Allianz, a prominent German insurance company, recently withdrew from the Net-Zero Insurance Alliance (NZIA), one of the top global industry consortiums focused upon achieving net zero carbon dioxide emissions goals by 2050.
Allianz Chief Financial Officer Giulio Terzariol expressed concerns over legal implications, emphasizing the responsibility to its shareholders. “We have a fiduciary duty to protect our shareholders, and it wouldn’t be responsible to stay in the alliance,” Terzariol stated. He pointed to the complex legal landscape in the United States, adding, “We spend substantial resources on sustainability, but we choose not to be part of an alliance that exposes shareholders to unnecessary risks.”
Despite the departure, Terzariol reassured that Allianz remains steadfast in its commitment to net-zero. “Achieving our objectives remains our focus. Our commitment doesn’t waver,” he added.
The NZIA saw a mass exodus earlier this year, leaving it with a mere 11 members. Major insurers like Swiss Re, Allianz, and former NZIA chair AXA, led the departure. Most departing firms, including Munich Re, pointed to “antitrust risks.” Munich Re noted, “The chances of globally achieving decarbonization collectively without significant antitrust risks are so limited; it’s more efficient to work individually.”
The exodus was preceded by a letter from 23 US state attorneys general in May, highlighting potential violations of local and national laws by the NZIA’s protocols. Though the NZIA eventually attempted to address these concerns, the bulk of departures had already occurred. Consequently, in July, NZIA eliminated the mandate for its remaining members to set or disclose emissions targets.
See full article at Responsible Investor.
Jack McPherrin ([email protected]) is a managing editor of StoppingSocialism.com, research editor for The Heartland Institute, and a research fellow for Heartland's Socialism Research Center. He holds an MA in International Affairs from Loyola University-Chicago, and a dual BA in Economics and History from Boston College.