African Risk Capacity joins the UN Net-Zero Asset Owner Alliance
It has been announced that African Risk Capacity (ARC) Limited is the first African company to join the Net-Zero Asset Owner Alliance organized by the UN.
The Net -Zero Asset Owner Alliance was created in 2019 by eight of the world’s largest insurers and reinsurers and is designed to move insurance portfolios to zero net greenhouse gas (GHG) emissions by 2050.
By joining the Net-Zero Asset Owner Alliance, ARC Limited also commits to adopting a
approach to managing sustainability considerations, such as climate change, and to advocate for business and industry action aimed at a low-carbon transition of economic sectors.
ARC Limited CEO Lesley Ndlovu said the organization is playing its role in supporting the transition to a
net zero economy very seriously.
“Having recently obtained the best overall environmental, social and governance (ESG) score in the global insurance sector, as assessed by Sustainalytics, joining the Net -Zero Asset Owner Alliance
was an obvious next step for us. We are proud to be the first African company to join the alliance in its efforts to accelerate the transition of the financial sector and the global economy towards net zero emissions, ”Ndlovu said.
“As COP26 approaches, we recognize the role the insurance industry is playing in providing a strategic warning on the very real impacts of climate change. Africa is particularly vulnerable to this as a continent that suffers the full brunt of droughts, floods, cyclones and other weather events due to climate change, although it has in fact had very little impact on climate change. carbon emissions, ”Ndlovu said.
“We believe it is the duty of ARC Limited to play a leadership role in mitigating and managing the effects of climate change on the African continent by supporting the promises made six years ago during the Accord. of Paris on the climate and by addressing the root cause of these events of climate change in Africa, a continent which depends so heavily on the agricultural sector heavily impacted for its economy and its employment ”.
Founded in 2014, ARC Limited provides natural disaster insurance relief to African countries. Along with its partners, who provide premium support, the insurer has already paid more than US $ 65 million to seven governments to provide drought relief and address economic challenges facing the most vulnerable citizens of these countries. country.
“ARC Limited’s role as a parametric insurer is of crucial importance in building resilience and ensuring that a country is able to bounce back quickly from a natural disaster,” said Ndlovu.
He adds: “Beyond that, we recognize the importance within our own organization of taking climate change into account when making decisions and establishing a credible net-zero transition strategy so that we can contribute. to the solution while simultaneously seeking to support the most vulnerable. in Africa by providing rapid financial support to mitigate the impact of climate change-induced disasters.