Science based targets: Setting targets in line with climate science
If's CFO Måns Edsman in the picture above
We all need to support the transition to a low-carbon economy. Therefore, in October, we committed to the Science Based Targets initiative (SBTi), which requires us to set ambitious and science-based climate goals for If. More than 2,000 businesses and financial institutions already work with SBTi to reduce their emissions in line with climate science, and If is now one of them.
If has worked to reduce climate emissions since 2008, and we have achieved a reduction in CO2 emissions from our own operations of 59 % in this period. We expect that our ambitious climate goals will create an increased effect throughout the company’s approximately 3,000 partners in the automotive and car-workshop industry and more than 1,200 suppliers in the recovery and reconstruction business.
– We want our reduction to have the greatest possible impact in terms of limiting global temperature increase. We believe that the most ambitious way to ensure this is to join the SBTi, whereby we set climate targets that are based on the latest climate research, says CEO Morten Thorsrud.
We must all contribute
In 2020, If handled damage repairs and reconstructions for more than SEK 16 billion, divided between more than 560,000 instances of vehicle-related damage and almost 455.,000 instances of damage related to homes and properties.
– Our partners reuse and repair spare parts whenever possible. Last year, If reused almost 3,400 tonnes of metal and plastic instead of using new parts. But we believe we can do more. That is why we have committed to the SBT initiative – we must all contribute to fulfilling the Paris Agreement., says Morten Thorsrud.
The SBTi guidelines for the financial sector require that financial institutions such as If include investments in their setting of targets.
– If’s investment portfolio of around SEK 120 billion, of which more than SEK 6 billion is invested in green bonds, represents a majority of If’s total greenhouse gas emissions. We will now set targets to align the investment activities with the Paris Agreement. An initial analysis of the investment portfolio shows that If has a good starting position – more than half of the portfolio can currently be categorised as being in alignment with the Paris Agreement, says If’s CFO Måns Edsman.
The ambitious new targets must be set and approved within 24 months after making the commitment. If has begun work on clarifying future investments and goals and setting milestones for the achievement of If’s climate ambitions.
Science-Based Targets initiative (SBTi) in brief
SBTi is a partnership between the UN Global Compact, the World Resources Institute (WRI), the CDP and the World Wildlife Fund (WWF). The goal is to drive ambitious climate action in the private sector by enabling companies to set science-based emission reductions.
The climate targets must be set within two years and be in accordance with what the latest climate science deems necessary in order to meet the goals of the Paris Agreement and to keep global warming below 2°C, but preferably below 1.5°C.
The goals must be approved by SBTi and cover a minimum of 5 years and a maximum of 15 years from the date of submission. Progress towards the goals must be reported transparently and publicly every year.
Morten Thorsrud
CEO, Oslo
Måns Edsman
CFO, Stockholm