UN secretary-general urges re/insurers to resist pressure from fossil fuel industry

UN secretary-general, António Guterres, has urged the financial community, including re/insurers, to ignore misinformation from supporters of the fossil fuel industry and remain committed to their net-zero alliances.

His remarks follow a series of departures from the Net-Zero Insurance Alliance (NZIA), including by some of its founding members – Munich Re, Swiss Re and Zurich Insurance Group.

Speaking in New York on June 15, Guterres focused on the role of governments in enabling a net-zero energy transition. He urged them to demonstrate political will “so developed countries commit to reaching net zero as close as possible to 2040 and emerging economies as close as possible to 2050”.

He also specifically referred to fossil fuel companies’ attempts to undermine the net-zero alliances and the role financial institutions can play.

“Fossil fuel companies must also cease and desist influence peddling and legal threats designed to knee-cap progress. I am thinking particularly of recent attempts to subvert net-zero alliances, invoking antitrust legislation,” Guterres said.

Governments are pivotal in setting the record straight, he continued, and they must provide clear reassurance that “collective climate action does not violate anti-trust – it upholds the public trust”.

“At the same time, financial institutions must encourage this transformation of the fossil fuel industry. I urge all financial institutions to present public, credible and detailed plans to transition their funding from fossil fuels to clean energy,” he said.

The NZIA is part of the Glasgow Financial Alliance for Net Zero, which requires its members to commit to cutting their greenhouse gas emissions.

But the alliance has been dogged by antitrust concerns, leading to some members to prefer working independently.

These concerns have followed opposition to the NZIA and other environmental, social and governance initiatives by US lawmakers.