AA Insurance lays out carbon emission reduction targets

AA Insurance lays out carbon emission reduction targets | Insurance Business New Zealand

AA Insurance lays out carbon emission reduction targets

AA Insurance is seeking to reduce its carbon emissions by 42% by 2030, compared to 2020 base levels.

The insurer set its carbon emissions targets in line with the 2016 Paris Agreement, which seeks to limit the global temperature increase to 1.5 degrees Celsius by the end of the century.

AA Insurance’s efforts will focus on reducing emissions associated with its vehicle fleet (scope 1), office electricity use (scope 2), and air travel, paper and office waste (scope 3). The company’s carbon emissions were mostly caused by its fleet vehicles and electricity usage, which accounted for 84% of 2021 emissions.

Some of the actions the company has already taken include occupying Green Star-rated premises, purchasing sustainable office products, transitioning to an electric vehicle fleet and engaging staff to be more environmentally conscious. AA Insurance was also able to reduce emissions by 27% from 2020 to 2021, mostly due to COVID-19 travel restrictions and the transition of 85% of the fleet to hybrid electric vehicles.

With New Zealand recently passing a world-first law that requires financial firms to make climate disclosures, AA Insurance said that it is working on its preparedness to comply with the law by strengthening its governance relating to climate change, formulating strategies based on climate change risk and opportunity analysis, and disclosing climate-related financial risk information.

“As part of our belief in doing the right thing, we are committed to reducing emissions and preparing for the physical and economic impacts of climate change on our business, community, and across our value chain,” said Chris Curtin, chief executive of AA Insurance. “It’s important we play our part in this shared global challenge regarding climate change, which needs to be addressed by all levels of government, businesses, and individuals.”