If Insurance’s near-term climate targets approved by SBTi
– We want our targets to have as much impact as possible. By setting science-based targets, and including voluntary reduction measures for our claims operations, we hope to set an example that other insurance companies will follow, says CEO Morten Thorsrud.
If’s investment portfolio of about SEK 120 billion represents the majority of If’s total greenhouse gas emissions, and as a financial institution, If is required to set targets for the company’s investments. If has chosen to take its commitment one step further and also set targets for its claims operations, although there is no requirement to do so. Claims represent a substantial part of If’s total emissions, as If purchases goods and services worth more than SEK 11 billion every year within the motor and property segments.
– It is vital that we do everything we can to reduce greenhouse gas emissions. We can make an important difference by requiring and supporting our claims contractors to work ambitiously on sustainability – for example, by reducing material use and by repairing and reusing instead of using new parts. That’s why we want to include claims operations in our target setting, says CEO Morten Thorsrud.
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SBTi guidance on financial sector science-based targets
Financial institutions (FIs) must set targets that cover:
Scope 1: Direct emissions from owned or controlled sources, such as company cars.
Scope 2: Indirect emissions from the generation of purchased electricity, heating, steam and cooling, such as the heating and cooling of offices.
Scope 3: Investment and lending activities.
If’s Head of Sustainability, Philip Thörn, agrees.
– By actively requesting innovative solutions, resource efficiency, transparency and responsibility from our suppliers, we aim to minimise our negative impact and stimulate sustainable production and consumption.
Strict requirements, in combination with close cooperation with our suppliers and partners, enable us to develop our business while also contributing to more sustainable development, explains Thörn.
– We believe that the insurance industry should be more focused on the climate impact of this part of the business, and we are happy to go beyond the demands of SBTi.
If already repairs and reuses almost 3,500 tonnes of plastic and metal within vehicle repairs every year.
– We want our reduction to have as much impact as possible. We believe that the most ambitious way to ensure this is to join the SBTi and set science-based targets. As the leading insurance company in the Nordics, we hope to set an example that others will follow, says Thorsrud.
If’s next step will be to update policies and frameworks to support the reduction of greenhouse gas (GHG) emissions.
About Science Based Targets initiative (SBTi)
The Science Based Targets initiative (SBTi)is a partnership between United Nations Global Compact, World Resources Institute, World Wide Fund for Nature (WWF) and CDP.
The initiative drives ambitious climate action in the private sector by enabling organisations to set sector-specific science-based targets for the reduction of emissions in a measurable and standardised way.
Targets are ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.
A full list of If’s investment targets is available at: Companies taking action – Science Based Targets.
* Financed emissions in Scope 1 and 2 for equity and fixed income investments.
** If uses the Temperature Rating approach for corporate loans (except commercial real estate), listed equity, corporate bonds, funds and ETFs and the Sectoral Decarbonisation Approach (SDA) for corporate loans (commercial real estate).