Aviva is taking a bold approach in leadership for the insurance industry. The company set the most demanding carbon emission target of any major insurance company in the world. “It won’t be easy to do, but we’re determined to take bold steps to help tackle the climate crisis,” the company said in a press release. The plan is for Aviva to be net-zero carbon by 2040.
This plan includes a breakdown of goals that are divided into timed deadlines. The first deadline is before 2025. During this time period, Aviva is taking immediate action on coal and will have stopped insuring companies that make more than 5% of their revenue from coal and other unconventional fossil fuels by the end of this year. By the end of 2022, Aviva plans to divest from and stop investing in companies that make more than 5% of their revenue from coal.
Aviva will be using 100% renewable electricity for all of its offices by 2025. Also by 2025, Aviva will only lease electric and hybrid vehicles for its 1,540-motor fleet. It plans to increase its green investments, and this includes £6 billion in green assets. Aviva Investors will also invest £2.5 billion in low-carbon and renewable energy infrastructure by 2025 while cutting the carbon intensity of its investments by 25%.
By 2030, Aviva will have a net-zero supply chain, net-zero operations, and have cut the carbon intensity of its investments by 60%, which is ahead of the 50% cut required by the Paris Agreement. By the time 2040 rolls around, Aviva plans to be 100% net-zero in its operations, supply chain, and in the investments it makes for its customers and shareholders.
Regarding investments, Aviva noted that this was important for it to become a fully net-zero company by 2040. “These are part of our Scope 3 emissions. It’s the investments we make for customers or shareholders that are the largest source of emissions in our carbon value chain. A financial services company not looking at its own Scope 3 is likely to be missing more than 90% of its carbon challenge,” the company said in an article on its website.
Aviva also pointed out that with an ambition that is 20 years into the future, it is important to set the destination. However, it means nothing without more immediate targets and milestones that mark the way. This is why they aim to cut the carbon intensity of their investments by 25% by 2025 and then by 60% by 2030.
Aviva Group’s Chief Executive Officer, Amanda Blanc, gave a statement on Aviva’s steps in tackling the climate crisis. “Aviva is taking bold steps to help tackle the climate crisis. As the UK’s leading insurer, we have a huge responsibility to change the way we invest, insure, and serve our customers. For the world to reach net-zero, it’s going to take leadership and radical ambition. And it’s going to take Aviva to play our part.”
Blanc also shared a message on Aviva’s plan for taking climate action. She pointed out that being the UK’s largest insurer brings huge responsibilities to its customers, shareholders, and all of the communities in which Aviva operates, but also a responsibility to ensure its business has little impact on the environment. She touched upon Aviva’s strong and long track record in promoting sustainability and noted that this — combined with the scope of the environmental crisis that is facing everyone — is what inspired Aviva to announce the most demanding carbon reduction plan of any major insurer.
“For over 300 years, Aviva has been a company that faces up to the challenges ahead. And with a climate disaster looming, those challenges have never been more pressing or threatening than they are today. Which is why we are setting out this plan to become a carbon Net Zero company by 2040
Our plan to reach that target covers not only the emissions we produce ourselves but also those contributed by our suppliers and, as far as possible, by those investments of our shareholders and customers. We have created distinct categories to manage and track progress which are detailed below.
We have always taken our responsibilities to society seriously, but the reality of the threat has mandated that this become a key strategic issue for us as a company, as it should be for all companies. Our ability to perform as a business is entirely dependent upon societies and economies being able to operate effectively and that will become increasingly impossible if climate change, and our role in accelerating it, is left unchecked. “
You can read her full message here.