WHEREAS: The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net-zero by 2050 in order to limit global warming to  1.5°C and avoid increasingly severe physical, transition, and systemic risks for companies and investors. 
Property and casualty insurers have a unique relationship to climate risk. They underwrite policies for and invest in the fossil fuel industry, which is responsible for ~90% of annual global carbon dioxide emissions, while simultaneously writing policies meant to protect their customers’ homes and businesses from the impacts of climate driven catastrophes.1  The worsening climate crisis has provoked more frequent and severe catastrophes, harming insurers who then impose further costs onto already climate impacted customers.2 
AIG committed to reaching net-zero GHG emissions across its underwriting and investment portfolios by 2050 and committed to using science-based emissions reduction targets, aligning with the latest climate science to meet the goals of the Paris Agreement. In doing so, it recognizes the business imperative of reducing GHG emissions and preparing for the transition to a low carbon economy.   
Recent high profile reversals of company commitments to set science-based targets have prompted investors to seek assurance that companies have comprehensive strategies sufficient to meet their stated targets. Developing a climate transition plan is an emerging best practice that meets this need. Transition plans are forward looking, near- and medium-term sets of actions a company will take to align its GHG emissions, business strategies, governance structures, and external policy engagement with a 1.5°C scenario in a just and equitable manner.   
Over 4,100 organizations disclosed to CDP that they have 1.5°C aligned transition plans; however, only 45 percent were public, and only 12.6 percent covered key elements of credible transition plans.3 By preparing and publishing a credible transition plan, companies can mitigate reputational and regulatory risks and maintain investor confidence.