Zurich Insurance Drops SBTi FINZ Validation While Maintaining Net Zero Commitment

Zurich Insurance Group has decided not to pursue validation of its climate targets under the Science Based Targets initiative's Financial Institutions Net-Zero Standard, following a similar decision by Swiss Re in September and pressure from US state attorneys general on financial institutions participating in the framework. Zurich said its net zero ambitions remain unchanged and it remains committed to its Climate Transition Plan.

The SBTi released its Financial Institutions Net-Zero Standard in July 2025, establishing requirements for financial firms to set net zero-aligned targets for lending, investing, insurance and capital markets activities. Among its key requirements is a fossil fuel transparency policy mandating that institutions end project finance explicitly linked to fossil fuel expansion, end general purpose finance to oil and gas expansion companies by 2030, and transition portfolio energy activities to net zero by 2050. In August, 23 US state attorneys general warned the SBTi and participating financial institutions that they risk violating federal and state antitrust and consumer protection laws.

Zurich announced its initial net zero goal in 2019, targeting net zero by 2050 across its insurance business, investments and operations, and launched its first Climate Transition Plan in 2024. One of its supply chain goals is to have 75% of managed procurement spend by 2025 with suppliers holding SBTi-approved or equivalent science-based targets. The decision not to pursue FINZ validation does not affect this supply chain target, as it references SBTi or a similar body. Zurich has not indicated it will seek alternative framework validation.

The decisions by Zurich and Swiss Re to withdraw from FINZ validation reflect a broader retreat by European financial institutions from formal participation in science-based target validation frameworks, driven by US legal and political risk. For Indian insurers and financial institutions that have been considering alignment with international net zero frameworks—including the National Stock Exchange and Bombay Stock Exchange-listed companies subject to SEBI's BRSR requirements—the regulatory uncertainty around FINZ adds complexity to decisions about which international frameworks to adopt.

Key figure — 23 US state attorneys general issued warnings to SBTi financial institution signatories in August