Net Zero

“We have seen the data and we are focused on the realities of climate change. AIG can be a catalyst for real, positive changes that advance sustainability initiatives and expand renewable energy generation and new technology.”

Jennifer Waldner Grant, Chief Sustainability Officer

AIG believes the scientific data about climate change is unequivocal: climate change poses a major and unprecedented threat to human health and international security and peace.

We are committed to being a company of action as we help the world navigate climate challenges. Through our risk management expertise, underwriting excellence and investing influence, we can promote climate resilience and support a just and orderly transition to a low-carbon economy. 

Our climate actions are shaped by four guiding principles:

Integrate climate risks and opportunities and other ESG factors into our underwriting, investment and procurement practices

Engage with our clients, suppliers, investors and other key stakeholders about the journey towards an orderly and just transition to a low-carbon economy 

Lead by example and set science-based targets to reduce our emissions 

Amplify our impact by helping to shape the standards for insurers on climate action

Net Zero Commitments

On March 1, 2022, we announced specific climate actions:

Reaching net zero GHG emissions across our underwriting and investments portfolios by 2050, or sooner

Reaffirming last year’s operational net zero commitment by 2050, or sooner

Sourcing 100 percent Renewable Energy for AIG’s operations by 2030, or sooner

Using science-based emissions reduction targets, aligning with the latest climate science to meet the goals of the Paris Agreement

“Leading change in a changing world requires being a company of action – and, as a market leader, AIG is committed to setting the standard with our actions. We believe our ESG commitments are an important step forward for AIG, the clients we serve and the global communities where we live and work.”

Peter Zaffino, Chairman & CEO

Carbon Exposure Assessment

Prior to establishing net zero commitments, AIG wanted to ascertain its carbon exposure baseline. In 2021, we completed a carbon exposure assessment of our General Insurance underwriting and investment portfolios to understand our current state and guide our climate strategy, including our recent net zero commitments.  

To measure our overall carbon exposure, we engaged a third-party consultancy to help us estimate absolute and intensity emissions[1] within our underwriting and investment portfolios and our operations, and to develop a roadmap of the action steps that must be taken to achieve net zero GHG emissions by 2050 or sooner.

To conduct this analysis, we used the latest climate data science, standards and frameworks available. Graph 2 at right shows AIG’s estimated emissions. This is based on data availability and existing methodologies. As the standards and frameworks continue to evolve and more complete data becomes available, the estimations may change. This analysis does not include Life & Retirement’s underwriting or investment portfolios given the expected separation of this business from AIG.

The emissions of companies that AIG underwrites and invests in make up most of our estimated emissions, while AIG’s own operations represents approximately 1% of the total.

AIG intends to reduce its emissions by setting and pursuing science-based targets. Remaining emissions that cannot be reduced will be neutralized with high-quality offsets.

1. Absolute refers to the total quantity of greenhouse gas emissions being emitted, whereas intensity compares the amount of emissions to some unit of economic output.
2. This analysis does not include L&R’s underwriting or investment portfolios given the expected separation of this business from AIG.
3. Investments — Includes estimated emissions primarily from corporate bonds but also includes common equity, commercial real estateand corporate loans where data was available from our General Insurance Investment Portfolio. The analysis assumes a static portfolio.These estimations may change as standards evolve and more complete data becomes available.
4. Underwriting — Includes estimated emissions from commercial lines where data was available. The analysis assumes emissions at a point in time. These estimations may change as standards are developed and more complete data becomes available.
5. Operations — Includes scope 1 and scope 2 emissions.


82% of AIG’s estimated emissions from its underwriting General Insurance business are attributed to  Utilities, Manufacturing, Mining, Quarrying and Oil & Gas Extraction, Management of Companies and Enterprises, Transportation and Warehousing. The remaining 18% is distributed across 15 other sectors including finance and insurance, wholesale and retail trade, professional services, agriculture, forestry, fishing and hunting, real estate, construction, hospitality, public administration.

In 2021, AIG held ESG roundtables with several of our clients across multiple regions to facilitate open dialogue about ESG priorities and journeys. AIG intends to continue our efforts to engage more closely with our clients, particularly those in high-emitting sectors, to understand their transition pathways and provide solutions that incentivize and enable them to reduce their own emissions.

In 2021, AIG also designed an ESG underwriting framework for its General Insurance business. This framework is currently being piloted across business lines and regions for testing and refinement. You can read more in the Sustainable Solutions & Innovation section of this report.


Using Arabesque S-Ray® Temperature Score methodology[1], we measured the temperature score of our corporate bonds and publicly listed common equity portfolios in our General Insurance business that were part of the Arabesque-S-Ray Temperature Score universe. The temperature score quantifies the extent to which our investment portfolios are contributing to global temperature rise. Without taking further action and assuming a static investment portfolio, AIG’s current common equity and corporate bonds portfolios would align to a 2.7°C temperature increase by 2050.

AIG’s Investments group supports our net zero transition and protects our business from long-term physical and transitional risks through our ESG Investment Program. This program focuses on integrating ESG considerations, reallocating capital in ESG solutions, engaging with investees and other key stakeholder groups and corporate leadership. You can read more in the Sustainable Solutions & Innovation section of this report.

7. Arabesque S-Ray is a global ESG data provider that has developed a methodology for measuring temperature scores for measuring the extent to which corporations across the world are contributing to the rise in global temperature.

Path to Net Zero

To meet our net zero commitments, we will continue to measure our emissions annually and will use these measurements to set science-based targets. Our multi-pronged approach to reaching net zero focuses on four levers: 


Promoting preparedness through disciplined underwriting & investment excellence, including the explicit, systematic & comprehensive integration of ESG into our business practices


Engaging with our clients, suppliers, investees and other stakeholders to understand their decarbonization pathways, collaborate to find solutions and to partner to develop more sustainable business practices


Capitalizing on the latest technology and innovation by using enhanced data and analytics capabilities, leveraging our risk expertise and supporting and investing in new solutions that advance net zero progress 


Leading by example in our operations and helping to shape the standards for net zero pathways

“We will work together with our clients and distribution partners, in particular, to ensure an ongoing transition to a net zero future and provide guidance on feasible solutions designed to help manage climate-related risks.”

Constance Hunter, Executive Vice President, Global Head of Strategy and ESG

Through our partnerships with net zero-focused alliances, such as the Sustainable Markets Initiative (SMI) Insurance Taskforce, AIG continues to have a seat at the table and take a leading role in shaping the outcome of industry standards, regulations and transformational products. We are involved in SMI’s workstream, which focuses on developing an approach to measuring the carbon footprint across underwriting portfolios and establishing a framework to track the global insurance industry’s ability to support the transition towards net zero across multiple industries and geographies. This Workstream partners with Glasgow Financial Alliance for Net Zero and the UN-convened Net Zero Insurance Alliance. You can read more about our partnerships in the Sustainable Solutions & Innovation section of this report. 

AIG continues to have a seat at the table and take a leading role in shaping the outcome of industry standards, regulations and transformational products.