Insurance and banking activities
Contribution to the decarbonisation of the economy is relatively new in climate action for insurance, and still is subject to lots of exploratory work.
For this reason, we became a member of and signed the commitment of the Net-Zero Insurance Alliance (NZIA). Committing to the NZIA strategically fits our ambition on climate change, and is in line with our net-zero commitment for investments. NN is keen to be amongst the first companies to join the important work of the NZIA and set a net-zero ambition for the insurance underwriting as well. Together with all NZIA member, NN is committing to transition our underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. We believe that knowledge sharing with key players in the international (re)insurance market is important to explore this area for insurance. Together with the alliance, we are exploring how to measure and set targets. We have joined the PCAF for insurance to do so, which have planned it first guidelines for measurement by the end of 2022.
Meanwhile, as for investments, we have implemented a coal policy for insurance underwriting. NN Group does not provide insurance services to companies that derive more than 30% of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation. Furthermore, NN will ensure that by 2030, it only provides new insurance covers to clients that have 5% or lower exposure to coal-related activities. Exempt from this policy is our marine cargo business where this includes package and company insurance. Stand-alone coverage of thermal coal transport is not part of NN’s existing product offering, and will not be considered in the future. This decision will not apply to the provision of products or services if they are intended for the benefit of employees (e.g. pension products, workers compensation). While our exposure is limited, we believe the policy sends a strong signal for an urgent phase-out of coal in order to achieve the Paris targets, and help mitigate the climate-related transition risks in our portfolio.
For our banking activities we are working on roadmaps to enable use to set metrics and targets to transition our mortgage portfolio to net zero. NN Bank will measure the carbon footprint of our mortgage portfolio and will take action to reduce the associated emissions. More specifically, we are working together with industry peers in the Energy-Efficient Mortgages (EEM) Netherlands Hub, and the PCAF for investments to develop standards and frameworks for energy efficient mortgages and carbon footprint measurement. This work will feed into the development of an overall financial sector strategy and targets that will contribute the ’Commitment of the financial sector to the Dutch Climate Agreement.‘