Nearly 9 in 10 Australian Insurers: Pledge for Net-Zero by 2050

The Insurance Council of Australia (ICA) has made significant revelations about the industry’s stance on climate change. Nearly 90% of insurers have committed to net-zero targets by 2050, with half aiming for operational net-zero as early as 2030. This shows a growing awareness and responsibility within the sector to combat climate change.

The 2024 Climate Change Roadmap details the steps insurers are taking in anticipation of mandatory climate disclosure requirements set to hit major Australian firms next year. Over half have already dealt with similar obligations elsewhere. Insurers are also implementing strategies like incentivising sustainable home renovations and enhancing bushfire resilience. These not only help in emission reduction but also in risk mitigation and potentially stabilising premium costs for customers.

The ICA has been actively supporting its members. It organised a national roundtable on land use planning and resilience and developed guides on emissions and transition planning. Moreover, it led an international delegation to the US to study extreme weather responses. With extreme weather events costing homeowners around $4 billion annually and projected to reach $35.2 billion by 2050, the need for such measures and the insurers’ role as a financial buffer has become even more crucial, as stated by the ICA’s CEO Andrew Hall.

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