Tunis Re is moving towards a structured and ethical ESG approach, with particular attention paid to the social and environmental issues of its operations, as well as to the company's social responsibility initiatives, according to Mr Mustapha Kotrane, head of the technical division of the reinsurer.
Mr Kotrane was speaking at a seminar on 19 September in Tunis, organised by Tunis Re. The theme of the seminar was "Insurers are mobilising for decarbonisation in Tunisia", reported the news site, Ilboursa.com.
He said, “In January 2024, Tunis Re unveiled its first carbon footprint, affirming its commitment to a sustainable and environmentally friendly future. As a global reinsurer, the company recognises the importance of taking concrete steps to achieve carbon neutrality by 2050, an ambitious goal shared by the entire industry.”
Several stakeholders from the insurance sector took the floor to discuss the challenges related to reducing the carbon footprint. They questioned the current carbon footprint and the measures that need to be put in place to improve it.
Mr Kotrane said that the seminar presented an excellent opportunity to discuss an initiative aimed at establishing a governance strategy within the insurance sector in Tunisia.
According to him, "In an ideal world, a carbon footprint should be the first step in determining the environmental aspect of our country's policy. It allows us to determine a strategy based on recognised calculations, aimed at moving towards greater sobriety in energy consumption, which can lead to a reduction in consumption costs."
Climate change
Mr Mahran Khalfouni, a department head at Tunisian Electricity and Gas Company (STEG), said that the energy sector contributes up to 73% of greenhouse gas emissions. The energy consumed by industrialists represents approximately 25%, the transport sector 16%, and the energy used in residential buildings 17%.
In second place is the agriculture and land use sector, with 8%, followed by industrial processes, such as the manufacture of cement or aluminium, representing 5%. Finally, waste, including solid landfills and the acidification of wastewater, contributes 3% of greenhouse gas emissions.
He mentioned two possible actions to address the issue of climate change. “First, we must participate in global efforts to mitigate the causes of climate change, which is called accumulation. Second, it is essential to develop regional and national policies to adapt to the impacts of climate change, which is called adaptation,” he said.
Insurance: between mitigation and adaptation
Mr Khalil Khalifa, CEO of the French company Green Way Systems, explained the territorial carbon footprint project and its impact on insurance activities. He stressed that, although binding commitments exist to reduce greenhouse gas emissions, the absence of sanctions makes compliance uncertain. This directly impacts insurers in the assessment of risks related to climate change.
He also explained that there are two levels of engagement: a basic level, developed specifically for the insurance sector, and a top-down level that aims to create data to measure contributions at the municipal and regional levels. This data is essential for insurers to better understand their environmental impacts.
Mr Khalifa also stressed the need to engage stakeholders in this process and to have reference data to guarantee the effectiveness of the territorial carbon footprint. This is important for the insurance sector to develop sustainable practices.