In a groundbreaking document, the Insurance Council of Australia (ICA) outlines how insurers may achieve net zero emissions in their operations by 2030 and across all of their activities by 2050.
Boston Consulting Group wrote "Towards a Net Zero and Resilient Future" for the ICA, and it is based on significant consultation with the general insurance industry over the last 12 months.
The Insurance Council's climate change roadmap, which was unveiled on 2 November at the Insurance Council's Annual Conference in Sydney, outlines a path for insurers to reach net-zero through initiatives like investing in energy efficiency, installing rooftop solar for office buildings, and switching corporate fleets to electric.
Additionally, it provides a roadmap for insurers to take on the more challenging task of lowering emissions linked to underwriting operations, the claims supply chain, and investments, with the goal of achieving net zero by the year 2050.
Insurance companies have been vociferously promoting updated policies and investments to better guard against the danger of extreme weather because they are directly affected by its effects.
While some insurers have already embraced the plan, others will use the research to sketch out the tactical and strategic adjustments necessary to achieve its objectives.
From establishing a shadow carbon price to make sure investment portfolios are in line with the economic transition already under way to building electric vehicle charging infrastructure and insuring clean energy technology of the future, insurers are already acting to reduce emissions in a variety of different ways.
By 2050, Mr. Andrew Hall, CEO of the ICA, predicted that the cost of climatically induced extreme weather occurrences would be A$39.3 billion annually.
He continued, "This roadmap will be essential in enabling our industry to contribute to carbon reduction and the realization of the objectives of a net zero economy."
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