Global Insurers Leave UN Climate Alliance Over Antitrust Claims

The NZIA statement requires insurers to modify their internal practices to lower carbon emissions and promote net-zero actions among their clients, which some antitrust legal experts find worrisome.

The signers commit to supporting corporate disclosures regarding climate change, including the TCFD framework used by the European Union and soon to be released by the U.S. Securities and Exchange Commission.

Related: When Climate Collaboration Is Treated as an Antitrust Violation

The climate disclosures of publicly traded companies are centered on greenhouse emissions and climate change actions, and are part of the larger discussion surrounding environmental, social, and governance. ESG, a type of financial investing, takes into account factors beyond just financial returns.

Over the past few months, ESG has encountered political opposition in the United States due to attempts by the Republican-controlled Congress to reverse a Department of Labor ERISA rule on ESG, resulting in President Joe Biden’s first veto.

States with Republican control are enacting legislation aimed at countering ESG policies, utilizing their authority in legislation and budgeting at the state level. Additionally, there are concerns that ESG factors within the insurance industry are leading to increased costs.