Media Releases

2 November 2022

ZALI STEGGALL MP WELCOMES ICA’s CLIMATE CHANGE ROADMAP, URGES OTHERS TO FOLLOW

2 November 2022 - Zali Steggall MP welcomes today’s release of the Insurance Council of Australia’s (ICA) roadmap for the insurance sector to achieve net zero for operations by 2030 and for all insurers activities to net zero by 2050.

Zali Steggall MP said: “This is an example of industry leadership from a sector heavily impacted by climate change. I urge peak bodies and industry leadership groups to follow suit and demonstrate how their members can achieve net zero across the entire supply chain and investments.”

Ms Steggall commends the ICA’s Climate action policy document, released with the roadmap which aligns with her consistent calls on Government to develop a national climate risk assessment to allow all stakeholders to make informed decisions about investments and exposure to climate risk.

“Individuals need this, businesses need this, insurers need this, banks need this, and governments should also recognise the need for this. It is an essential baseline of the risk exposure for everyone”.

Ms Steggall also supports the call for more sustainable and energy efficient housing, noting that 50% of the buildings in which we live and work in 2050 will be built between now and then.  It is imperative that Australia starts to build with net zero in mind. Climate resilience considerations need to be improved in the national construction code, and built into practice through federal, state and local governments.

“This needs to happen now, not later, to allow for a smoother transition and avoid costly retrofitting in the future. It will also start addressing the cost-of-living pressures on households, by accelerating efficiency measures.”

Importantly the membership of the Insurance Council of Australia also includes the large motor vehicle clubs and insurers and notes the role these stakeholders will play as the nation looks for improvements in electric vehicle charging infrastructure and upskilling the workforce who maintain and repair electric vehicles.

Finally, from an investment perspective and in line with ICA’s recommendations, Ms Steggall would like to see a common language to speak about sustainability. An Australian Sustainable Investment Taxonomy would be a huge step forward in regulating green washing and improving the quality of the investments.

Insurers are on the frontline of extreme weather events and these measures will not only reduce their risk but help communities to stay safer and support their transition to Net Zero.

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