unilaterally choose which of these it will
select when setting its target(s):
1. An overarching emissions reduction25 target type that uses a global, econo-
my-wide proxy to guide the ambition level for re/insurers' own insurance-associ-
ated emissions reduction targets; and/or
2. The sectoral decarbonisation approach (SDA) that seeks to converge an individual
re/insurance portfolio's physical carbon intensity to a given decarbonisation path-
way at the sector level.
The decision as to which of these two target types is chosen is made at the unilateral and
independent discretion of each NZIA member, depending on its individual circumstances.
While the first approach leaves flexibility for NZIA members to define their level of ambition
at the portfolio level, it might not be as precise or focused as sector-specific approaches.
The SDA, on the other hand, requires that NZIA members focus on decarbonisation trajec-
tories26 within specific sectors, but the approach places higher demands on a particular set
of client data (physical intensities) and on external organisations providing science-based
pathways for each sector (ideally tailored to underwriting activities).
Before addressing both emissions reduction target types, the Protocol sets out general
recommendations in the context of IAE emissions reduction targets around the level of
ambition expected of NZIA members as well as the use of offsets, avoided emissions,
and emissions removal.

4.1.1 Level of ambition for emissions reduction targets

In determining the level of ambition for their IAE reduction targets, NZIA members shall
use decarbonisation scenarios from the latest climate science findings by the IPCC and
from other credible and well-recognised sources that lead to the earliest reductions and
the least cumulative emissions, in line with a 1.5°C-aligned pathway with no or limited
overshoot (i.e. temporary increase above 1.5°C).

25 Overarching, in this context, is not automatically indicating that the entire re/insurance portfolio is covered by an
overarching emissions reduction approach. Like with all target types, a target's coverage is set individually by NZIA
members via the portfolio target boundary (see Section 2.3.2, “Requirements for portfolio target boundary”).
26 For guidance on sectoral pathways: see GFANZ Guidance on the Use of Sectoral Pathways for Financial Institutions
(assets.bbhub.io/company/sites/63/2022/06/GFANZ_Guidance-on-Use-of-Sectoral-Pathways-for-Financial-In-
stitutions_June2022.pdf)

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4.1.2 Carbon offsets, avoided emissions and
emission removals
The use of carbon offsets (carbon avoidance and/or reduction certificates27) as well as
insurance-associated avoided emissions28 shall not be counted towards the progress
of IAE reduction targets.
Insurance-associated emission removals are important for long-term net-zero target
setting and the NZIA intends to address them in a subsequent version of this Protocol.
Notwithstanding the above, technologies and activities that are (partly) financed via
carbon offsets and/or lead to emission avoidance or emission removal outcomes in the
real economy are important elements of the net-zero transition, and while not (yet) to be
addressed under the Protocol's emissions reduction target category, such technologies
and activities may be addressed under the two other target categories presented in this
Protocol (i.e. engagement and re/insuring the transition).

4.1.3 Overall emissions reduction target type

To recall from Section 1.1, "The NZIA's Commitment", each member has agreed to tran-
sition “all attributable greenhouse gas (GHG) emissions from its insurance and reinsur-
ance underwriting portfolios to net-zero emissions by 2050 consistent with a maximum
temperature rise of 1.5°C above pre-industrial levels by 2100 in order to contribute to the
implementation of the COP21 Paris Agreement”. How to achieve this outcome through
a 1.5°C-aligned pathway is to be “based on the latest available scientific knowledge,
including the findings of the Intergovernmental Panel on Climate Change (IPCC).”29

Findings of the IPCC30

The NZIA recognises that IPCC reports provide a comprehensive and balanced
assessment of the state of scientific, technical and socio-economic knowledge
on climate change, its impacts and future risks, and options for reducing the rate
at which climate change is taking place.31 The IPCC's most recent report is the
Sixth Assessment Report (AR6, 2021/22).32 IPCC Assessment Reports consist

27 Carbon avoidance/reduction certificates, often referred to as "carbon offsets", are attributes of the carbon avoid-
ance or reduction outcome linked to a project/activity that would not have materialised in the absence of the
funding from the sales of these carbon offsets. To date, carbon offsets only feature in real-economy GHG
accounting, and thus cannot be transferred to IAE accounting and used against IAE reduction targets.
28 GHG emissions accounting in the real economy sometimes compares actual emissions of a zero- or low-emis-
sion project, product, or service to the hypothetical emissions of high-emission alternatives. The difference
between the two is referred to as avoided emissions. “Insurance-associated avoided emissions” could be calcu-
lated and accounted for in the same way. Reporting avoided emissions is an attempt by companies to demon-
strate a quantifiable positive contribution to decarbonisation. However, given that internationally recognised
methodologies to calculate and report avoided emissions are yet to be developed, they are not covered in this
version of the Protocol.
29 unepfi.org/psi/wp-content/uploads/2021/07/NZIA-Commitment.pdf
30 Please note that the findings and recommendations of the IPCC are acknowledged by both the NZIA and the
UN-convened Net-Zero Asset Owner Alliance (NZAOA).
31 ipcc.ch/about/preparingreports/
32 ipcc.ch/reports/?rp=ar6

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 of contributions from each IPCC Working Group and a Synthesis Report integrat-
ing these contributions and any Special Reports prepared in that assessment
cycle. Working Group III (WGIII) of the IPCC focuses on climate change mitiga-
tion, assessing methods for reducing greenhouse gas emissions, and removing
greenhouse gases from the atmosphere. WGIII finalised its contribution to AR6 in
April 2022. The findings can be found in the IPCC Report, Climate Change 2022:
Mitigation of Climate Change (WGIII Report).33 34
The NZIA acknowledges the WGIII findings, and in particular WGIII’s assessment
that in pathways that limit warming to 1.5°C (>50% likelihood) with no or limited
overshoot (C1 Category):35
◾ global net GHG emissions are reduced from 2019 levels by 43% [34–60%] in
2030; and
◾ global net CO2 emissions are reduced compared to modelled 2019 emissions
by 48% [36–69%] in 2030.36
The NZIA also acknowledges the WGIII finding that:
◾ Net-zero GHGs is reached between 2095–2100 [2050–infinity] with only half of
the underlying C1 pathways leading to net-zero GHGs by 2100;37 and
◾ Net-zero CO2 is reached between 2050–2055 [2035–2070] in all pathways
across the C1 Category.38
When deriving an emissions reduction range (whether GHG or CO2) from the latest
IPCC report C1 Category, the 5th–95th or 25th–75th (interquartile) percentile inter-
vals of scenarios are cited within the category. A broader range (5th–95th percen-
tile) reflects a greater number of modelled scenarios and therefore considers a
wider range of possible projected outcomes. A narrower range (25th–75th percen-
tile / interquartile) reflects a smaller number of modelled scenarios and therefore
considers a more-restricted range of possible projected outcomes, with a tighter
distribution around the median. Both approaches have been adopted by the IPCC,

33 ipcc.ch/working-group/wg3/
34 ipcc.ch/report/ar6/wg3/
35 "Category C1 comprises modelled scenarios that limit warming to 1.5°C in 2100 with a likelihood of greater
than 50%, and reach or exceed warming of 1.5°C during the 21st century with a likelihood of 67% or less. In this
report, these scenarios are referred to as scenarios that limit warming to 1.5°C (>50%) with no or limited over-
shoot. Limited overshoot refers to exceeding 1.5°C global warming by up to about 0.1°C and for up to several
decades” (Footnote 49, WGIII Report).
36 Please see C.1.1 and C.1.2 of WGIII Report. The percentage cited for GHG emissions and CO2 emissions respec-
tively is the projected median percentage reduction of pathways in the year across the scenarios compared to
modelled 2019, with the 5th–95th percentile interval provided in square brackets.
37 Under the C1 category, net-zero GHGs is not strictly required in all underlying pathways that limit warming to
1.5°C (>50% likelihood) with no or limited overshoot. Only 50 out of the 97 pathways of the C1 category lead
to net-zero GHGs by end of the century (sub-category C1a), whereas 47 C1 pathways never reach net-zero
GHGs (sub-category C1b). In sub-category C1a, net-zero GHGs is reached between 2070-2075 [2050-2090]. This
represents the “earliest” projection of when net-zero GHGs are reached and requires net-negative CO2 emissions
to compensate for residual non-CO2 emissions. Note that C1, C1a and C1b are all aligned to pathways that limit
warming to 1.5°C (>50% likelihood) with no or limited overshoot. Please see WGIII AR6 Table SPM.2.
38 Please see Table SPM.2 of the WGIII Report. The range cited is the projected median 5-year interval at which
net-zero is achieved, with the 5th–95th percentile interval in square brackets.

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 who also assess the validity of all scenarios (including underlying assumptions and
model projections) within each category prior to their inclusion.39
For the purposes of the WGIII Report, GHG emissions include carbon dioxide
(CO2)40, methane (CH4), nitrous oxide (N2O), and fluorinated gases comprising
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6),
as well as nitrogen trifluoride (NF3). The IPCC definition of GHG emissions aligns
with the definition of GHGs as adopted by the NZIA. GHGs are typically combined
by for the purposes of reporting in "CO2 equivalents" (CO2e) to standardise the
climate effects of the various GHGs. Reporting in CO2e therefore refers to all
underlying GHG emissions produced by a company in the real economy.
The NZIA also acknowledges that:
◾ where CO2e is reported for a company by third party data providers, it can be
assumed, but is not guaranteed, that all relevant GHGs are captured in the
CO2e reported figure;
◾ the dominant GHG is CO2. Other significant non-CO2 GHGs include CH4 and N2O
which are primarily caused by a limited number of sectors; CH4 emissions by
agriculture (livestock, manure, rice cultivation), energy (venting, production and
transmission losses), and waste (landfills, wastewater), and N2O emissions
by agriculture (soils).41 Averaged across sectors, global net CH4 emissions
are reduced from 2019 levels by 34% [21–57%] in 2030 for pathways limit-
ing warming to 1.5°C—though with significant differences between relevant
sectors, e.g. median CH4 reductions of 62% for energy, versus 12% for agricul-
ture, forestry and other land use (AFOLU)42—whereas only limited near-term
reductions of global net N2O emissions are expected by 2030.43
◾ GHG emissions reduction pathways and CO2 emissions reduction pathways are
not identical due inter alia to the different concentrations of GHGs in the atmo-
sphere, the different warming potential of the various GHGs, and the current
availability of technology to limit further GHG emissions and/or remove GHGs
from the atmosphere.
Given the complexities involved with steering re/insurance portfolios in line with
the current state of science described above, the fact that the scientific findings
evolve over time, and the challenges in full coverage of data per GHG type, the
NZIA intends to consult a scientific advisory group for further guidance on the
interpretation of the latest science with respect to defining an appropriate emis-
sion reduction range.

39 Table SPM.2 of WGIII Report provides the 5th-95th percentile interval for GHG and CO2 ranges, however in past
reports (IPCC, 2018: Global Warming of 1.5°C (Special Report)) ranges were provided by the IPCC at interquartile
intervals (see paragraph C1 of the Special Report in respect of CO2 emissions reduction ranges). Interquartile
ranges are also adopted in WGIII Report in specific circumstances—please see paragraphs C.3.2 and C.8.1.
40 CO2 includes CO2 from fossil fuel combustion and industrial processes (CO2-FFI); net CO2 emissions from land
use, land-use change and forestry (CO2-LULUCF).
41 World Resources Institute, June 2022. wri.org/data/world-greenhouse-gas-emissions-2019
42 See WGIII AR6 report Figure 6.26 on page 6-99 for energy, and Figure 3.27 on page 3-65 for AFOLU.
43 Please see paragraph C.1.2 of the WGIII AR6 Report for CH4 and Figure SPM.5 for N2O (the long-term reduction
cited in C.1.2 is 20% (-5 to +55%) by 2050).

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NZIA members are committed to supporting the real economy in achieving the 1.5°C
objective—this remains the central purpose of the NZIA Commitment. The NZIA
assumes that all IPCC’s AR WGIII C1 scenarios are feasible, including scenarios where
net zero for non-CO2 GHGs are achieved later than 2050 but still result in a maximum
1.5°C pathway with no or limited overshoot by 2100.
The NZIA has therefore decided to align its overarching emissions reduction near-
term target to the IPCC’s AR6 WGIII C1 5th and 95th percentile interval for net-global
GHG (CO2e) emissions reductions by 2030 (relative to 2019). By choosing the over-
arching emissions reduction target type as defined in this Protocol, NZIA members
independently set their own near-term IAE reduction targets in line with a range of
34% to 60% reduction for the period of 2019 to 2030 for IAEs covered in their respective
portfolio target boundaries. NZIA members may also choose, at their discretion, to adopt
a target that is greater than 60%.
The NZIA overarching emissions reduction target range remains aligned to other UN-con-
vened net zero alliances (including the Net-Zero Asset Owner Alliance) in that the IPCC’s
AR6 WGIII C1 scenarios are consistently used across alliances as a basis for setting the
overarching emissions reduction ranges. The intention is that the NZIA will continue to
be guided by the latest recommendations of the IPCC.
Where NZIA members wish to adopt a consistent range across activities that fall under
more than one UN-convened net zero alliance, they are free to do so insofar as the
minimum threshold of 34% is satisfied in respect of their underwriting portfolio. NZIA
members may also choose, at their discretion, to adopt a target that is greater than 60%.
In setting their near-term overarching reduction target, NZIA members shall also
disclose the reasons for adopting their nominated target.
Members using a base year later than 2019 may recalculate the percentage for their first
near-term targets to 2030, using the following annualisation formula:

where ry is the rate to be used for base year y, or make use of Table 2 below that shows
pre-calculated rates for the lower and upper bound of the NZIA overarching emissions
reduction range.

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Table 2: Emissions reduction range for various base years
Base 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
year
Lower 34% 31% 29% 26% 23% 20% 17% 14% 11% 7.3% 3.7%
bound
Upper 60% 57% 53% 49% 44% 39% 34% 28% 22% 15% 8.0%
bound

Members may, within the given range, set separate overarching reduction targets for
sub-portfolios.
If a member's IAEs that are subject to the overarching emissions reduction target type
have been calculated using different accounting methods, the member shall set, within
the given range, separate targets for each part of the IAEs where a different accounting
method has been used.44 For example, a member plans to use the overarching emis-
sions reduction target type for IAEs that were partly derived using accounting method
A ("IAE-A") and partly using accounting method B ("IAE-B"). Then it will set a target for
the IAE-As (e.g. "43% reductions by 2030") and a separate target for the IAE-Bs (e.g. also
"43% reductions by 2030", or a different ambition level).
NZIA members may also choose between intensity-based or absolute overarching emis-
sions reduction targets, subject to Section 4.1.1, "Level of ambition for emissions reduc-
tion targets" and under the constraint that an intensity-based overarching emissions
reduction target shall result in absolute emissions reductions in line with the minimum
threshold of 34%.45 NZIA members may also choose, at their discretion, to adopt an
intensity-based overarching emissions reduction target that results in absolute emis-
sions reductions greater than 60%.

44 Rationale: different IAE accounting methods use different formulas to derive the attribution factor. Different
formulas can result in attribution factors that are, different from each other by orders of magnitude, e.g. 0.1%,
1%, 10%. The attribution factor is then multiplied with the insured's emissions to calculate the insurance-associ-
ated emissions (IAEs). Depending on the IAE accounting method, the same amount of real-economy emissions
could yield IAEs that are different by orders of magnitude. If these differently calculated IAEs are aggregated
under a single overarching IAE reduction target, the part of the IAEs that were calculated with the highest
attribution factor would dominate the aggregated IAEs and would consequently attract most of the decarboni-
sation efforts. Decarbonisation efforts on the part of the IAEs that were calculated with the lowest attribution
factor would have a smaller relative impact on the aggregated IAEs and could thus be deprioritised or omitted.
A concrete example follows from the PCAF Insurance-Associated Emissions Standard: the standard employs
two different attribution formulas to calculate IAEs (one for commercial lines, and one for personal motor lines
of business), resulting in attribution factors that are different by one to two orders of magnitude.
45 For further information regarding the purpose, description and benefits of “absolute” and “intensity” metrics,
please see Chapter 6 of the PCAF Insurance-Associated Emissions Standard.

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Each member should independently assess:
i. the viability of their near-term IAE target against their reported IAEs and the latest
science; and
ii. how it can best achieve the near-term IAE reduction.
Notwithstanding the overarching emissions reduction objectives cited above, the NZIA
is an international alliance of global re/insurance companies; each NZIA member has a
unique portfolio composition with respect to lines of business and industry sectors. In
addition, NZIA members provide risk transfer solutions to a wide range of re/insureds
based all over the world, from individuals (in their personal capacity) to sole traders,
SMEs, large private companies and publicly-listed companies.
Noting the above, the IAE of a given re/insurer, in the broader context of setting an over-
arching near-term absolute emissions reduction target that is aligned with the global
1.5°C climate goal, should reflect this reality. Further noting that the IPCC scenarios
describe the global average, the resulting emissions reduction pathways need to be
guided by the principle of equity and common but differentiated responsibilities and
respective capabilities, in light of different national circumstances, to ensure a just
transition.46 47 Taken together, not all re/insureds are strictly required to decarbonise
between 34% and 60% by 2030 under 1.5°C-aligned pathways—some may need more
time, some may be able to decarbonise faster. Therefore, not all re/insurance portfolios
will be required to decarbonise at that same rate. A narrow, prescriptive decarbonisation
range would therefore not be appropriate. It is acknowledged that some re/insurers have
different portfolio exposures. For example, more exposure to low-carbon intensity may
potentially justify a different range—this has not yet been assessed.
The NZIA acknowledges that re/insurers face a number of challenges when setting
quantitative targets at an overarching portfolio level, and that these challenges will
impact NZIA members to varying degrees:
◾ Limited emissions data quality across re/insurers’ portfolios: NZIA members could
be providing risk transfer solutions to a wide range of re/insureds globally and of
varying sizes (by revenue). Re/insurer portfolios may be disproportionately weighted
(by client type) to smaller non-listed companies and/or individuals and cover a larger
number of clients where there is currently limited or low data quality; this may not be
the case, to the same degree, for investment portfolios. NZIA members expect better
data availability, where possible, and when provided by the re/insured’s (i.e. the play-
ers in the real economy), over the coming years to enable credible tracking against
targets and real-world emissions reduction.

46 Please see the Recitals to the Paris Agreement.

47 Climate Change 2022: Mitigation of Climate Change. Working Group III Contribution to the IPCC Sixth Assess-
ment Report—please see Section: D “Linkages between mitigation, adaptation, and sustainable development”.

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◾ Nature of the re/insurance relationship: re/insurance contracts create no ownership
or transfer of equity/loan and do not result in financial or direct operational control of
re/insureds.48 In some cases, the client may not even be a company. This is important
as re/insurers rely on having an ongoing relationship to support and encourage clients
on their transition.
The NZIA also acknowledges that certain non-CO2 GHGs will need to be reduced signif-
icantly in the lead up to 2050, notwithstanding that not all non-CO2 GHGs are strictly
required to reach net zero by 2050 under a 1.5°C-aligned pathway. The NZIA intends to
provide members with additional guidance on non-CO2 GHGs in future versions of the
Protocol (to the extent this is not appropriately captured by refinements to the sectoral
decarbonisation pathways), taking into account the latest available scientific knowledge,
sectoral considerations, and the availability of reliable emissions data separated out
from CO2e into the constituent GHGs.

4.1.4 Sectoral decarbonisation approach (SDA)

As an alternative to the potentially sector-wide overarching emissions reduction target
type, the sectoral decarbonisation approach (SDA) uses sector-specific emissions
reduction pathways for target design. In choosing the SDA, NZIA members inde-
pendently set their own targets to have the physical emissions intensity49 of their (sub)
portfolio in a certain economic sector converge over time with a 1.5°C-aligned science-
based decarbonisation pathway for that same sector. This target type is described as
the "Portfolio SDA" approach in SBTi's Financial Sector Science-Based Targets Guid-
ance.50 The SBTi is one, albeit not the only, institution that publishes science-based,
sectoral decarbonisation pathways that are a prerequisite for the SDA target type.
The definition of target pathways by SBTi is based on a combination of science and
judgements in line with SBTi’s published principles—it is not influenced by the broader
policy objectives of companies and/or other organisations.
The SBTi is partnering with the NZIA to provide guidance and develop criteria for consider-
ation in relation to SDAs for IAEs and target pathways suitable for an underwriting context.
A formal assessment of the proposed emissions reduction target types by SBTi takes
time and has not yet been conducted; however, this Protocol orients towards SBTi's FINZ
Standard and near-term target-setting guidance for the financial sector as appropriate for
the proposed target type. Future versions of the Protocol will incorporate feedback from
SBTi on SDAs and target pathways, subject to applicable laws, rules and regulations.51

48 For further information regarding the differences between “financed emissions” and “insurance-associated emis-
sions”, please see Chapter 4 of the PCAF Insurance-Associated Emissions Standard.
49 Physical emissions intensity = Re/insured's absolute emissions divided by a physical output value, expressed
in e.g. tCO2e/MWh, tCO2e/ton product produced, tCO2e/liter product produced. This is different to economic
emissions intensity which is defined as re/insured’s absolute emissions divided by a monetary unit reflecting
the insured's size of business, expressed in tCO2e/€M of insured’s revenue or asset value.
50 See sciencebasedtargets.org/resources/files/Financial-Sector-Science-Based-Targets-Guidance.pdf (pages 7
and 31)
51 For further information on how SBTi validates target pathways, please refer to the SBTi “Pathways to Net-Zero:
SBTi Technical Summary” (sciencebasedtargets.org/resources/files/Pathway-to-Net-Zero.pdf) and associated
documentation on the following (non-exhaustive) sectors for guidance: Aluminium; Apparel and footwear; Avia-
tion; Buildings; Chemicals; Cement; Financial institutions; Forest, land and agriculture; Information and commu-
nications technology; Maritime; Oil and gas; Power; Steel; and Transport.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 27

Contents | Recommended target types
Notwithstanding this, NZIA members may use the SDA target type to set targets as they
deem appropriate.
Where this target type has been selected by an NZIA member, the SDA targets they set
should meet the following conditions:
◾ Target level of ambition: use of sector-specific methods for 1.5°C pathways which
are internationally recognised methodologies/pathways for SDAs. Fulfilment of SDA
targets means that the emission intensity of the part of the portfolio defined by the
portfolio target boundary has converged with the 1.5°C pathway.
◾ Portfolio target boundary: this should be individually set by the NZIA member (c.f.
Minimum requirements for target setting in Section 2, "How to use this Protocol").
◾ Timeframe: the first SDA targets cover a minimum of five (5) years from the base year,
and a maximum duration that does not reach beyond 2030, i.e. the latest possible
target year for NZIA members’ first target(s) under this Protocol, as defined in Section
3.4, "Timing of target setting". Subsequent SDA targets cover a minimum of five (5)
years and a maximum of ten (10) years.

4.2 Engagement target category

In realising real-world GHG emission reductions, re/insurers engaging with clients on
their net-zero transition is a key lever for re/insurers to advance their own net-zero trans-
formation. Such engagement may also support re/insureds in their own net-zero tran-
sitions, encourage innovation, and produce related benefits for the customers of the re/
insureds, as well as the re/insureds themselves.
The Protocol suggests two possible target types under the engagement target category,
with each NZIA member being free to unilaterally choose which of these it will select
when setting its target(s):
1. The portfolio coverage approach (PCA) that seeks to increase the share of clients
in a re/insurer’s portfolio who have set their own science-based targets (SBTs);
and/or
2. The focused engagement target type under which a re/insurer engages with
selected clients regarding their transition plans and decarbonisation strategies.
There are two key differences between the two engagement target types: the PCA would
be appropriate for commercial client portfolios, while the focused engagement target
type is open to clients of both commercial and personal lines. Secondly, the measure of
success for the PCA is "outcome-based"; namely, how many clients in a portfolio have
actually set their own SBTs. However, for the focused engagement target type, success
can be measured in terms of either an outcome or simply in recognising the re/insurer's
efforts (that may or may not result in a specific outcome).
Under either target type, it will be important to recognise the transition journeys that the
clients (and their industry segments) are on, and their role in the wider global economy.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 28

Contents | Recommended target types
This will allow NZIA members to support a tailored transition that recognises the specific
challenges each client and industry segment faces in transitioning.

4.2.1 Portfolio coverage approach (PCA)

By choosing the PCA, NZIA members independently set their own targets in relation
to the proportion of their re/insurance clients that have established their own science-
based targets (SBTs) as part of their net zero transition journeys. These targets shall be
such that an NZIA member is on at least a linear path to 100% portfolio target boundary
coverage (i.e. 100% of clients having set SBTs supporting a net-zero transition) by 2040.
This target type is described as the "SBT Portfolio Coverage Approach" in SBTi's Financial
Sector Science-Based Targets Guidance.52 Note that SBTi is not the only organisation to
publish guidance on SBTs or to validate SBTs. Accordingly, a client can set SBTs that are
validated by SBTi or any other competent third party.
Where this target type has been selected by an NZIA member, the portfolio coverage
targets they set should meet the following conditions:
◾ Target level of ambition: have a proportion of re/insurance clients (defined via the
portfolio target boundary) to set their own third party-approved science-based targets
such that this client portfolio is on at least a linear path to 100% SBT-coverage by
2040. By 2030, the SBT-coverage can accordingly be less than 100%. For example, an
NZIA member starting with 10% SBT-coverage among its clients subjected to a PCA
target in 2020 would need to encourage its clients to adopt SBTs such that it would
increase the proportion of its client portfolio with SBT-coverage by 4.5% per year (90/
(2040 - 2020) = 4.5) and reach at least 55% (10 + [10 x 4.5] = 55) coverage by 2030.
Fulfilment of PCA targets means that the SBTs of all of re/insurance clients that are
covered by the portfolio target boundary have been published by these clients and
approved by a competent third party.
◾ Portfolio target boundary: individually set by each NZIA member (c.f. Minimum
requirements for target setting in Section 2, "How to use this Protocol").
◾ Target time frame: fulfil the first portfolio coverage target(s) by 2030 at the latest,
subsequent portfolio coverage targets within a maximum of five (5) years from the
date that the targets are published.

4.2.2 Focused engagement target type

Focused engagement targets may be set for commercial clients, personal line clients,
or both (subject to the LoBs covered by the Protocol, as per Section 3, "General scope of
the Protocol" and the individually set portfolio target coverage).

52 See sciencebasedtargets.org/resources/files/Financial-Sector-Science-Based-Targets-Guidance.pdf (pages

7 and 32)

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 29

Contents | Recommended target types
Focused engagement targets for commercial lines
By choosing the focused engagement target type for commercial lines, NZIA members
independently set their own targets to engage with selected commercial clients (defined
by the portfolio target coverage), supporting them in their efforts to:
◾ develop and implement credible transition plans in line with a 1.5°C net-zero pathway;
and/or
◾ mitigate and manage possible transition risks; and/or
◾ strengthen their individual efforts to lower their own GHG emissions.

Table 3: Actions and possible metrics (non-exhaustive) to be considered for focused

engagement targets for commercial lines

Action Possible metrics (non-exhaustive) Examples (non-exhaustive)

Engagement Number of client engagements where the Disclosure of transition plans including
for client's net-zero relevant information was targets and progress reports; GHG emis-
information requested sions; Net-zero alignment status; etc.
Engagement Number of client engagements where Measures to improve energy effi-
with net-zero relevant information was ciency; Transition risk advisory, etc.
information provided
Engagement Number of clients which have set specific ◾ Client plans for reducing emissions
with a carbon reduction objectives. with their fleet, such as switch to
purpose Example topic areas include: an EV fleet, use of telematics, route
optimisations, etc.
◾ Transportation/fleet-related emissions
◾ Client set percent reduction in meth-
◾ Methane gas emissions
ane gas emissions within a specific
◾ Emissions associated with Scope 2,
timeframe
energy consumption
◾ Client set capital expenditure
◾ Overall net-zero or other transition
(CapEx) plan(s) dedicated to energy
commitment
savings measures; client commit-
Percent change of clients, or absolute, ment to 100% renewable power
who report and/or improve reporting of sourcing by a defined date, etc.
Scope 1 and 2, and potentially Scope 3, ◾ A net-zero, 1.5°C pathway, and/or
emissions data for their own operations. other transition commitment of an
Example topics include: industrial client
◾ Target date for first reporting of emis- ◾ Member reporting on number of (or
sions or expansion of reporting scope percentage of engaged) clients that
(e.g. more entities, additional scopes, have set or expanded emissions
additional parts of supply chain) reporting
◾ Objective/action to improve scope ◾ Member reporting on number of (or
reporting (e.g. working with suppliers, percentage of engaged) clients who
improvement for own operations) set an objective to improve or actu-
Objective/action to publicly disclose ally improved emissions reporting
emissions through a recognised frame- ◾ Member reporting on number of
work/organisation (e.g. TCFD, CDP, GHG (or percentage of engaged) clients
Protocol) who set an objective to or actu-
ally publicly disclosed emissions
through a recognised framework

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 30

Contents | Recommended target types
Focused engagement targets for personal motor lines
By choosing the focused engagement target type for personal motor lines, NZIA members
independently set their own targets to engage with personal motor clients (defined by the
portfolio target coverage), supporting them in their efforts to lower their individual road
transportation-related GHG emissions (e.g. by transitioning to electric vehicles; the use
of other forms of low or zero-emission transportation; reduction in vehicle use; adopting
eco-driving practices; or adopting more sustainable repair and replacement options).

Table 4: Actions and possible metrics (non-exhaustive) to be considered for focused

engagement targets for personal motor lines

Action Possible metrics (non-exhaustive) Examples (non-exhaustive)

Engagement with 1. Number of engagement Provide estimated CO2e asso-

information programmes/campaigns where ciated with the policyholder’s
information about road transpor- driving habits
tation-related GHGs is shared with Provide information about bene-
the clients/policyholders, along with fits of walking/biking/scooting
possible measures to reduce individ- in the location where the policy-
ual policyholder transportation-re- holder is located, such as bike
lated emissions; storage/lock locations, walking
or paths, etc.
2. Measure number of clients/policy- Provide information about EV/
holders covered by the engagement plug-in hybrid infrastructure
support, such as charging loca-
tion stations in the area

4.3 Other targets category: re/insuring the

transition target type53
Alongside emissions reduction and engagement target types, the Protocol suggests an
additional target type under the category "Other targets", which addresses the opportu-
nity side of the net-zero transition. Re/insurers can contribute to the latter by offering
re/insurance solutions to activities that avoid, reduce, or remove emissions, or that help
cope with the negative impacts of climate change.
By choosing the re/insuring the transition target type, NZIA members independently set
their own targets to grow their business with climate solutions.

53 "Transition insurance" targets are not presently defined in SBTi's Financial Sector Guidance and this is an area
of expected future collaborative work between the NZIA and SBTi.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 31

Contents | Recommended target types
Definition of climate solutions: In the context of re/insuring the transition, the Protocol
defines a "climate solution" as any re/insurance product or service that covers economic
activities considered to contribute towards climate change mitigation,54 or to a combina-
tion of both climate change mitigation and climate change adaptation.55
Economic activities making a contribution to climate change mitigation and/or adaptation
must not cause significant harm to remaining environmental or social objectives.
Re/insuring the transition targets may be set for commercial lines, personal lines, or both
(subject to the LoBs covered by the Protocol, as per Section 3, "General scope of the Proto-
col" and the individually set portfolio target coverage).
For commercial lines, re/insuring the transition targets may address, among other examples:
◾ Energy efficiency
◾ Low/zero-emission power and fuels
◾ Circular economy
◾ Sustainable claims options that produce lower or zero emissions (e.g. sustainable
repairs and replacement options, partner networks)
◾ Negative-emission technologies
◾ Natural climate solutions, etc.
For personal motor lines, re/insuring the transition targets may address, among other
examples:
◾ Low/zero-emission forms of transportation
◾ Products that incentivise less vehicle use, mileage and emissions (e.g. usage-based
coverage)
◾ Sustainable claims options and roadside assistance that produce lower or zero emis-
sions (e.g. sustainable repairs and replacement options), etc.
The NZIA acknowledges that the above lists of examples are non-exhaustive. Technol-
ogies and economic activities relating to climate change mitigation and/or adaptation
will evolve over time.
Metrics: NZIA members may set quantitative re/insuring the transition targets in the
form of a relative or absolute increase preferably of their revenue or premiums deriving
from climate solutions (see definition above), or alternatively the number of their clients
that make use of climate solutions.

54 Climate change mitigation is achieved through activities that prevent greenhouse gases from entering the atmo-
sphere or remove and store carbon dioxide already present in the atmosphere.
55 Climate change adaptation results from risk management and loss prevention measures that contribute to
enhancing adaptive capacity, building resilience, reducing vulnerability and incentivising preventive/adaptive
activities related to climate change impacts.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 32

Contents | Recommended target types
5. Target disclosure and reporting

As a component contributing to attaining the NZIA's objectives outlined above, NZIA

members have committed to make their targets public and report on their progress as
appropriate and in accordance with applicable laws, rules and regulations. This section
lays out a number of considerations on target disclosure and reporting, but notably not
about target validation. As described in Section 2, "How to use this Protocol", a compre-
hensive target validation process has not yet been formulated for this first version of the
Protocol. Such validation is anticipated to require the involvement of a competent third
party (e.g. SBTi). This will be considered for inclusion in the next version of the Protocol.

5.1 Disclosure of target(s) and their portfolio

boundary(ies)
NZIA members shall make their targets set under this Protocol publicly available accord-
ing to the timing described in Section 3.4, "Timing of target setting".
NZIA members shall disclose the individually set portfolio target boundaries alongside
each target, and explain the rationale of their choice, as described in Section 2.3, "Mini-
mum requirements for target setting".
In doing so, NZIA members must not share any competitively-sensitive information.

5.2 Reporting on actions and target progress

NZIA members shall report annually and publicly on their progress against all
published targets, including the actions and steps taken during the year to meet their
respective targets.
Each year, starting in 2024, the NZIA will publish a progress report which provides an
aggregate and by target type view of members’ independently set targets and global
progress accomplished during the year. NZIA members shall support the NZIA Secre-
tariat in preparing the progress report with respect to completeness and comprehen-
sion of the reported progress.
In doing so, NZIA members must not share any competitively-sensitive information.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 33

Contents | Target disclosure and reporting
5.3 Where to disclose and report
NZIA members shall use official channels for independent disclosure and reporting
(e.g. via their annual reports, sustainability reports, PSI disclosures, TCFD reports, CDP’s
annual questionnaire, their website or a standalone report). In addition, members shall
share their targets with the NZIA Secretariat when disclosing them, and the NZIA Secre-
tariat will publish all members’ targets on the NZIA website.
As above, such reporting must not involve disclosure of any competitively-sensitive infor-
mation.

5.4 Recalculation of targets

NZIA members should check the validity of their own target-related projections annually,
and consider a target recalculation, as necessary.
NZIA members should recalculate their own targets to reflect significant changes rele-
vant to them that would compromise the relevance and consistency of their existing
target. The following list includes examples of changes that should trigger a target recal-
culation:
◾ Updates in the latest climate science that would affect the target ambition level;
◾ Structural changes in the re/insurer (e.g. mergers, acquisitions, divestments,
outsourcing and insourcing);
◾ Changes in calculation methodologies, improvements in data accuracy, or discovery
of significant errors;
◾ Expansion in scope of accounting standards for insurance-associated emissions;
◾ Changes in the categories or activities (e.g. lines of business) included in the Scope 3
inventory.
Recalculated targets shall automatically comply with the latest available version of the
Protocol.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 34

Contents | Target disclosure and reporting
6. Roadmap to Version 2
(and beyond) of the Protocol

Many components of this Protocol face limitations. Consequently, the NZIA intends that
this Protocol will be further developed, expanded, and refined over time.
The NZIA has identified four priority areas for further development in future versions of
the Protocol:
◾ Target validation
NZIA members have taken a deliberate decision not to incorporate an NZIA target vali-
dation process within this first version of the Protocol. Future versions of this Protocol
will consider the set-up of such a process, which might need the involvement of a
competent third party. Details of potential alignment with SBTi's net-zero standard
for financial institutions (FINZ) need to be evaluated as part of future developments.
◾ Scope expansion
As it is the ambition of the NZIA and its members for the methodology in this Protocol
to ultimately cover a broad scope of insurance and reinsurance portfolios, recom-
mended expansions to the general scope of the Protocol will be considered for inclu-
sion in the Protocol over time. Examples include:
◽ Target horizon: from near-term to long-term and net-zero target setting
◽ Emissions: insurance-associated emission removals
◽ Business in scope: additional LoBs, e.g. project-based lines of business (in partic-
ular engineering lines including construction all-risks, erection all-risks), non-motor
personal lines insurance, treaty reinsurance
◽ Value chain: intermediaries, claims handling, etc.
The main limitation in this respect is the availability of a common accounting and
reporting standard and data. For instance, additional LoBs can only be included
once the common accounting and reporting standard and data are available. This
links the expansion of the Protocol closely to future developments of the PCAF
Insurance-Associated Emissions Standard.56
◾ Refinement of target types
Existing recommended target types will be considered with respect to further develop-
ments and refinements, for instance by adding more quantitative aspects, once appro-
priate methodologies, metrics and data become available. The feasibility and inclusion
of additional target types will be considered. In addition, it is intended that the ambi-

56 carbonaccountingfinancials.com/files/downloads/pcaf-standard-part-c-insurance-associated-emis-
sions-nov-2022.pdf

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 35

Contents | Roadmap to Version 2 (and beyond) of the Protocol
 tion level of the Protocol will be considered, especially with respect to the minimum
requirements for target setting; the quantitative IAE reduction targets (in light of evolv-
ing science and the need to break down overarching targets to the sector level), and
potential minimum requirements for focused engagement efforts and/or outcomes.
◾ Portfolio target boundary
Future versions of this Protocol will consider the inclusion of certain quantitative
minimum ambition levels for the portfolio target boundary for a given target type
(e.g. establishing the proportion of re/insurer’s overall portfolios that will be covered
by the target setting, where an IAE methodology exists). For the avoidance of doubt,
such quantitative minimum ambition levels are not expected to extend to individual
economic sectors.
The next version of this Protocol shall be published at the latest by 31 December 2024.
The extent of the revision will depend on the availability of relevant standards and
science-based data.
For the time being, this Protocol contains adequate and sufficient target setting elements
for each NZIA member to individually start or propel their net-zero re/insurance journey.

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 36

Contents | Roadmap to Version 2 (and beyond) of the Protocol
Acknowledgements

This Protocol was written by the members of the UN-convened Net-Zero Insurance
Alliance (NZIA) Target-Setting Working Group.

Members of the NZIA Target-Setting Working Group:

Laura Albarracin (Allianz); Jessica Beakbane (Allianz); Ralf Heintges (Allianz); Laurent
Hernandez (Allianz); Klaus Schlobach (Allianz); Annamaria Tratzmiller (Allianz); Philip van
Heesch (Allianz); Esther Egeter (ASR Nederland); Annelien Van Meer (ASR Nederland);
Ben Carr (Aviva); Sam Day (AXA XL); Aurélie Fallon Saint-Lô (AXA); Andrew Macfarlane
(AXA XL); Sheri Wilbanks (AXA); Bruno Lepoivre (Crédit Agricole); Gabriel Plantier (Crédit
Agricole); Sugiha Densink-Viehmann (Munich Re); Tanja Pacholski (Munich Re); Marco
De Tomi (Generali); Michele Ferian (Generali); Alberto Macián (Generali); Alessandra
Querin (Generali); Silvia Santarossa (Generali); Tomás Canas da Costa (Hannover Re);
Tim Fritsche (Hannover Re); Svenja Seefeldt (Hannover Re); Stephen Everett (IAG); Darren
Maher (IAG); Lee McDougall (IAG); Félix Condés (MAPFRE); Sara Fernandez (MAPFRE);
Cesar Lopez (MAPFRE); Yasumasa Kanie (MS&AD); Hajime Nakano (MS&AD); Keisuke
Takeda (MS&AD); Ayako Yamaguchi (MS&AD); Heike Markus (Munich Re); Julia Schlüter
(Munich Re); Lorenz Stör (Munich Re); Thomas Tschiatschek (Munich Re); Harold Hendriks
(NN Group); Naomi Tronco (NN Group); Felix van Enst (NN Group); Irene Lai (QBE); Jack
Longden (QBE); Boris Nadenic (QBE); Frederic Biondi (SCOR); David Cosserat (SCOR);
Pauline des Vallières (SCOR); Neil Franklin (SCOR); Nigel Riley (SCOR); Adam Ichikawa
(Sompo); Takanori Ono (Sompo); Kosaku Matsunaga (Sompo); Arafat Amin (Swiss Re);
Alejandro Daleo (Swiss Re); Marianna Giannakou (Swiss Re); Christoph Nabholz (Swiss
Re); Sten Rasmussen (Swiss Re); Mischa Repmann (Swiss Re); Daniel Staib (Swiss Re);
Gabriel Webber Ziero (Swiss Re); Lasse Wallquist (Swiss Re); Martin Weymann (Swiss Re);
John Campbell (Tokio Marine); Craig Judd (Tokio Marine); Mina Kajiyama (Tokio Marine);
Kei Kato (Tokio Marine); Masaaki Nagamura (Tokio Marine); Takahiro Ono (Tokio Marine);
Ryusuke Yoshida (Tokio Marine); Thomas Baer (Zurich Insurance Group); Gabrielle Durisch
(Zurich Insurance Group); Daniel Eherer (Zurich Insurance Group).

NZIA Target-Setting Working Group Lead:

Mischa Repmann (Swiss Re).

NZIA Target-Setting Working Group Focus Area Leads:

Klaus Schlobach (Allianz); Annelien Van Meer (ASR Nederland); Sheri Wilbanks (AXA);
Alessandra Querin (Generali); Thomas Tschiatschek (Munich Re); Naomi Tronco (NN
Group); Irene Lai (QBE); Daniel Eherer (Zurich Insurance Group).

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 37

Contents | Acknowledgements
NZIA Target-Setting Working Group Coordinator:
Patricia La Vista (UNEP PSI).

UNEP Principles for Sustainable Insurance (PSI) Team:

NZIA Project Owner and Supervisor: Butch Bacani (UNEP PSI)
NZIA Project Manager: Patricia La Vista (UNEP PSI)
NZIA Project Coordinators: Diana Diaz (UNEP PSI); Emily Banzet (UNEP PSI); Lilia
Tchemchirova (UNEP PSI).

The NZIA Steering Group provided guidance and feedback on the Protocol:
Renaud Guidée (AXA, Chair of the NZIA); Thierry Léger (Swiss Re, Chair of the NZIA
Metrics & Targets Workstream); Roland Umbricht (Allianz); Owen Morris (Aviva); Franco
Urlini (Generali); Stefan Golling (Munich Re); Jean-Paul Conoscente (SCOR); Hayley
Robinson (Zurich); Butch Bacani (UNEP PSI); Eric Usher (UNEP FI).

Legal advisors:
This paper was also reviewed by members of the NZIA Antitrust Working Group, and the
independent legal advisor, Norton Rose Fulbright (NRF).

The Science Based Targets initiative:

The report was elaborated in partnership with the Science Based Targets initiative (SBTi),
and we would like to thank the following stakeholders for their contributions: Nate Aden
(WRI, SBTi); Hunter Bell (WRI, SBTi); Howard Shih (WRI, SBTi).

UN-convened Net-Zero Insurance Alliance Target-Setting Protocol 38

Contents | Acknowledgements
About UN Environment Programme’s Principles for Sustainable
Insurance Initiative
Endorsed by the UN Secretary-General and insurance industry CEOs,
the Principles for Sustainable Insurance (PSI) serve as a global frame-
work for the insurance industry to address environmental, social and
governance (ESG) risks and opportunities—and a global initiative to
strengthen the insurance industry’s contribution as risk managers, insur-
ers and investors to building resilient, inclusive and sustainable commu-
nities and economies on a healthy planet. Developed by UN Environment
Programme’s Finance Initiative, the PSI was launched at the 2012 UN
Conference on Sustainable Development (Rio+20) and has led to the
largest collaborative initiative between the UN and the insurance indus-
try. As of December 2022, more than 230 organisations have joined the
PSI, including insurers representing about one-third of world premium
and USD 15 trillion in assets under management, and the most extensive
global network of insurance and stakeholder organisations committed
to addressing sustainability challenges. The PSI also hosts the Net-Zero
Insurance Alliance and the Sustainable Insurance Facility of the Vulner-
able Twenty Group of Finance Ministers (V20).
Learn more at:
unepfi.org/psi
unepfi.org/net-zero-insurance
v20sif.org/

unepfi.org/psi

[email protected]

/UNEPFinanceInitiative

United Nations Environment Programme Finance Initiative

@PSI_Initiative