The headquarters of Generali in Rome, Italy. Generali is part of the Net-Zero Insurance Alliance (NZIA) that aims to work to shift underwriting portfolios towards net-zero greenhouse gas emissions by 2050. Bloomberg
The headquarters of Generali in Rome, Italy. Generali is part of the Net-Zero Insurance Alliance (NZIA) that aims to work to shift underwriting portfolios towards net-zero greenhouse gas emissions by 2050. Bloomberg
The headquarters of Generali in Rome, Italy. Generali is part of the Net-Zero Insurance Alliance (NZIA) that aims to work to shift underwriting portfolios towards net-zero greenhouse gas emissions by 2050. Bloomberg
The headquarters of Generali in Rome, Italy. Generali is part of the Net-Zero Insurance Alliance (NZIA) that aims to work to shift underwriting portfolios towards net-zero greenhouse gas emissions by

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Energy

Global insurance companies team up for net-zero climate alliance

The companies within the alliance include Europe's top three insurers by premiums - Allianz, Axa and Generali

Reuters

July 12, 2021

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Eight of the world's leading insurance and reinsurance companies on Sunday launched an alliance to help speed up a transition to a net-zero emissions economy.

The companies, which include Europe's top three insurers by premiums - Allianz, Axa and Generali - said the Net-Zero Insurance Alliance (NZIA) would work to shift underwriting portfolios towards net-zero greenhouse gas emissions by 2050.

The move comes as insurers come under increasing pressure to spell out how they plan to decarbonise their businesses amid growing calls for them to stop underwriting and investing in fossil fuel projects.

Each of the companies will individually set intermediate targets every five years and report on progress annually in co-operation with competition authorities, the NZIA members said in a statement.

"With this new Net-Zero Insurance Alliance, we are raising our climate ambition further," said Thomas Buberl, chief executive of the AXA Group, which chairs the NZIA.

NZIA members, which also include Aviva, Munich Re, SCOR, Swiss Re, and Zurich Insurance Group, will set underwriting criteria for the most carbon-intensive activities in their underwriting portfolios and offer solutions for low-emission and zero-emission technologies.

They will also include net-zero and decarbonisation risk criteria in their risk management frameworks.

"By committing to join the gold standard alliance for net zero, the (NZIA) will ultimately make underwriting contingent on underlying companies having credible net-zero transition strategies," said UN climate envoy Mark Carney.

The alliance, first outlined in April, was presented by Generali chief executive Philippe Donnet at Sunday's G20 Climate Summit in Venice.

Many of the leading Europe-based insurers have already adopted climate-friendly policies. Last month, Generali pledged to reach carbon neutrality in its direct investment portfolio by 2050.

While you're here
While you're here
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Who are the Soroptimists?

The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.

The organisation said its name is best interpreted as ‘the best for women’.

Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.

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Updated: October 07, 2021, 12:01 PM