Zurich plans for net-zero 20 years before rivals
While top global insurers, reinsurers and brokers such as Munich Re, Swiss Re, SCOR, Willis Towers Watson are ramping up efforts to shift their underwriting portfolios to net-zero emissions by 2050, Zurich Insurance Group is optimistic of achieving these targets 20 years in advance - thanks to innovative nature-based carbon removal solutions.
Zurich is bringing forward by 20 years its target to achieve net-zero emissions in its operations. It now aims to reach the goal by 2030.
The insurer is planning to implement “deep cuts in absolute emissions” this very decade.
“Emissions that cannot be avoided will be removed from the atmosphere,” Zurich said announcing its new goal.
The company has signed carbon removal agreements with several suppliers of nature-based solutions. Some of these include InterEarth from Australia, Bio Restorative Ideas from Puerto Rico and Oregon Biochar Solutions from the US.
Zurich claims to have made advance payments that will help these suppliers further develop, scale and commercialise their early stage and innovative technologies. It said these solutions “can have the biggest impact on the development of the carbon removal industry”.
Furthermore, it has shortlisted projects to align with its broader sustainability goals including flood resilience, wildfire prevention, and support for good quality jobs in sustainable industries.
After initially focusing on biomass-based carbon removal, Zurich is now also looking at technological solutions such as direct air capture and storage.
To complement its net-zero strategy, Zurich aims to have 75% of its managed procurement spend with suppliers that have science-based emissions reduction targets by 2025 and net-zero targets by 2030.
Until 2030, the Group will maintain overall carbon neutrality in its operations, steadily increasing the proportion of its carbon removal offsets that qualify for net-zero certification.
The Group is engaging with customers and investee companies to promote the adoption of business models aligned with the Paris Agreement.
“Since we first started measuring our carbon footprint in 2007, we have avoided an estimated 1 million metric tons of CO2-equivalent emissions, and our focus remains on reducing them to a minimum,” said Alison Martin, CEO EMEA and bank distribution, and the executive committee member responsible for Sustainability.
“To balance out our unavoidable residual emissions, we are supporting innovative carbon removal solutions. The urgency of the situation means we need to be proactive and help scale up the carbon removal industry, which is still in its infancy.”
