As the owner of a small business, reducing your carbon footprint is more than a nice thing to do.
A growing number of customers are including environmental responsibility in their purchasing decisions, so taking action may have a positive impact on your business.
It may also have an impact on your ability to attract quality employees. In response to survey commissioned by intranet company Unily in 2020, almost two-thirds (65 per cent) of participants said they were more likely to work for a company with strong environmental policies. In an environment where skills are in short supply that’s hard to ignore.
Now some insurers are taking steps to support that action.
NRMA Insurance, for example, has launched a Carbon Offset Program. This enables motor insurance customers to balance out their estimated yearly driving emissions by contributing to investments in projects designed to reduce greenhouse gas emissions.
This is part of a long-standing commitment to climate action from NRMA’s parent company, Insurance Australia Group (IAG). IAG’s purpose is to “make your world a safer place”. This includes taking practical steps to decrease the effects of a changing climate and reduce its own environmental footprint as well as those of its customers.
“In response to survey commissioned by intranet company Unily in 2020, almost two-thirds of participants said they were more likely to work for a company with strong environmental policies”
IAG joins Net-Zero Insurance Alliance
IAG is Australia and New Zealand’s largest general insurer whose brands include CGU, AMI, State and NZI as well as NRMA. As part of its overall commitment to achieving net zero emissions it has joined 28 other leading insurers as part of the United Nations convened Net-Zero Insurance Alliance (NZIA). The NZIA currently represents close to 15 per cent of the world’s premium volume.
The NZIA believes that the insurance industry has an important role in the transition to a net-zero global economy. As IAG Managing Director and CEO Nick Hawkins said in an announcement, “Weather and climate are core businesses for IAG. For nearly two decades, we have worked to understand climate change, its impacts on our business, and the ways we can help reduce climate risk for our customers and the impacts on communities.”
All NZIA members have committed to transitioning their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050.
Building resilience
Insurers have a close-up view of the effects of climate change. When they respond to the claims of customers affected by fire, flood and other severe weather events they see the impact for themselves. Along with a natural human instinct to reduce the devastation, it makes financial sense for them to reduce the damage and, therefore, the number of claims. Many are now working with their business customers to help them adapt to climate change by increasing the resilience of their infrastructures, facilities, and supply chains.
Deloitte’s recent report Climate product innovation within the insurance sector suggests that brokers can work with insurers to help customers manage this transition by providing commercially attractive opportunities. Perhaps it’s time to ask your own insurer how they’re supporting your commitment to environmental sustainability – and protecting the future of your business.
Your broker can help you put in place the right cover for your business and for your home. Get in touch to find out more.
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