Swiss Re takes further step in push for low carbon future

Swiss Re has become the first multinational company to introduce a triple-digit real carbon levy on both direct and indirect operational emissions. The move is a part of the reinsurer's efforts to transition to net-zero emissions in operations by 2030.

The company said that it will step up its internal carbon levy to $100 per tonne as of 2021 and will gradually increase it to $200 per tonne by 2030

The levy will fund compensation of residual operational emissions through high-quality carbon removal projects.

Additionally, the group has decided to further curb its flight emissions with a CO2 reduction target of 30 percent in 2021, meaning that the currently suppressed business travel activity will not go back to the pre-COVID-19 levels.

Swiss Re believes that the insurance industry can play a pivotal role through sustainable operations, risk knowledge, risk transfer solutions and investments.

In the fight against climate change, companies can use internal carbon pricing as an important tool to incentivise low-carbon behaviour and decision making.

“Today’s announcement is yet another proof point of how Swiss Re delivers on the climate action component of our sustainability strategy," said Swiss Re’s group chief executive officer Christian Mumenthaler.

“It also underscores our belief that leading companies can and must propel climate protection beyond mere compliance with current regulations."

Swiss Re is a signatory to the "Paris Pledge for Action’. Mumenthaler is also the co-chair of WEF’s Alliance of CEO Climate Leaders.