If Insurance has committed to the Science Based Targets initiative (SBTi)
- We believe that we all must contribute to fulfilling the Paris Agreement. That is why we have raised our ambitions and committed to the SBTi initiative, says CEO of If Insurance, Morten Thorsrud.
Climate change affects us all, and the latest climate science sends a clear warning that we must dramatically curb temperature rise to avoid the catastrophic impacts of climate change. Long-term solutions are required from all of us, citizens and corporations alike.
SBTi is considered the most ambitious form of corporate climate action, and in If, we see our commitment to Science Based Targets as a huge responsibility. If’s aim is to continually reduce its own emissions to support the transformation to a low-carbon society and to encourage partners and customers to reduce theirs.
If signed the commitment to Science Based Targets in October 2021. Companies joining the initiative must submit ambitious targets for company emissions reduction within two years after committing to the initiative.
The targets are then evaluated by the climate organization, Science Based Targets initiative (SBTi). If now works to clarify goals, evaluate investments and to set milestones to achieve our climate ambitions.
If has already launched the implementation of sustainability in our underwriting. We assess our customers from an ESG (Environment, Social and Governance) perspective to ensure focus on sustainability based on the principles from UN Global Compact. If is part of the volunteer network UN Global Compact through our owner company Sampo.
Transparency for investors, customers and partners
Progress towards Science Based Targets will be reported transparently and publicly: The targets will be communicated to customers, investors and other stakeholders, and progress will be disclosed annually.
Since 2008, If has achieved a reduction in CO2 emissions from own operations by 59 percent. If expects that our coming ambitious climate goals will create an increased effect throughout the company’s approximately 3.000 partners in the automotive and car-workshop industry and almost 1.000 suppliers in the recover and reconstruction businesses.
Already today we support and encourage claims handling contractors to work ambitiously on sustainability. All contractors must respect If’s Supplier Code of Conduct, which covers human rights, labor rights, environment and anti-corruption. In addition, If has sector-specific environmental requirements for property and vehicle repair contractors.
If’s priority is to ensure that waste and materials from repair processes are managed in the best possible way, and we encourage our contractors to minimize consumption of resources and materials and to reuse and recycle as much as possible.
CEO Morten Thorsrud states that the efforts to minimize greenhouse emissions will be intensified across the entire supply chain in If:
We will increase demands on our suppliers and partners to achieve future goals. We wish to both maintain and attract suppliers and partners who want to set and fulfill climate effort
Thorough analysis of investments
If follows the sector-specific guidelines for the financial sector. The Science Based Targets guidelines for the financial sector require that we include investments in our target setting. If’s investment portfolio of about SEK 120 billion, out of which almost SEK 5 billion are invested in green bonds, represents a majority of If’s total greenhouse gas emissions.
If will now set targets to align the investment activities with the Paris Agreement. An initial analysis of the investment portfolio shows If has good starting position - more than half of the portfolio can currently be categorized as aligned to the Paris agreement.
More than 1.000 companies in 60 countries and in almost 50 sectors have committed to reducing their emissions at the pace and on the scale required by Science Based Targets.
Read more about ESG and UN Globl Compact: Homepage | UN Global Compact
Read more about Science Based Targets: https://sciencebasedtargets.org
Next steps will be to conduct a bottom-up analysis of all investments, a review of the investment policy and an analysis of sectors and companies, all steps that lead to setting concrete emissions reduction targets. The targets will then be submitted to the SBTi for official validation within the time frame of two years from making the commitment.
About Science Based Targets (SBTi)
A science-based target is a climate goal based on the latest research and recognized methods. An SBT is verified by the independent agency Science Based Targets Initiative.
When a company commits to a climate goal at Science Based Targets, the company has two years to deliver targets to achieve the goal within a specific period - including specific milestones.
The targets must be based on the company's own mapping of CO2 emissions and must live up to the goals of the Paris Agreement. The targets are assessed and approved by an independent organization.
The Science Based Targets initiative is a collaboration between the Carbon Disclosure Project (CDP), the World Resources Institute (WRI), the World Wildlife Fund (WWF) and the UN Global Compact.
Science Based Targets: Sign up and become part of the future - YouTube