NN Group scales up net-zero efforts with Climate Action Plan
Dutch insurer NN Group, has published a Climate Action Plan which sets out a roadmap to reduce greenhouse gas (GHG) emissions to net-zero in its own operations by 2040, as well as in its investments and insurance underwriting by 2050.
The plan also includes a further tightening of NN’s investment policies on unconventional oil and gas, and thermal coal.
It noted it will publish an updated version in July 2023.
Dailah Nihot, member of the NN Group Management Board, said: “The financial sector can play a key role in enabling a transition towards a low-carbon economy. Sustainability has been high on our agenda for many years, and is rooted in NN’s strategy with concrete targets since 2020. We aim to tackle GHG emissions for our investment activities, insurance underwriting portfolio, and across our own operations.
Previously, NN set interim targets for corporate investments, 25% by 2025 and 45% by 203. As well as for its own operations, 35% by 2025 and 70% by 2030.
According to the announcement, NN’s approach to reduce the risks and impact of climate change is based on two main pillars. The first, to help accelerate the transition to a low carbon economy. The second, to develop and offer products and services that address the environmental challenges of its customers.
Nihot added: “Over the past years, we introduced new policies and tightened existing ones, set interim targets on GHG emissions and we doubled our investments in climate solutions. Our Climate Action Plan addresses some of the developments and challenges that we encounter on our way to net-zero emissions. It is clear that there is much more work to do, in order to further build and implement our strategy going forward, and we expect to review our plan regularly over the coming years.”
The NN Group is focusing its efforts on dialogue and engagement with companies to stimulate their transition to a sustainable business model.
After closely monitoring the development with companies and if it is established that there is insufficient progress or there is no willingness to improve, the group stated, it would dispose of the investments.
The NN Group is also tightening its fossil fuel related policies. It introduced oil, gas and coal policies in 2018, and its current exposure to oil and gas is approximately 1% to 2% of the group’s total proprietary assets.
It will also add additional criteria around unconventional exploration and production focused on Arctic drilling and shale oil and gas.
Regarding Arctic drilling, the NN Group no longer invests or holds companies that directly derive more than 5% of their revenues from offshore oil and gas exploration in the Artic region, and has no existing exposure in its portfolio.
It has also strengthened its existing restrictions applicable to oil sands by lowering our thresholds from 20% to 5%. NN stated that it will no longer invest in or hold companies that directly derive more than 5% of their revenues from oil sands extraction, and also has no existing exposure in its portfolio.
The group will also no longer make new investments in companies that directly derive more than 30% of their revenues from fracking/ shale oil and gas. For companies with 5 to 30% involvement, investment will only be allowed if a credible transition plan is in place. Existing investments will be divested.
The firm has also noted that since 2019, the NN Group has had a coal phase-out policy in place for its investments, that aims to reduce thermal coal exposure to ‘close to zero’ by 2030.
It has increased restrictions and will immediately divest from companies that have not demonstrated sufficient progress to reduce their involvement in thermal coal activities.
Source: Reinsurance News, https://www.reinsurancene.ws/nn-group-scales-up-net-zero-efforts-with-climate-action-plan/