Net Zero Insurance Alliance drops all requirements to set or publish targets

The Net-Zero Insurance Alliance has dropped all requirements for members to set or publish any greenhouse gas emission-reduction targets.

The drastic change means a major revamp of NZIA's rules and comes just weeks after a mass exodus of its most prominent members.

The NZIA, which is down to 12 members from its peak of 30, has decided to ease its rules in a bid to keep the coalition going, insiders reportedly said.

"Going forward, NZIA member companies have no obligation to set or publish targets: rather, individual member companies will be responsible and publicly accountable for any targets they set, the methodologies used to set them, the timeline on which they decide to publish any targets, and the progress they are making," the UN Environment Programme said in a statement seen by Net Zero Investor.

The NZIA is one of several United Nations-backed alliances that aim to bring together financial institutions to implement efforts towards reaching net zero carbon emissions by 2050. 

However, the alliance has come under pressure in recent months, primarily from Republican politicians in the U.S., who accuse the coalition of violating antitrust rules and driving up insurance costs. 

Fearing regulatory and litigation issues, more than half of NZIA's members quickly exited the NZIA since attorneys general from nearly two dozen Republican-controlled U.S. states sent a letter in May in which they threatened the insurers with legal action.

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