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 members, NN is committing to transition their insurance 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. Based on the PCAF Standard we have set an intermediate carbon reduction target for the NN Non-life P&C commercial lines underwriting portfolio on insurance associated emissions (IAE) with minimum of 26% reduction in 2030 compared to 2022. Please refer to the Climate Action Plan update of 2023 for more details.
Meanwhile, as for investments, we have implemented an approach for coal in insurance underwriting. NN Group does not provide insurance underwriting services to thermal coal mining companies, coal power companies and coal infrastructure companies. This includes project specific underwriting and corporate underwriting. NN Reinsurance follows the NN Group insurance services according to the NN Group policies and approach. Exempt is our marine cargo business where it 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, such as pension products and workers compensation as per our regular policy applicability.
Like the coal approach for insurance underwriting, NN Group does not provide insurance underwriting services to companies involved in unconventional oil and gas. The unconventional oil and gas companies include tar sands, shale oil & gas, arctic oil & gas, liquified natural gas (LNG), and ultradeep-water(UDW) oil & gas. This covers exclusion of new projects and covers the whole production cycle (inc. Infrastructure). Exempt is our marine cargo business where it includes package and company insurance. NN Reinsurance follows the NN Group Insurance services according to the NN Group Policies and approach.
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.‘