Gathering reliable data that enables the decision-making process is a huge challenge on the insurance business’s journey towards net zero, attendees were told on Tuesday at the second annual Bermuda Climate Summit.

Andrew Smith, the chief risk and sustainability officer at Conduit Re, said: “Data is a key challenge. This year, we disclosed our supplier emissions as part of our carbon disclosure, as part of our annual reporting.

“Trying to get to the bottom of your supplier emissions ... is a much harder task than you might imagine because the comparability of data isn’t there.”

He added: “Getting to the quality data that you need to be able to report reliably is, I think, a real challenge.”

Mr Smith was appearing on the panel “Net Zero?” with Rachael Delhaise, head of sustainability, Convex; Andrew MacFarlane, head of climate, Axa XL; and Steve Smith, head of research and development, Vantage.

The moderator was Miqdaad Versi, head of ESG, Oxbow Partners UK.

Steve Smith said: “It is a data business that we’re in and data is the most important asset we have.

“So, how do we collect that data on carbon emissions, on what our clients, what our cedants look like, is a big problem actually.

“What do you mean by you are net zero as a client? How do you quantify that?”

Dr Smith added: “Those are issues that we have to deal with if we want to manage this process to a conclusion which is where all our clients are, and ourselves are, net zero.”

Mr Versi asked what success in five years’ time would look like regarding net zero.

Mr MacFarlane said: “Data flowing seamlessly through all our systems, net-zero commitments, engaging with all our clients, products and services to support the transition.”

The Net Zero Insurance Alliance, a United Nations-convened programme, was begun at the G20 Climate Summit in Venice in 2021.

It featured members committed to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050, in order to contribute to the implementation of the Paris Agreement on climate change.

However, NZIA’s membership has largely disintegrated in recent months, partly because of anti-trust concerns raised by the US political class, meaning that more companies are now going it alone with their net-zero efforts.

Convex, Conduit Re and Vantage were not signatories to NZIA.

Axa XL was a part of NZIA but Axa, its French parent company, recently withdrew from the organisation of which it was a founding member.