Zurich Insurance is one of the largest insurers in the fossil fuel industry globally. (1) It was a member of the Net Zero Insurance Alliance NZIA until April and would therefore have been obliged to publish emissions reduction targets by July 2023. In January 2023, the NZIA published a Target Setting Protocol (TSP), which envisages an emissions reduction of at least 34% in the period 2019-2030 and at least 26% in the period 2022-2030. These specifications are already far from the scientific findings; the IPCC 1.5 degree report envisages a reduction of 43% in the period 2019-2030. In addition, so-called Scope 3 emissions are ignored by the TSP. (2)
Zurich, along with a handful of other insurance companies, is still among the first to publish a transition plan. That’s pleasing. However, for the insured emissions, it has set a reduction target for emissions intensity (not absolute emissions) of just 20% for the period 2022-2030, whereby only Scope 1 and 2 emissions are counted here (see Zurich Transition Plan, p. 12 ). This is not only significantly lower than the specifications of the TSP and the IPCC, but also below the goals set by all other insurance companies that have set themselves intermediate goals to date; such as Allianz, AXA, MS&AD, Fidelis, ASR and NN. (3)
Zurich’s approach to so-called engagement (supporting its fossil fuel customers in the transition) is also not convincing. It is gratifying that it finally wants to resume this commitment in 2021 after its program with coal and oil sands/oil shale insurance customers expires. It is also an important step that Zurich announces that it will end its business relationship with oil and gas customers who do not have a credible transition plan by 2030. However, the 2030 goal is clearly too late (see Zurich Transition Plan, p. 12); In addition, Zurich’s definitions of what a credible transition plan is are very unclear (see Zurich Transitions Plan, p. 8).
Nora Scheel, campaigner at Campax, comments: “Even Switzerland, whose climate measures were recently criticized by the ECHR as insufficient, has set itself an emissions reduction target of 35% in the period 2021-2030. Zurich’s goal therefore appears to be completely unambitious. Zurich is therefore not living up to its responsibility. A transition at the pace that Zurich envisages will not limit global warming to 1.5 degrees and will therefore bring chaos and destruction. The storms in Europe this summer are just a foretaste of what awaits us if we miss the 1.5 degree limit.”
Media contact: Nora Scheel, [email protected]044 500 76 04
