Aviva becomes the first major insurer worldwide to target Net Zero carbon by 2040

2 March 2021

Aviva has today announced its plan to become a Net Zero carbon emissions company by 2040. This is the most demanding target of any major insurance company in the world today. The undertaking, which will inform every aspect of operations and investment decisions at Aviva, is part of its strategy to be the UK’s leading insurer, contributing to a sustainable economic recovery.

Aviva’s 2040 Net Zero plan means:

• Net Zero carbon emissions from its investments by 2040;
• A clear pathway to Net Zero: a cut of 25% in the carbon intensity of its investments by 2025 and of 60% by 2030. This is ahead of the 50% cut required by the Paris Agreement;
• Net Zero carbon emissions from its own operations and supply chain by 2030.

It will cover Aviva’s scope 1, 2 and 3 emissions, and include shareholder assets and policy holder assets where Aviva has decision-making control.

Progress towards this target will be tracked through annual, public reporting. Aviva is setting out a pathway to achieve its goal with immediate actions and targets for 2025, 2030 and 2040. It will sign up to the internationally recognised Science Based Targets initiative so its work can be validated. Aviva uses active ownership to drive companies to reduce their carbon emissions. Aviva supports the transition to low carbon and will continue to invest in non-fossil fuel project finance bonds.

Aviva is taking further action on coal immediately. By the end of 2022 it will divest from all companies which make more than 5% of their revenue from coal unless they have signed up to the Science Based Targets initiative.

In addition, by the end of 2021, Aviva will have stopped underwriting insurance for companies making more than 5% of their revenue from coal or unconventional fossil fuels, unless they have signed up to the Science Based Targets initiative.

Aviva will also be the first insurer to put its Taskforce for Climate-related Financial Disclosure (TCFD) to an advisory vote at its Annual General Meeting of Shareholders in May this year.

Source: Aviva