The French Insurance Federation reinforces the contribution of the insurance sector to the fight against global warming

The French Insurance Federation (FFA) announced today a twofold initiative:

  • It is joining, as Network Supporter, the Principles for Responsible Investment (PRI), a global initiative launched in 2006 by investors in partnership with UNEP FI - the United Nations Environment Programme Finance Initiative - and the UN Global Compact.
  • The FFA is also becoming a Supporting Partner of the Net-Zero Asset Owner Alliance (NZAOA), which was launched under the aegis of the UN in 2019. The NZAOA brings together 48 investors representing $7 trillion in assets under management.

PRIs: promoting Socially Responsible Investment

The FFA is joining as Network Supporter a network of over 3,000 investors and asset managers that are cooperating to implement the six Principles for Responsible Investment (PRI1). The aim is to encourage investors and asset managers to take full responsibility for incorporating environmental, social and governance (ESG) issues into their investment and ownership decisions.

The Net-Zero Asset Owner Alliance -NZAOA-: Helping insurers commit to making their investment portfolios carbon neutral

The 48 investor members of the Alliance are committed to making their investment portfolios carbon neutral by 2050. In the meantime, some of them have also announced that they will set interim targets every 5 years and report regularly on their progress, taking into account the progress of science and in particular the conclusions of the IPCC.

By becoming a Supporting Partner of the Alliance, the FFA is committed to encouraging its members to join as well, but also to supporting them in this process. It will provide them with a framework of methodological support through the organisation of task forces, putting them in touch with members and permanent staff of the Alliance and disseminating existing documentation. The FFA will therefore be by their side to explain and help them during this process towards making their investment portfolios carbon neutral by 2050.

For Florence Lustman, Chairwoman of the FFA: “The FFA’s endorsement of the PRIs and the NZAOA marks a further step in the insurance industry’s commitment to sustainable finance and the fight against global warmingIt confirms the momentum of insurers to integrate environmental, social and governance (ESG) issues into their investment strategies and decisions. I am pleased that the FFA is contributing to such initiatives.

1 These six principles are:

  • Principle 1: “We will incorporate ESG issues into investment analysis and decision-making processes.”
  • Principle 2: “We will be active owners and incorporate ESG issues into our ownership policies and practices.”
  • Principle 3: “We will seek appropriate disclosure on ESG issues by the entities in which we invest.”
  • Principle 4: “We will promote acceptance and implementation of the Principles within the investment industry.”
  • Principle 5: “We will work together to enhance our effectiveness in implementing the Principles.”
  • Principle 6: “We will each report on our activities and progress towards implementing the Principles.”