In September 2021, ARC Ltd became the first company in Africa to join the UN-convened Net-Zero Asset Owner Alliance (NZAOA). The Alliance brings together asset owners, insurers and reinsurers committed to achieving net-zero greenhouse gas emissions across their investment portfolios by 2050.
As a company with a strong ESG performance, joining the NZAOA reaffirmed ARC Ltd’s commitment to supporting the transition towards a low-carbon economy and to playing an active role in climate action within the insurance and risk financing sector.
Members of the NZAOA are required to set intermediate net-zero targets across at least three of four defined categories and to report annually on progress.
ARC Ltd Net-Zero Targets
In line with these requirements, ARC Ltd has committed to the following targets:
Sub-portfolio target
Reduce the weighted average carbon intensity of publicly traded corporate debt by 40% between 2021 and 2030.
Engagement target
Engage with at least 12 asset owners and asset managers between 2021 and 2025 to support the reduction of greenhouse gas emissions across their portfolios.
Climate solution investment target
Increase investments in climate-solution-related assets by 10% between 2021 and 2025.
ARC Ltd recognises the critical role of the insurance industry in both highlighting the impacts of climate change and contributing to effective solutions. Through its commitments and actions, ARC Ltd positions itself as a leading African institution advancing climate-resilient and sustainable investment practices.