Optimism Remains Despite NZIA Upheaval

Gallagher MD On The Alliance's Industry Role

A top ESG risk expert said that the end of the largest climate collaboration of insurance firms is disappointing. However, it doesn't mean that the industry's ESG objectives are no longer important.

Exiting the Net Zero Insurance Alliance (NZIA) has spiked due to the growing dislike for ESG. The NZIA is supported by the United Nations to assist the insurance industry in adapting to a low-carbon economy.

Lisanne Sison thinks the industry can reach its targets. She manages Gallagher's ESG and ERM practice.

Sison said it's sad that it's falling apart. But the organizations still want to follow their ESG goals.

Impact Of NZIA Turmoil On Insurance ESG Goals

Big shots in NZIA quit because of US Republicans. NZIA now has only 17 members (from 30).

Sison spoke with Insurance Business. He said the NZIA leaving shows insurers need to think more about ESG goals.

She said ESG is not dead even though the collective is affected. We need to have a more thoughtful approach to how we tackle it as a whole ecosystem.

The Gallagher MD has been working in enterprise risk management for more than a decade. He said that companies have to follow their ESG commitments because of increasing regulatory and social pressures.

She believes in considering various factors that cause ESG risks and taking into account different stakeholder groups in an organization when assessing these risks. She recommends an approach that resembles an ecosystem.

The NZIA's Industry Relevance, Explained

Does NZIA have a purpose in the insurance industry with only half of its members remaining?

Sison said thought leadership can still use the body for advice and guidelines. But for setting policy, they may not be the right body.

The Gallagher MD thinks climate issues still require industry collaboration. However, what that collaboration will look like is uncertain.

The person said they don't have an answer but believe that the need still exists. They are confident that a solution will be found in a different way.

Is Sison thinking of a new group instead of NZIA?

"It's tough to predict," she said. "I don't think there'll be another group at the moment due to political pressures, regulatory landscapes, and cultural differences worldwide."

Different people have different interests in ESG. It's hard to figure out what to do next. But Sison believes that if we all have the same goal, we can find a way forward in the industry.

She said that we need to work together towards common goals and objectives. We must find the best way to support our clients' transitions and help them handle their ESG risks and challenges. It's all about moving the insurance industry forward.

What do you think of Sison's thoughts on the Net Zero Alliance? Tell us in the comments.