It’s crucial now more than ever for everyone to take the necessary steps for climate action. We must each do our part in preventing catastrophes from impacting our planet any further, and that responsibility extends even to big businesses such as insurance. Consider utilizing an eco-friendly approach to insurance, as below.
Companies can go green by taking an eco-friendly approach to their operations. Thus, reducing their carbon footprint, and encouraging their customers to make climate-friendly choices, too.
Aviva Insurance’s sustainability goals to become a net-zero company by 2040 prove how insurance can contribute to the fight against climate change. Here are some of the ways to make that possible:
Paying out insurance claims can have a significant environmental impact. But by increasing the efficiency of internal processes, reducing the carbon footprint of suppliers, and engaging consumers about their climate goals and challenges, insurance companies can work to lessen associated emissions.
In property insurance, insurance companies can repair where possible to reduce waste, and encourage the switch to energy-efficient appliances, use tech to more efficiently assess claims. They can also use better processes to reduce landfill waste.
The Aviva claims service and eco-friendly approach can be seen in EcoClaims. They aim to reduce and divert landfill waste through sustainable claims handling. This was first piloted after catastrophic floods in southwestern British Columbia at the end of 2021. These floods caused over $515 million in insured damage.
The program involved a Green Site where waste from each claim was sorted, measured, and recycled where possible. Donation streams for the redirection of materials for repurpose or reuse were hosted by local charitable organizations and animal shelters. Furthermore, the opportunities to educate about sustainable sorting and recycling protocols were immense.
Insurance companies can tackle climate change in their underwriting approach. They can encourage customers to make climate-friendly choices through green products that support lower-carbon lifestyles, such as green home insurance and electric vehicle insurance.
They can also shift to underwriting businesses that transition away from the use of fossil fuels and focus on providing insurance coverages for renewable energy assets.
Investments that insurers make for customers and shareholders are a significant source of emissions in the carbon value chain. An insurance company cutting out the carbon intensity of their investments in credit and equities. For example, by halting investments and insurances in coal energy. Investing in green assets can make a huge difference in combating climate change.
Climate action isn’t an individual task—it’s a responsibility shared by everyone. Individuals and corporations alike must align in their climate ambitions. This is the only way to reach the common goal of a better Earth for our future. Following Aviva’s lead in aiming to become a net-zero company by 2040, the insurance industry can become much greener. Thus, can help people to assume a more empowered stand against climate change through their claims and investments.
