This past May, German insurer Allianz left the Net-Zero Insurance Alliance (NZIA). At the time, many speculated that Allianz’s departure was due to the rising anti-ESG movement in the US and its potential legal risks. Recent reporting from Responsible Investor appears to confirm these suspicions. The article states that:
“Speaking on a media call after the publication of Allianz’s Q2 financial results, [Allianz CFO Giulio] Terzariol said that the political and legal system in the US ‘can be very, very tricky’.
‘We are spending a lot of time and resources and money on all these issues to do with sustainability but we are going to do this basically not being part of an alliance because this is going to expose shareholders to a risk that they don’t need to take,’ he said.”
Aside from a few investigations by state Attorneys General, no regulatory action has been taken against net zero alliances. However, anti-ESG’s threat of antitrust enforcement has been enough to make many climate pact participants rethink their involvement. While it’s unclear that an enforcement action of this nature could be successful, no one wants to be the test case.
NZIA has suffered from the atmosphere of fear created by the anti-ESG movement. The organization only has eleven remaining members. However, most departing firms like Allianz have pledged to continue independently supporting climate initiatives, despite forgoing participation in the climate alliance.
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