Setting the organisation’s climate ambition. This activity will allow associations to understand the different Net Zero ambition levels and determine the aspiration and intensity of the activities required to achieve their net zero objectives. During this activity, associations should also consider the applicable reglatory requirements and the impact theat their ambition will have on their key stakeholders, including investees and investors.
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Collecting and aggregating a variety of data, and developing an emissions inventory. For this sector, greenhouse gas emissions will concentrate in scope 3, which includes emmisions linked to investmnets and underwriting, as well as spply chain indirect emmisons. Being these categories are more complex, insurers are recomended to have specific tools in place to be able to identify and manage their indirect emissions.
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Setting emission reduction targets. The objective of this step is to determine the high-level and specific targets for each of the emission components identified in the previous phase. Ideally, targets should reflect short-term and long-term objectives and should align with the net zero ambition that has been set. Insurers will be expected to set specific targets relates to their operations, their investments and their underwriting.
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Establishing an action plan to enable the organisation to achieve the required emission reductions, the management of ongoing internal and external communications, and regular disclosures. Depending on the size and type of organisations, most insurers will likely be required to disclose climate-related information, which could address the TCFD recomendations or the more recent Transition Plan Taskforce guidelines.
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Identifying and implementing required changes to the existing organisational operating model to ensure the net zero processes, learnings and knowledge can be fully integrated into the ongoing operations. For insurers, the focus should be on the investment and unerwriting areas, as structual and cultural changes are likely to be needed to achieve the Net Zero objects set.
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