The United Nations Environment Programme (UNEP) has unveiled a new initiative, the Forum for Insurance Transition to Net Zero (FIT), as the Net-Zero Insurance Alliance (NZIA) concludes its operations due to multiple challenges and departures in 2023.
FIT, a UN-led structured dialogue and multi-stakeholder forum, aims to accelerate voluntary climate action within the insurance industry and among key stakeholders. UNEP views this forum as a pivotal opportunity to drive the transition towards a net-zero emissions economy.
The forum will collaborate with insurers, reinsurers, brokers, regulators, standard-setters, scientific communities, civil society, and other stakeholders to advance global net-zero insurance practices. Initial priorities include developing frameworks for net-zero insurance metrics and targets, exploring new concepts, and crafting transition plans for insurance market participants. FIT will also engage with corporates across various sectors to support the development of net-zero transition plans.
Addressing challenges and opportunities in developing insurance solutions that facilitate the net-zero transition is another core focus of FIT.
Founding members of FIT include 19 global insurers and reinsurers such as Achmea, Aviva, Generali, and IAG, among others. The forum will also seek input from two independent consultative groups—one comprising insurance regulatory authorities and the other consisting of academic and civil society organizations—to ensure transparency and inclusivity in its activities.
Additionally, FIT has assembled a legal team comprising experts from global law firms specializing in antitrust, sustainability, insurance, and finance.
UNEP emphasizes that FIT marks an evolution in its collaboration with the insurance industry and stakeholders towards achieving a net-zero economy. This initiative follows the discontinuation of NZIA effective April 25, 2024, which was launched during the G20 Climate Summit in Venice in 2021 but faced challenges related to antitrust concerns and regulatory issues in the US.
Through FIT, UNEP aims to strengthen its commitment to combatting climate change and realizing a resilient, sustainable, and prosperous future for all. More organizations are expected to join FIT as it becomes fully operational in the coming months.
