The Insurance Council of Australia (ICA) had recently launched a paper that outlines “the way insurers can achieve net zero emissions for their operations by 2030 and across the entirety of insurers’ activities by 2050.”
Titled “Towards a Net Zero and Resilient Future”, the paper proposes that insurers can achieve net-zero by 2030 through investing in energy efficiency, rooftop solar for office buildings, and transitioning corporate fleets to electric.
The report also states that “Similarly, the industry should continue to provide essential underwriting services, including workers’ compensation and fire and indemnity cover, ensuring insurers continue to play their role to keep all Australians safe.”
“As a financial service focused on risk, insurance is already bearing the cost of worsening extreme weather driven by climate change,” said ICA CEO Andrew Hall.
“The total cost of these extreme weather events is forecast to be unlike anything we have experienced, with climate-related extreme weather events expected to cost $39.3 billion a year by 2050,” added Mr. Hall.
“Insurance is a foundational component of the Australian economy with billions of dollars invested in industries globally, and coverage of millions of Australian homes, businesses and assets.”
“This roadmap will play a critical role in enabling our industry to do our part in reducing emissions and achieving the goals of a net zero economy.”
Insurers including RACQ have expressed their support of the Climate Change Roadmap.
“The ICA’s roadmap outlines a genuine way forward for the insurance industry to work together to reduce the risk of our changing climate,” RACQ Chief Executive Officer David Carter said.
“As a leading Queensland insurer, we have seen the devastation caused by climate change and we stand with the ICA and other insurers to improve our resilience and keep insurance more affordable and accessible for our members,” Mr. Carter added.
Some, however, are critical of the way the Roadmap is missing something necessary to create urgent action for insurers. In a report from insurancenews.com.au, Market Forces campaigner Pablo Brait said “According to the International Energy Agency the net zero emissions by 2050 target requires no new coal, oil or gas projects to be built. This is a fact that is missing from the ICA’s roadmap.”
“Any net zero by 2050 roadmap that doesn’t include an immediate end to the underwriting of and investment in new fossil fuel projects and companies building and planning new fossil fuel projects is not credible,” Mr. Brait added
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